Punjab utilised Rs 290 billion of Rs 336 billion agriculture credit in fiscal year 2013

Punjab utilised Rs 290.3 billion agricultural credit of the total allocation of Rs 336.2 billion by the State Bank of Pakistan (SBP) for FY13. The major share of agri credit amounting to Rs 290.3 billion was disbursed in Punjab during 2012-13 against the target of Rs 246 billion and its share in total disbursement stood at 86.3 percent.

In Sindh banks disbursed Rs 36.3 billion or 82.6 percent against the target of Rs 44 billion during the 2012-13, according to an official document made available to Business Recorder. According to the document, the Khyber Pakhtunkhawa received Rs 8.4 billion or 47.3 percent of the target allocation for agricultural lending. Out of the total agri credit allocated by SBP, Balochistan received 6.6 percent; Azad Jammu Kashmir 37.1 percent and Gilgit Baltistan 29.4 percent.

The SBP fixed Rs 315 billion agricultural credit disbursement to banks for the year 2012-13. The target was 10.5 percent higher than the target of Rs 285 billion and 7.2 percent higher than the actual disbursement of Rs 293.8 billion during 2011-12. During the year 2012-13 banks surpassed agri credit disbursement target and disbursed Rs 336.2 billion against the target of Rs 315 billion, which is Rs 21 billion in excess of the target for the fiscal year 2012-13 and 14.4 percent higher than last year''''s disbursement of Rs 293.8 billion.

Five commercial banks collectively disbursed agri loans of Rs 172.8 billion or 112.6 percent of their annual target, higher by 18.0 percent from Rs 146.3 billion disbursed during the corresponding period last year. Under specialised banks category, ZTBL disbursed Rs 67.1 billion or 93.1 percent of its annual target of Rs 72 billion while Punjab Provincial Co-operative Bank Limited (PPCBL) disbursed Rs 8.3 billion by achieving 92.3 percent of its target of Rs 9.0 billion during financial year 2012-13.

As many as 14 domestic private banks as a group achieved 103.6 percent of the target. While the group of five microfinance banks surpassed their annual targets of Rs 13.8 billion by disbursing agri loan of Rs 18.7 billion during FY13. Out of total disbursement of Rs 336.2 billion during 2012-13, Rs 199.6 billion or 59 percent were disbursed to farm sector and Rs 136.6 billion or 40.6 percent to non-farm sector. However, during corresponding period last year, a total of Rs 293.8 billion was disbursed of which Rs 196.2 billion or 66.8 percent was disbursed to farm-sector while non-farm sector received Rs 97.6 billion or 33.2 percent of the total disbursement by banks.

Copyright Business Recorder, 2013

Financial matters of TCP with NFML and USC resolved

In line with the directives of the Economic Co-ordination Committee, the Ministry of Industries has resolved the long-standing financial disputes of Trading Corporation of Pakistan with National Fertiliser Marketing Limited and Utility Stores Corporation. Sources told Business Recorder on Friday that there were several financial disputes relating to supply of commodities (urea and sugar) and despite TCP''s several requests, NFML and USC were using delaying tactics to clear/settle these dues/payments.

Some of the financial disputes occurred in 2008, however, the concerned departments were not taking interest in resolving these issues through reconciliation process offered by the TCP. The delaying tactics in the settlement of these issues by NFML and USC forced TCP to take up these with the ECC. Newly-appointed chairman TCP, Rizwan Ahmed raised the issue at the ECC meeting and sought an early settlement to manage the TCP accounts in a proper manner.

On the request of the TCP chairman, the ECC in its meeting on October 2, 2013 directed the Ministry of Industries & Production (MoIP) to initiate reconciliation process and resolve financial matters of TCP with NFML and USC before next meeting. Following the directives of the ECC, ministry of industries conducted a meeting on 4th and 5th with the representatives of these three entities to settle the disputes.

The meeting was chaired by Senior Joint Secretary (FAR) MoIP and attended by Muzammil Pasha, ministry of industries, Muhammad Hafeez GM Finance TCP, Anwar Sehto GM POD TCP, Hamid Khan GM Accounts TCP, Faiz Ali Bokhari Acting GM Finance NFML, Fakhr Cheema GM Distribution and Marketing NFML, GM Operations USC and representatives of the ministry of commerce and textile industry.

TCP officials informed the meeting that NFML was not making payments of excess quantity of urea being supplied by the corporation as it claimed Rs 263.9 million against supply of 16,179 tons. During the meeting, after sharing the documents, it was revealed that up to M V Jumbos berthed on August 28, 2010, NFML did not withhold the sales proceeds against the excess quantity. It was, however, randomly checked mutually and revealed that around Rs 157 million payment was already made by NFML to TCP on account of excess quantity.

Meanwhile, NFML admitted that the excess quantity post M.V. Jumbos was not paid, which comes to around Rs 117 million, and will be paid by NFML next week. Another issue of TCP godown rent for 2010 amounting to Rs 31.5 million was discussed and documents were shared. The NFML intimated that they will put up the case to the Managing Director for approval and subsequent payment.

In addition, TCP also raised a dispute of transportation and demurrage payment worth Rs 84.5 million. During 2009, TCP lifted and transported some urea from ports to its godowns, besides payment of demurrages. However, NFML agreed for shifting of urea from two ships - M.V Yordan Lutibrodski and M.V African Grace for 3,300 tons and 2,200 tons, respectively. Regarding rest of five ships quantity shifted by TCP to Landhi Godown, TCP will provide relevant record as evidence to their claim.

The meeting also discussed TCP financial disputes with USC and representatives of both entities informed the meeting that wheat outstanding of Rs 3.5 billion (2007-08) has been settled and paid. While regarding sugar payment issue, USC is paying Rs 500 million weekly on a regular basis, while Rs 2.5 billion on account of quantity are in circulation which will be paid on realisation of sales proceeds of sugar.

Source said the TCP chairman was striving for last few months to get these disputes resolved and finally the TCP team has made it successfully and settled all issues with NFML and USC. They said a presentation on these settlements was due in the last ECC meeting but it could not be made due to paucity of time. Now it is being expected that the ministry of industries, TCP, NFML and USC representatives will brief the ECC in its next meeting.

Copyright Business Recorder, 2013

Without growth in agriculture, manufacturing economy can't provide jobs - Economist

An Economist Prof Peter Quartey has said Ghana should be looking at 10-14 per cent growth rate in the economy if it is serious about transforming the lives of the people.

He added the growth must be seen in key sectors of the economy before its impact will be felt.

He was reacting to President John Mahama’s projection of a nine per cent growth rate in the year 2013.

Prof Quartey said the president is poised to achieve many of his targets because of the growth of the oil economy.

He said the country must not only be interested in growth but must also take into consideration the sectors in which the growth is recorded.

He noted the agricultural and manufacturing sectors are key in terms of development of the country and warned however that if the growth is not seen in these two key sectors of the economy it will be “jobless growth.”

Prof Quartey is targeting a ten per cent increase in growth rate.

Original Article Here

AB Bank to introduce agriculture lending, e-business

By ESTHER MSETEKA

AB Bank says plans are under way to introduce the Agricultural lending and e-business as the banks’ new products next year.

Chief operations officer Karin Everding says the bank, in its effort to expand, has come up with the two products in order to supplement Government effort in bridging the gap between the banking sector and the peasant farmers.

“Our highest lending rate is 10 percent and this puts us in a special position as a best micro business bank with no maintenance charges on all accounts,” Ms Everding said.

She said the agricultural lending product will be a great opportunity for peasant farmers because it will help them improve on their farming.

The bank says with its expansion programme of opening new branches across the country, it has deliberately put in place a policy of employing graduates from universities and colleges to help reduce the number of jobless youths in the country.

“The young people are very loyal to the bank as they witness their career grow in the banking sector,” she said.

She said the bank in collaboration with Celpay offers mobile payment services.However, this will be implemented after some technicalities are put in place next year.

“Having an electronic wallet, you can upload and download cash on the cash counter at AB Bank Zambia when you are in a location where the bank does not exist, just go to a Celpay agent, where you can deposit or withdrawal cash from your electronic wallet,” Ms Everding said.

She said currently the bank has a workforce of about 150 and hopes to double the number next year as the bank expands.

Original Article Here

Idaho agriculture will set a revenue record in 2012

By SEAN ELLIS

BOISE -- Idaho agriculture's record for total farm gate receipts in a calendar year will be broken in 2012, a scenario that seemed very unlikely to economists several months ago.

With grain and forage prices at high levels and with some improvement in milk prices during the latter part of the year, "It's pretty evident we will set a new record for total revenue," University of Idaho agricultural economist Paul Patterson said.

The actual numbers, which are contained in UI's annual "Financial Condition of Idaho Agriculture" report, won't be released until university officials present them to lawmakers in early January at the onset of the 2013 Idaho Legislature.

But Patterson said cash receipts for all Idaho farm commodities combined will be up about 5 percent this year, which means last year's record of $7.4 billion will be exceeded by almost $400 million.

Total net farm income will also be up about 5 percent, which means last year's record of $2.64 billion for that category will fall by more than $150 million.

The report will show no change in ranking for Idaho's top seven ag commodities: dairy, cattle, potatoes, wheat, hay, sugar beets, barley, dry beans and onions.

It will also show that many of the state's top farm commodities set all-time records for cash receipts in a calendar year.

That includes dairy, the state's top farm commodity when it comes to farm gate receipts.

But setting a record for total revenue is small consolation for the state's dairy producers, who have had to deal with record expenses as well.

The numbers "mask the serious financing situation that exists for a large number of dairy producers in the state," Patterson said. "These high feed prices are really killing them. There are still some very serious issues (with) the dairy industry."

High feed prices are benefiting a lot of farmers, "but the dairymen and anybody feeding cattle is struggling," said Kuna dairyman Jack Davis. "If you're not profitable, (the record is) no consolation."

Last year's record of $7.4 billion was far above the former record of $6.22 billion set in 2008 and heading into this year's growing season, ag economists in the state said that while 2012 would be a good year for Idaho agriculture, the record was safe.

But Patterson said that all changed earlier this summer when corn prices began to soar, affecting other commodities as well. As an example of how the situation changed, he points to a USDA report in May that forecast an average U.S. corn price of $4.60 in 2012.

The forecast in the December report was $7.40, and the forecast for wheat similarly rose from $6.50 to $8.

UI ag economists are estimating total farm expenses in Idaho increased 8 percent in 2012.

Wheat and barley prices are up significantly, "but nitrogen and fuel are up, too," said Driggs grain farmer Mark Trupp. "Almost all the grains are up, but expenses are up, too."

Original Article Here

Financialized Agriculture: The New Realm of Social Activism

By Jennifer Clapp, Triple Crisis | News Analysis 

In August, two European banks announced that they would be scaling back investment in agricultural commodities. Germany'sCommerz bank and Austria's Volksbanken both removed agricultural products from their index fund products. Several months earlier, similar moves were made by three other German banks, including Deutsche Bank.

The banks' initiatives followed criticism from NGOs about the role of financial speculation on agricultural commodities in driving up food prices. With food prices already facing upward pressure this summer as the US faces a severe drought, the campaigners have lambasted banks and other financial institutions for seeking to profit from such a volatile situation.

The fact that a number of banks have chosen to restrict their involvement in agricultural commodity-based investment products is a noteworthy victory for civil society groups that have been tirelessly working on this issue since the 2007-08 food crisis. The World Development Movement, Oxfam and Friends of the Earth Europe, for example, have been at the forefront of NGO research and public education about the role of financial speculation in exacerbating world hunger.

There has been a lively debate in policy circles about whether financial speculation does in fact lead to higher food prices. A number of financial institutions and economists (often referring to this OECD report) have argued that such a link is not supported by evidence. As a result, they have resisted the idea of policy change, including stepped up regulation for these markets.

NGOs have highlighted the strong correlation between financial market deregulation, increased financial investment in agricultural commodities, and food price volatility. Reports such as the World Development Movement's Broken Markets, Oxfam's policy brief Not a Game, and Friends of the Earth's Farming Money, have made this case.

Many international organizations tried to stay neutral in this debate in the heat of the food price spikes in 2007-8. But since that time, some organizations have been more willing to wade in. The Bank for International Settlements, for example, pointed out in its 2011 annual report that whether or not speculation is the central driving force determining food prices, it does appear that increased financial investment in agricultural commodities exacerbates food price volatility.

It may be that the sudden moves by the banks to scale back their agricultural commodity investments have been driven by a desire to save their reputation in the face of criticism. Indeed, it is interesting to note the new focus of corporate social responsibility initiatives in this area. The banks' announcements followed the publication of The Responsible Investor's Guide to Commodities by the Global Compact, the UN Principles for Responsible Investment and the Swiss government last September. One of the report's specific recommendations for agricultural commodity markets is: "Do not participate in markets where financial investors' contribution to increased volatility could be substantial."

But the motivations for the banks' recent moves could also be more complex than they appear the surface. The banks themselves did not elaborate in any great detail on the reasons behind their decisions. It could be driven by market demand for those products. Some reports noted that exchange traded agricultural products were already losing favor with investors in the months leading up to the most recent bank withdrawals from agriculture. Financial gains on commodity futures might not be as promising as they seemed to investors in 2007-08.

At the same time, most banks are not admitting any link between their financial activities and food prices. Deutsche Bank, for example, stressed that it was only temporarily ceasing to introduce any new products while it studied the issue. A note devoted to the issue on the Bank's website stresses that "...agricultural derivatives markets remain a crucial tool in providing financing mechanisms across the agricultural value chain."

The Financial Times also noted in a recent article that the European banks have only stepped out of the higher profile investment products that trade on exchanges, and not "the far larger and more opaque world of over-the-counter swaps, notes and structured products." Most financial institutions are in fact deeply involved in much more sophisticated financial products linked to the agricultural sector that reach deeper into agricultural commodity chains than the index funds that simply track prices of commodities. They are also getting into investments that track the performance of agricultural commodity related firms, and also directly into farmland.

It's not just the big banks that are offering a suite of complex financial investments in the sector, either. The large commodity trading firms, as pointed out in Oxfam's recent report, Cereal Secrets (by Sophia Murphy, David Burch and myself), are also offering financial investment products to third party investors in addition to their own financial investments in the sector. These firms don't appear to be pulling back on these investments. Indeed, just last week, CEO of Glencore Chris Mahoney bragged that the current volatility in food prices should be "good for Gelncore."

Financial speculation in agricultural commodity markets is an enormously complex issue that requires continued close study and attention. The recent moves by major European banks to scale back agriculture related financial investments is a positive step, but it is not by any means the only move that needs to be taken. Tighter regulation of these markets is still sorely needed.

Original Article Here

APEC agrees to avoid protectionism in agriculture: Russia

Asia-Pacific finance officials agreed that any protectionist measures, especially in the agricultural sector, are not helping global economic growth, Russia's Finance Minister Anton Siluanov said on Thursday.

Siluanov also said that any protectionist measures in the agriculture sphere would be "short-sighted".

A special joint ministerial statement said that the finance ministers of APEC economies "will also remain vigilant of other commodity prices, highlighting the need to avoid export bans, and other restrictions that are inconsistent with WTO rules in response to rapid increases in agricultural commodity prices."

(Reporting by Douglas Busvine; Writing by Katya Golubkova; Editing by Megan Davies)

Original Article Here

Rwanda: Good Tidings From Agriculture Sector

There was some good news from Parliament last week. On Thursday, Prime Minister Damien Habumuremyi presented the state of the agricultural sector before deputies and Senators. This is a sector that employs over 80 per cent of the populations.

Overall there was a marked increase in crop and animal production stemming off food scarcity recently witnessed in some countries in the region. Land consolidation, hillside and marshland irrigation and the use of fertilizers were cited as some of the key drivers that were behind the increase in agriculture production.

Consolidated land increased from 250ha in 2010 to the present 624ha while 54 per cent of the farmers currently use fertilizers.

Production of some crops like maize and Irish-potatoes has since doubled; Irish potato production increased from 8 tonnes per hectare in 2007 to 16 tonnes per hectare today. There was good progress in the livestock sector with increased milk production largely boosted by the One Cow per Family Programme.

The use of marsh land for crop production has also been a big boost to the sector. Maize production is expected to hit its peak, especially in the Eastern Province where marsh land was optimally utilised.

These are enviable developments in a sector that has largely attracted little investment from the private sector and the glaring reluctance by banks to finance agricultural projects that are considered risky undertakings.

Sustaining this growth calls for sustained efforts in designing policies that will entice more investments, especially from the private sector.

These should be policies that should ensure that agriculture sector is run as a viable business and not only for subsistence production.

Policy makers will have to play a key role for this to be achieved. Recently Mt Meru, an oil company, inaugurated an edible oil refining plant in the Eastern Province district of Kayonza. This is one of the biggest investments to be recorded in agriculture by the private sector.

Swayed by the friendly investment climate in the country and soils that are condusive for oil seed production, company owners are optimistic but say more needs to be done.

For the plant to operate at its maximum capacity, they say, it will require sustained supply of oil seed. They say the plant has the potential to benefit thousands of farmers if only the right policies are put in place.

In Tanzania where the company runs a similar business, the country's parliament has put in place policies that have helped boost production of oil seeds and incomes for small scale farmers.

In the 2011-2012 budgets, the Tanzanian government decided to levy zero rate VAT on edible oil made using local oil seeds. This means that the local manufacturer has a price advantage of 18 per cent over imported palm oil and can therefore, give a better price to local farmers who, in return enhance production of seeds.

This move led to a doubling of production in just one year. This consequently resulted in better monetary returns for thousands of farmers and a boost to the local oil industry.

Such sector friendly policies, in addition to other programmes like irrigation, agricultural mechanization, post-harvest management, strengthening cooperatives, crop intensification, value addition and financing, will no doubt boost the sector that is vital to the national economy.

Original Article Here

Deyu Agriculture Corp. Promotes Acting CFO

BEIJING, May 30, 2012 /PRNewswire-Asia-FirstCall/ -- Deyu Agriculture Corp. (DEYU.PK) (the "Company"), a Beijing, China based vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and grains, today announced that it has promoted Ms. Amy He from Acting Chief Financial Officer to Chief Financial Officer of the Company.

Ms. He has served as Deyu's Acting CFO since February 2012. She previously served as the Company's Financial Controller in 2011.

"We are very pleased that Ms. He will continue to be a part of our management team," said Mr. Jianming Hao, Deyu's Chairman and Chief Executive Officer. "She has considerable experience in financial management, strategic planning, operations and manufacturing, and we are confident that her background and skill set will continue to significantly benefit Deyu and our shareholders as we further implement our growth strategies."

Ms. He previously served as an audit manager for Deloitte Touche Tohmatsu CPA Ltd. in China fromJuly 2005 through September 2011. At Deloitte, she served multinational corporations and Chinese corporate clients, including private companies and public listed companies in the United States. Ms. He earned a Masters Degree in Management from the Chinese Academy of Sciences and a Bachelors Degree in Accounting from Tsinghua University in China. She is qualified as a Certified Public Accountant in China and a Certified General Accountant in Canada.

"Deyu has many exciting opportunities ahead as it addresses the rising demand for natural, green and organic foods in China," commented Ms. He. "I look forward to continue leading the Company's finance team and working with our investors as we strive to become a higher value-added grain-based food processing company."

About Deyu Agriculture Corp.

Deyu Agriculture Corp. is a vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and grains operating in Shanxi Province of the People's Republic of China. The Company has access to over 109,000 acres of farmland in Shanxi Province for breeding, cultivating, processing, warehousing and distributing grain and corn products. Deyu has an extensive wholesale network in over 15 provinces and a retail distribution network of approximately 20,000 supermarkets and convenience stores in 29 provinces across China. Deyu's facilities include advanced production lines and modern warehouses with a total production capacity of over 105,000 tons for grain products, storage capacity of over 100,000 tons and annual turnover of 700,000 tons for corn products. The Company's website is located at www.deyuagri.com.

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Deyu's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, general economic conditions; geopolitical events and regulatory changes, availability of capital, changes in the agricultural industry, the Company's ability to maintain its competitive position. Additional Information regarding risks can be found in the Company's quarterly and annual reports filed with the U.S. Securities and Exchange Commission atwww.sec.gov. 

Investor Contact:

Mr. Kevin Fickle, President
NUWA Group LLC.
Tel: +1-925-330-8315
Email: kevin@nuwagroup.com

Company Contact:

Ms. Amy He, Chief Financial Officer
Deyu Agriculture Corp.
Tel: +86-10-5224-1802 X389
Email: amy@china-deyu.com

Ms. Cynthia Yang, Assistant to Acting CFO
Tel: +1-646-820-8060
Email: deyuintl@gmail.com

SOURCE Deyu Agriculture Corp.

Original Article Here