Contract Banking Programme: the tool for agricultural growth
Contract Banking Programme launched by Piraeus Bank, is an innovative financing model which supports agricultural production & food processing as well as the retail sales and promotion of agricultural products.
- Contract Farming Programme
- Contract Banking Agricultural Inputs
- Contract Banking for Hotels
- Contract Banking for Retailers
The initiative started with Contract Farming Programme acting as a key catalyst for modernizing and improving the competitiveness of the agricultural sector. The Programme adapts to the needs and exploits the capabilities of all stakeholders in the agricultural sector. In this context, it provides the necessary working capital, to the producers, the processors and the marketing enterprises of agricultural products, thereby improves production efficiency and supports the extraversion of Greek agriculture. Indicative of the Piraeus Bank Contract Farming Programme success, is the fact that at the end of the year 2017, more than 300 contracts with Agricultural Enterprises/Agricultural Cooperative/Farmer Groups were implemented, covering a range of more than 50 products. Moreover, the above mentioned contracts contribute to the Greek economy with more than €1,5 billion exports to more than 75 countries.
The step that followed Contract Farming Programme initiative, was its expansion to the Agricultural Inputs Sector. By implementing the extended Contract Banking Program, Piraeus Bank follows a holistic approach to the financial support of the agri-food value chain. More specifically, to contribute to the reduction of the production cost of agricultural products, the bank offers the appropriate working capital to agricultural supply stores so that they will be enabled to benefit from preferential pricing due to cash payment.
Moreover, in the context of the expanded Contract Banking Programme, implemented the sectoral link between the primary sector and the hotel industry in order to promote Greek agricultural products to tourists who visit our country. Piraeus Bank offers working capital to hotels to procure branded certified products from enterprises and cooperatives registered with the Contract Farming Programme.
Finally, Piraeus Bank applied the idea of Contract Banking Programme to the retail sector. Specifically, the Bank finance enterprises of this sector so that they can buy and pay “in cash” from their suppliers (enterprises who participate in Contract Farming Programme). At the same time, Piraeus Bank coordinates, through a specially designed electronic payment platform, the cooperation between them in order to upgrade the quality and security of commercial transactions and to ensure liquidity through a simple and rapid process.