According to Daiva Kuršelytė, deputy director general of Agrokoncerno Group, the increased financing limit will help supply farmers with agrochemical products and pay for purchased grain on time. As every year, the companies of the Agrokoncerno Group are fully prepared to meet the needs of their customers.
For Agrokoncernas, which sells agrochemical products, SEB Bank has increased the limit to EUR 115 million and Swedbank has granted an additional factoring limit of EUR 10 million. According to Edgars Šakys, the company’s director, the limits are increased, taking into account the company’s overall performance and results.
„We have many years of experience and we offer farmers solutions that we have tested ourselves and are based on science. We provide them with tried and tested and reliable products. We have proved time and time again that we are trustworthy through our successful development,“ said E. Šakys.
Commenting on the decision to increase the financing, Vilius Juzikis, member of the board and head of business banking at SEB bank, says that the companies of the Agrokoncerno Group have been developing and improving plant fertilisation technologies for many years, while sales of their products have been growing by 20–40% annually, whereas after the outbreak of the war in Ukraine, the group decided to discontinue its cooperation with Russia and Belarus, and to substitute them with other suppliers in Poland, Norway, Morocco, Canada andetc.
„Taking into account our long experience of successful cooperation with this group of companies, we believe that the additional financing provided by the bank will help to ensure the company’s future operations more smoothly and to manage the existing risks, while the high grain prices will allow Lithuanian farmers to spend more on growing their crops,“ said Mr Juzikis.
For Agrokoncerno Grūdai -another company of the Agrokoncerno Group, two banks, Luminor and Swedbank, have increased the financing limit to EUR 186 million.
The total financing limit for Agrokoncerno Grūdai was increased by EUR 71 million. Luminor’s share now amounts to EUR 136 million and Swedbank’s to EUR 50 million. Before this increase, the financing limit was EUR 115 million.
„Our long-standing client Agrokoncerno Grūdai needed such an increase due to changes in the grain market. The war in Ukraine and inflation have led to an increase in demand and prices of grain; additional financing was necessary to maintain trade volumes. Although grain prices are currently falling slightly, the additional limit will allow the client to have a buffer until the next price level is clearly foreseeable. We are therefore pleased to be able to contribute to the smooth continuity of the company’s operations,“ said Jonas Urbonas, head of corporate banking at Luminor.
Karolis Šimas, director of Agrokoncerno Grūdai, is pleased with the success of the long-standing partnership and the trust developed with the banks.
„The granting of a loan of this size is proof that we have reached the level of a strong international company. It is the result of many years of consistent work. Although grain procurement prices are very volatile at the moment, we are prepared for any price spike. We are pleased to have strong partnerships in place to ensure smooth and timely payments to farmers,“ said Mr Šimas.
Agrokoncerno Grūdai, a member of the Agrokoncerno Group, is the largest grain buyer in Lithuania. The company buys about 1.5 million tonnes of grain from farmers every year.