Photo from UNIAN
PJSC State Food and Grain Corporation of Ukraine says the current year has proved to be the most successful in terms of the fight against corruption and an improvement in its financial results, Gazeta.ua reported citing Acting Board Chairman of the Corporation Borys Prykhodko as saying.
Prykhodko noted the Corporation had significantly tightened operating conditions for trade partners both on foreign and domestic markets. Offshore transactions are not allowed. The Corporation deals with reputable market players and carries out deliveries mainly on FOB Black Sea terms through its own grain elevators in Odesa and Mykolaiv.
"Since the beginning of the calendar year, exports of grain have amounted to more than 2.2 million tonnes worth $430 million. Funds have been transferred to the accounts in full," Prykhodko said.
He noted offshore transactions, which cost millions of funds in the past, had been prohibited.
Concerning the domestic market, the Corporation has canceled the prepayment system and agent-based schemes. The purchases of grain are carried out through its own network of sales representatives, with payments made only after the registration of deliveries at own elevators. As a result of such changes, 27 out of 70 suppliers have failed to comply with the requirements. It is noted that over 65,000 tonnes of grain was delivered under forward contracts, with UAH 110 million in proceeds received by farmers.
"We have made a difficult decision to tighten the selection and we have got results – suppliers have met 100% of their obligations, hryvnia-denominated receivables do not exist," Prykhodko said.
To optimize costs and reduce financial losses, State Food Corporation has launched a pilot project implemented by its own logistics service. The project envisages the introduction of an automated grain accounting system at the grain elevators. In addition, a pilot project in the sphere of commodity and materials supply system has been launched. A price monitoring committee has been set up, and a brokerage account has been opened to hedge price risks.
During this year, the Corporation has recovered UAH 47 million in prior periods' receivables. Additional UAH 30 million is planned to be collected by the end of the year.
"This year can be called one of the most successful ones in terms of the fighting against corruption. Although some previous schemes still exist, no one else will be able to send ships with grain worth $132 million to offshore companies. We are collaborating with law enforcement agencies to recover these funds and continue internal reforms," Prykhodko said, adding that the Corporation plans to hold competitions to hire directors of elevators and department heads.