Piraeus Bank Contract Farming Program Qorus Banking Innovation Awards 2014

Contract Farming offered by Piraeus bank (PB) aims at coordinating and supporting contractual partnerships between Primary Agricultural Units and Commercial / Processing Enterprises in a closed-controlled eco-system, by means of the innovative mechanism of customized contract cards.

Contractual partnership has been a traditional international practice. However, in most cases in Greece, it has been implemented without efficient management and control, resulting in waste of recourses & liquidity, inefficient cash-flow planning and irrational loans’ use.

Contract Farming, based on PB’s significant knowhow in the agri-business, puts an end to these past practices and initiates a new era in the agricultural sector, building solid infrastructures for development and forming the Greek economy’s sustainable future.

Contract Farming is the first banking program in Greece that contributes to the rationalization of agricultural production by matching primary production with demand, and financing both sides at the right time, with customized tools. Moreover, it boosts the modernization of the transactional cycle, embracing the whole production–supply chain and undertaking payments’ administration. Through this program, PB supports the vital for Greek economy agricultural sector and contributes to the economic and social development.

Contract Farming development was initially driven by the growth prospects of the Greek agricultural sector that became more relevant in times of economic crisis. All related business areas were involved in the design and implementation of the program.

So far, 75 enterprises and 13.000 farmers have participated in Contract Farming. The total approved credit lines -to both commercial and productive units- amount to 400.000.000 €.