Group DF company enters a new market segment to meet the demand of small and medium-sized farmers for diesel fuel. Farmers will be able to purchase mineral fertilizers, plant protection products, seeds and fuel in a one-stop-shop service.
OSTCHEM RETAiL, the retail division of OSTCHEM nitrogen holding, a member of Group DF, has started selling diesel fuel. The service is provided to farmers throughout Ukraine and is delivered to the farm. The company will sell fuel produced in Ukraine, Belarus and Lithuania.
“We strive to provide farmers with a full range of agricultural services as a one-stop solution. The sale of diesel fuel is an important step in this direction,” noted Evgeny Khurylenko, line manager, OSTCHEM RETAiL. “We sell mineral fertilizers which is our main product. As a part of co-branding program with Syngenta, we also offer farmers the opportunity to buy plant protection products and seeds. Now when we add diesel fuel to this list, we cover up to 70% of the needs of the entire agricultural cycle of our clients.”
According to Evgeny Khurylenko, during the sowing season, the farmer counts every minute, and the all-inclusive service allows them to significantly save time on finding suppliers and signing contracts while ensuring uniform quality standards. OSTCHEM RETAiL loyalty programs will allow farmers to significantly save on financial resources.
During agricultural activities, the farmer uses up to 100 liters of diesel fuel per hectare; fuel costs account for about 15-20% of all the agricultural cycle costs of the farmer.
Group DF analysts estimate the volume of Ukrainian diesel fuel market for the agricultural sector at about UAH 40 billion.
Earlier it was reported that OSTCHEM RETAiL (part of Group DF) concluded direct agreements with 6 Ukrainian banks on directed lending to purchase nitrogen fertilizers by farmers. Banks that provide concessional (soft) loans to agricultural producers include: ProCredit Bank, FUIB, Alliance Bank, Agroprosperis Bank, MTB Bank and PrivatBank. Aside from this, OSTCHEM RETAiL, the international company SYNGENTA and a number of Ukrainian and foreign partner banks opened opportunities for the farmers to buy on credit fertilizers, seeds and plant protection products in a single solution.
“We expect that in the future, concessional lending programs will not only include the purchase by farmers of fertilizers, seeds and plant protection products, but will also cover the purchase of fuel,” added Yevgeny Khurylenko.