While his sons are serving in the Ukrainian Army to defend their country, Volodymyr Tsikhotskyi, a farmer with 35 years of agribusiness experience, is doing his part to contribute to the country’s food security. Local authorities in Lviv Oblast in western Ukraine asked farmers there to expand production to more hectares, including land that was not arable before the war.
Volodymyr was on board immediately, decisive in his support of this initiative. “Our fellow farmers in the east [of Ukraine] cannot sow. So, we must do that here. We must support Ukraine’s economy,” he explained.
Credit unions provide affordable financing for farmers in Ukraine
Affordable finance is key for every agribusiness’s operations and growth. Micro-, small- and medium-sized agricultural enterprises (MSMEs) in Ukraine are rarely the target audience for commercial banks, as their needs are too small-scale. So, their choice of a financial partner is often a credit union. Cooperative finance is also more beneficial for agricultural MSMEs, as they receive better and more loyal customer service, individualized attention and less bureaucratic lending procedures.