Small producers require more credits

Pastoralists in Dominican Republic receive little funding on the part of the commercial banks which argue that this sector is very risky for the granting of funding.

However, the agricultural Bank, which is the entity to finance field, also has its demands in evaluating their clients.

Small producers have to juggle to get some credit in the official entity and others, which are organized in associations, have managed financings of private with guarantee of support banking international.

"You can count on the fingers commercial banks which lend to the producers", said Ambiorix Cabrera, President of the Association of small and medium-sized poultry producers to Moca and Licey (Apromoli), who stated that he has always been very difficult for farmers to get credit in the Bagrícola and other banks in the country, because u000aThey argue that this is a very risky sector for financing.

"The financing announced authorities to single producers exist in the world of them, or them will be two or three," said Cabrera after point out that this sector is not taken into account by those who provide financing of production.

He explained that if it were not for the international, suppliers who are responsible for small development that have taken place in the areas of chickens, eggs and pigs, in this country would not exist food in this line.

Coffee
"In my case, the production have in society with my children because they are professionals and make contributions to production because financing normally made by the agricultural Bank in the last year, was not possible to get it", it said Rufino Herrera, who is a producer of 80 tasks of coffee.

Herrera explained that it is currently in a process of renewal u000aabout 25 tasks within his estate, which has required an investment of RD$ 95,000, which were contributed by him and their children with the aim of increasing production.

Considered that with the renewal of plantations, in five years could pay for the investment and generate around RD$ 125,000 annually.

About the possibilities of exploring financial facilities with other banks, Herrera said he has been in talks with Banco Ademi, although still there is nothing concrete. But he added that the financing offered by commercial banks are usually short-term and not allow producers to fully develop the process requiring the plantations.

Cocoa
small cocoa producers have an agreement with Banco Ademi, through which the members of the National Confederation of cocoa producers (Conacado) may choose to not older than RD credits $250,000 with rates u000athat from 14% to 21% to improve the quality and increase the production of this item. Although every producer is responsible for loans taking, Conacado is in charge, explained its executive director, Isidore a. Rosa, charging each member share to be paid to the Banco Ademi by concept of the financing of production.

De la Rosa reported that Ademi has already delivered around RD$ 130 million per financing small producers of cocoa, a Fund of RD$ 500 million intended for these purposes.

He said that so far small producers have presented a good management of the resources that have received funding, what has been shown with the improvement of farms and the increase in the production.

Plants
Eugenio Núñez, producer of vegetables in greenhouses and open field, said so far you have been satisfied with the services of funding to u000aprovides the Bagrícola and the only drawback is that the interest rate should be 12% down for the producers

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Financing A farmers
"financing not have been flowing properly, because agricultural Bank practically has rebelled against the resources that it established by law and is dealing with them at will", said Eric Rivero, President of the National Association of producers of milk (Aproleche), to mention that this is the only lending facility for quick access to small producers with a 10% interest rate

He explained that small producers have no access to other types of loans offered by the official entity with interest rates that exceed 18%.

The producer expressed that farmers do not normally use financing from commercial banks and that the loans they have with the Bágricola them have been paying normal.

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