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Syngenta introduces smarter price support for SA growers

News Snippets
16.11.2018

Syngenta introduces smarter price support for SA growers

 


Syngenta introduces AgriBoostTM - a smart commodity price support initiative for commercial growers. This ground-breaking offering is part of Syngenta’s value-adding financial solutions that support growers in an uncertain and challenging agricultural environment. 

 

Syngenta has replaced its risk protection offer, AgriSafeTM with AgriBoostTM - a new proposition which gives growers more options and smarter price support.

 

“Everything we learnt with AgriSafeTM has been applied to the AgriBoostTM offering,” says Stefan van Zyl, business solutions manager at Syngenta. “We are improving on what was an already successful model by giving our growers the option to choose how they want to benefit from market volatility.”

 

With AgriSafeTM, the value of a grower’s Syngenta purchases (expressed in tons) was hedged at the ruling SAFEX maize price on a predetermined day. When the SAFEX maize price fell below the set protection price, the grower received a cash pay-out from Syngenta.

 

The same principle still applies to AgriBoostTM but with an important difference: growers can now choose whether they want to benefit from an increase, a decrease or a combination of both in the SAFEX maize price.

 

The pay-out from Syngenta is based on the value of the grower’s Syngenta product purchases, SAFEX maize price and future option premiums on the trading day. Depending on the degree to which the market moves up or down, the grower receives a cash pay-out according to his assigned pay-out ratio and selected benefit option.

 

“In a nutshell, AgriBoostTM is a smart way to boost your Syngenta purchases,” says van Zyl. “When you buy our products, we offer you the option to receive a percentage of your purchase value back in cash when market volatility is high.”

 

All growers who have committed to buying Syngenta products between 1 March 2018 and 28 February 2019 are eligible to participate in AgriBoostTM. There are no additional costs involved, but a few conditions apply.

 

Since launching AgriSafeTM in 2012, Syngenta has put a total of R87 million back into the pockets of growers. Growers that participated in the programme received up to 21% of their purchase value back in cash during years when commodity prices decreased significantly.

 

“Commodity markets are notoriously volatile, and even more so in the agricultural sector where completely unpredictable factors, such as the weather, influence the outcomes of a season,” says Abraham Vermeulen, managing director of Syngenta South Africa. “AgriBoostTM is set to continue the trend of delivering tangible value. It cements Syngenta’s reputation as a smart partner that offers smart choices, enabling smart farming to become a reality for every grower.”