The Agricultural Bank of Egypt (ABE) and the Faiyum Sugar Works Company signed a cooperation protocol to finance sugar beet farmers in Fayoum governorate.
The protocol represents a tripartite cooperation between the Bank, the company, and beet farmers within the Bank’s endeavor to expand the financing of contract farming, which will be reflected in increasing crop productivity and increasing the incomes of small-scale farmers.
This also comes within the framework of the Bank’s efforts to achieve agricultural and rural development in all governorates. The bank aims to provide the necessary financing for agricultural production, support small-scale farmers, and contribute to supporting and financing strategic food industries to maximize their contribution to food security.
Ahmed Al-Ansari, Governor of Fayoum, praised the ABE’s contributions to achieve economic and societal development within the governorate, and the great role that the Bank plays in supporting the agricultural sector.
He stressed that the cooperation between the governorate and the Bank includes many areas, especially with regard to the development of the agricultural sector in the governorate in general, and encouraging farmers to switch to modern irrigation systems. He noted that the governorate is keen on benefitting from its capabilities in the agricultural, livestock and other sectors in cooperation with the Bank, to achieve development and generate real job opportunities for young people.
Alaa Farouk, the ABE Chairperson, said that the bank is making tremendous efforts to maximize its contribution to economic and social development in Fayoum. He added that the bank seeks to finance agricultural and livestock projects.
He explained that the cooperation protocol signed by the bank with the Faiyum Sugar Works Company comes within the framework of the bank’s endeavor to expand the financing of contract agriculture, with the aim of supporting small-scale farmers and improving their standard of living, as well as helping them face the high costs of production and crop service. The positive results will be seen in increased productivity.
He pointed out that the cooperation protocol represents a tripartite contract between the bank, farmers and the factory, according to which the bank grants the small-scale farmers the necessary financing to help them cultivate and serve their lands and crops, provided that the farmer supplies the crop that is grown to the factory, according to the specifications and standards set by the factory.
Salah Fathy, the Chairperson of Faiyum Sugar Works Company, said that the aim of signing this protocol is to encourage farmers to expand beet cultivation and increase the productivity, in addition to enhancing the capabilities of the Company within its objectives to modernize the factory’s equipment to double its productivity, especially that most of the company’s production is consumed locally and covers a large share of the needs of the Ministry of Supply.