The Agricultural Development (ADF) launched a new program for importing green feed through commercial banks, as one of the innovative programs offered by the fund to support the state’s trend to maintain local natural resources.
The program was designed to provide a guarantee from the ADF for the importers of green feed in order to help them obtain a documentary credit from local banks to participate in the partnership funding program. The program also stipulates that the documentary credit could be refunded when needed through a short-term Murabaha.
The program comes as part of a group of programs that support the fund’s clients who work as importers in the agricultural sector. These programs work to provide financial guarantees to their working capital. One of these programs also includes guaranteeing firewood importation to limit wrongful cutting of wood. Another is for guaranteeing importing agricultural requirements for the conversion operations of products that lack comparative advantages in KSA.
The ADF guarantee for green feed importation limits the expected deficit as a result of halting cultivating this kind of feed in KSA. The Ministry of Environment, Water and Agriculture plans to fully enforce this decision by 1440AH.The program help individuals and companies secure their green feed needs, supplementing the nutrition of their cattle in animal production projects. In conjunction with the provision of this product, the fund is also preparing to launch a funding program to support small-scale livestock breeders with operational loans.
This comes within ADF's efforts to develop rural areas and help overcome obstacles local products are facing while maintaining natural resources and enhancing food security.ADF calls upon those who would like to apply for the green feed funding guarantee to submit their applications on ADF’s e-portal through requesting the working capital service on this link:
https://eservices.adf.gov.sa