DuPont Pioneer Seed Co. Launching Crop Barter Program in Ukraine

DuPont Pioneer is launching a crop bartering project in support of farmers in Ukraine.

The economic fallout resulting from the ongoing conflict with Russia in the country has made obtaining credit difficult and expensive for farmers, especially since Ukraine’s central bank recently raised interest rates from 19.5% to 30% as part of a package of measures aimed at stabilizing the country’s economy.

Under DuPont Pioneer’s pilot program, DuPont will continue to distribute seeds to farmers either directly or through distributors, and in return, the farmer or distributor is given the option to pledge agricultural produce as a barter-system payment for the seeds. If agreed, a multi-party agreement is drawn up, which includes an exporter or trader who will sell the crop, and in turn, pay DuPont Pioneer for its supplied seeds. Programs of this nature have shown good results in South America, and DuPont Pioneer states it has already formed cooperative agreements with a couple of major traders in Ukraine.

DuPont Pioneer, a major supplier of hybrid corn, sunflower, and rape seed, has had a presence in Ukraine since 1998 when it opened its representative office in Kiev and began testing corn and sunflower hybrids. The company has stated that it will continue to invest in its seed production facility, established in the Poltava region of the country in 2013. To date, $50 million has been invested into the operation, including $11 million to develop a second corn seed production line last year. It is estimated that the total value of the project will reach $90 million.

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