Executive Director of the First Ukrainian Agricultural Cooperative (FUAC) Oleksandr Buyukli in an interview with Agravery.com described the goals, the history of the creation and development of the cooperative, the attraction of funding from domestic and international partners, and the level of development of the cooperative movement in Ukraine.

Tell us about the "FUAC" cooperative: when was it created, which goals are pursued?

- The idea of ​​creation of the FUAC was born in the framework of the Ukrainian Agricultural Council, which brings together small and medium-sized agricultural producers. One of our major issues is the pressure from the big market operators. Individual farms for them are not essential. Just think, TOP-10 grain traders make up 60% of domestic grain exports, the top 10 fertilizer market operators provide 40% of demand. At the same time, 52 thousand enterprises occupy grain production. So who dictates the rules?

Realizing our position on the market, we realized that we to be heard. In 2016, we tried to declare ourselves by knocking down the consolidated batch of grain. The operation was successful - we received bonuses for the amount of the party. So, already in early 2017, we created a cooperative that allows small farms to combine their efforts and obtain benefits available to agroholdings. In addition, another important direction of the cooperative's work is the consolidated procurement of fertilizers in large batches.

How many enterprises are part of the cooperative?

- Currently, the cooperative consists of 69 participants. It should be noted that the end of last year, the FUAC united 61 enterprises. The total land bank of the cooperative since last year has grown by 10 thousand hectares and now is about 200 thousand hectares. Our members are located in 12 regions of Ukraine.

That is, the dynamics are positive - farmers see the benefits that co-operation opens to them, so I am confident that the number of our members will only grow in the future.

What volume of crop was the cooperative implemented in 2017? Do you plan to double this figure by 2018?

- In 2017 the cooperative sold about 90 thousand tons of grain and oilseeds - the figure is not large, but in 2018 we plan to double this result.

Do you have access to funding from Ukrainian banks?

- Yes, today we already have access to lending from the Ukrainian bank "Credit Dnepr". We eill use the recieved funds to increase the volume of grain trade and to conclude contracts for the consolidated purchase of mineral fertilizers. By the end of this year, the total amount of financing can amount to USD 50 million. Attracting investments will increase the profitability and efficiency of our participants.

And what about your cooperation with international organizations and financial institutions? Previously, you reported that the Netherlands bank Rabobank, with EBRD support, is exploring the possibility of investing in FUAC…

- Currently, we are negotiating with Rabobank and the EBRD to attract investments for the construction of a soybean processing plant and linear elevators. The estimated volume of investments is about 10 million euros.

What, in your opinion, are the main achievements of the cooperative since the beginning of this year?

- Due to the fact that the government is pursuing a policy aimed at limiting the import of Russian fertilizers, we, as a cooperative, found the opportunity to conclude the first contracts with producers from the European Union. Thus, now our participants can provide themselves with affordable and high quality mineral fertilizers, while saving savings in the range of 5-10%.

Could a farm with a 300 hectares land bank conclude such a contract with a foreign partner?

- No, because it is a constant cost, which lies in the volume of production. And the cooperative gives him such an opportunity. And this is really a big step forward and an excuse for pride.

How much Cooperative Movement is developed in Ukraine compared to other countries? What benefits will our state receive from the development of this direction?

- Cooperation will promote the development of the Ukrainian agrarian sector. After all, in the end, thanks to the association of cooperatives, small-scale producers can reduce the cost of grown products, which makes it possible to compete with agroholding.

However, in Ukraine this direction is still at the stage of formation. If in the USA the participation of cooperatives in production is about 95%, then in Ukraine - only 2%. Therefore, our state still needs to go a long way to revive the cooperative movement. But we are precisely moving in the right direction.

What hinders the development of cooperation in Ukraine? How to improve the current legislation?

- Ukrainian legislation must be brought into line with the principles of the work of the cooperative movement in the world. It is important to understand that the main goal of the cooperative is to create conditions for increasing the efficiency of business conduct of cooperative members, which will give them the opportunity to maximize profits.

Legislation in force in Ukraine introduces an artificial division of cooperatives into production and service. Members of the production cooperative can be solely individuals. They can not buy and sell products and services to each other. In addition, cooperatives are deprived of the right to receive and distribute profits.

At the same time, in the world practice, the members of the cooperative are legal entities. The cooperative purchases products from them and provides them with everything necessary for agricultural production. The cooperative financial result is distributing among the members in proportion to the turnover made with each of them. This is called patronage dividends. But without legislative changes in Ukraine, such a scheme can not work.

Appropriate legislative initiatives have been developed and introduced into parliament. We hope that in the end they will be adopted, and the cooperative movement in Ukraine will finally reach a new level of development.