Categories
Bankruptcy Commodities

Phoenix Commodities has gone into liquidation after amassing $400m in potential trading losses

Phoenix Commodities, a trader of agricultural products with offices in Dubai and Singapore, is being liquidated after amassing more than US$400 million (S$567 million) in potential trading losses. It was valued at $1.1bn-$1.24bn as recently as January, according to a document filed by its provisional liquidators.. The Phoenix Group, which was registered in the British Virgin Islands, operated globally with about 100 corporate entities located in Europe, Africa, Asia, Australia and North America and employed over 2,500 people.

First Abu Dhabi bank reports $73.3m exposure to Phoenix Commodities. Emirates NBD, Mashreq, HSBC Holdings and Standard Chartered were also owed millions by the company.

ArabianBusiness.com

Phoenix Commodities began as a rice trading business in 2001. Its executive chairman, Gaurav Dhawan, became the majority shareholder in 2006 and expanded its activities. It had three main divisions – agrifoods, resources (coal and metals trading) and consumer brands. Phoenix traded 12m tonnes of commodities and goods last year and claims to be one of the largest rice distribution companies in the world.

Categories
Crop Insurance

Crop insurance brings food security for farmers

The R4 Rural Resilience Initiative by the World Food Programme (WFP) provides an important platform for educating smallholder farmers on climate risk adaptation. The initiative, which began in 2017 in Kitui County in eastern Kenya, enables the poorest farmers to manage climate risk through crop insurance that they can access by participating in risk reduction activities. Under the R4 Initiative, farmers are financially compensated if their crop yields are low which enables them to keep their animals and other assets and still be food secure.

A farmer is compensated for the difference between the weight of what they have harvested and the average weight of the historical yields of that given ecological area

Crop insurance payouts have been critical in protecting poor families in times of severe drought or other shocks. However, insurance alone is not a magic bullet; that’s why crop insurance is integrated with improved farming techniques and infrastructure. If more smallholder farmers had access to this kind of initiative, the need and cost of humanitarian assistance could be vastly reduced.

Read more at WFP_Africa

Categories
Investments

AGRA invests $2.5 million to boost Agri-Business Capital (ABC) Fund

THE Alliance for a Green Revolution in Africa (AGRA) has invested $2.5 Million to boost the share capital of the Agri-Business Capital Fund (ABC Fund). The ABC Fund is a initiative of AGRA, the European Commission through its EU-ACP agreement, the Luxemburg Government and the International Fund for Agricultural Development (IFAD) to support sustainable and inclusive agricultural value chains for smallholder farmers and small-to-medium sized rural agribusinesses (SMEs) in developing countries.

ABC Fund focuses on investments that can drive economic and social development and generate economic opportunities for smallholder farmers, in particular women and young people, with an aim of improving livelihoods of more than 4 million individuals over the life of the fund.

Read more at Vanguard

Categories
Policy

Young millennials as the future of Philippine agriculture

The Department of Agriculture (DA), Philippines, is set to engage 900 fresh graduates (batch 2019-2020) as ‘frontliners’ to assist in the implementation of agriculture programs in each congressional district nationwide. Millennials will be tapped as on-the-job trainees (OJTs) for about six months, given an attractive allowance, and later will get employed and detailed at each congressional district under the DA-Agricultural Program Coordinating Offices (APCOs). Each province has a DA-APCO that coordinates with local government units in the implementation of agricultural banner programs — rice, corn, high value crops, livestock (small and large ruminants) and poultry. It makes recommendations and conducts monitoring services to ensure that national and regional DA policies and programs are effectively and efficiently cascaded at the local level.

Eventually, when their OJT stint is over they can develop their respective agri-fishery business plan to be pursued as a project in their own localities. The initiative is being tied up with the DA’s Kapital Access for Young Agripreneurs (KAYA), a loan program launched in January 2020 to entice young Filipinos to engage in farming and fishery ventures and agribusiness and food processing enterprises. Under the management of the DA-Agricultural Credit Policy Council (ACPC), the KAYA financing program, with a total funding of P1B, lends P300,000 to P500,000 per borrower, payable in five years at zero interest.

Read more at Philippine Information Agency

Categories
Uncategorized

What is Agricultural Accounting?

Agricultural accounting applies to your family farms or corporations runs their business in agriculture. It does not matter what kind of products you produce or sell in the market. The agricultural production cycles are so unique that the accounting methods used in other industries can not be applied in some cases. For example, some crops are annual or perennial. Some livestock is raised for sale or raised as breeding livestock. Depending on types of crops and livestock, and at which stage of the life cycle crops are in influence the selection of proper accounting methods.

Inventory valuation methods used in agricultural accounting are:
Lower of Cost or Market, LCM, usually means that the inventory is valued at its cost. Net realisable value, NRV, is used when the actual cost of the inventory is difficult to determine.

Read more at Own Biz Accounting

Categories
Uncategorized

Experts welcome agri stimulus, stress on proper distribution

Prime Minister (PM) Sheikh Hasina on Sunday declared to form a Tk 50 billion scheme for small and medium scale farmers who could get loan at 5.0 per cent interest rate in Bangladesh. The decision came following an upcoming probable food crisis across the globe due to the virus pandemic. While declaring the scheme, she said the government will provide the incentives so that no land can remain uncultivated. Farmers will be able to continue their production to avoid any kind of food shortage in the country. Poultry, agricultural farm, spice, fruits and other food crop producers could get the loan facility. Appreciating the government’s move to provide Tk 50 billion loan to farmers at low interest rate, experts put emphasis on its proper distribution.

Read more at The Financial Express

Categories
Uncategorized

USDA Announces Loan Maturity for Marketing Assistance Loans Now Extended to 12 Months

Agricultural producers now have more time to repay Marketing Assistance Loans (MAL) as part of the U.S. Department of Agriculture’s implementation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The loans now mature at 12 months rather than nine, and this flexibility is available for most commodities. Spring is the season when most producers have the biggest need for capital, and many may have or are considering putting commodities under loan. Extending the commodity loan maturity affords farmers more time to market their commodity and repay their loan at a later time

Eligible commodities include barley, chickpeas (small and large), corn, cotton (upland and extra-long staple), dry peas, grain sorghum, honey, lentils, mohair, oats, peanuts, rice (long and medium grain), soybeans, unshorn pelts, wheat, wool (graded and nongraded); and other oilseeds, including canola, crambe, flaxseed, mustard seed, rapeseed, safflower, sunflower seed, and sesame seed. Seed cotton and sugar are not eligible.

Read more at USDA