Piraeus Bank and Missirian S.A. agree on contract farming with 1,000 tobacco farmers

In a core event held in the city of Serres, Messrs. Stavros Lekkakos, Managing Director & CEO of Piraeus Bank, and Christodoulos Antoniadis, Deputy Managing Director, accompanied by the Bank’s General Directors, Messrs. Ioannis Papadopoulos and Ioannis Sgourovassilakis as well as a team of senior officers of the Group presented the benefits of tobacco contract farming to over 800 producers from the prefectures of Serres, Drama and Pieria. They also announced the Bank’s collaboration with MISSIRIAN S.A., one of the largest companies of the industry in Greece and the Balkans with ample export activity.

The company, which is also active in the U.S., has recently signed a three-year strategic agreement with Philip Morris.

As explained by the speakers, the financing proposal for tobacco contract farming is essentially intended to help rationalise the organisation and support the entire production procedure, from farming to processing and distribution of products from the company’s facilities.

By means of contract farming, producers have all the necessary liquidity when needed, as well as guaranteed payment of the production that has been agreed to deliver to the company until the beginning of November every year. Moreover, Piraeus Bank covers producers with additional guarantees (apart from ELGA) in the event of production losses due to weather conditions and natural disasters.

The event was introduced by the Managing Director of MISSIRIAN S.A., Mr. Nicolaos Tzoumas, in the presence of the company’s Chairman Mr. Ago Missirian. The event was welcomed by the President of the Chamber of Serres, Mr. Christos Meglas.

As underscored by Mr. Lekkakos, the accumulated know-how of Piraeus Bank Group, which recently acquired ATEbank, can contribute substantially to transforming the primary sector into a development pillar of the Greek economy.

Mr. Antoniadis later talked about “trade rationalisation”, ensuring resources and liquidity for farmers. He also announced that over 30 large manufacturing businesses and cooperatives, operating in agriculture and animal breeding will be included in the Contract Farming system by the end of the year. Finally, concluding his speech, Mr. Antoniadis stressed that contract farming is dynamic and customisable to the specific features of each farming activity, noting that Piraeus Bank has taken into account all proposals made by those who were present at the event.

April 30, 2013.