FNB - The Agricultural sector set to benefit from the 2010 FIFA World Cup

The agricultural industry will play a vital role in the success of the 2010 World Cup™ as thousands of soccer fans and tourists are expected to consume tons of food and diary products during the 33 day soccer spectacle.

An estimated 400 000 soccer fans are expected to visit South Africa during the tournament, 50 000 of whom are expected to come from other parts of Africa. This is in addition to the more than 120 000 domestic tourists and soccer fans that will travel to the nine host cities and other leisure destinations.

Tourism is projected to increase by 3,1% to 11,8-million tourists by 2010, resulting in an extra R9,3bn boost to the economy.

First National Bank (FNB), which has a 34% market share in the agricultural sector, is committed to help farmers beyond 2010. FNB is the Official National Supporter of the 2010 FIFA World Cup™.

Louis van der Merwe, Head of Agriculture at FNB Commercial, says the bank has a number of specialised financial services and solutions to meet the dynamic requirements of the agricultural sector.

"Our services to the agricultural sector extend beyond farmers to agribusiness. FNB has a proven track record in the business and commercial markets, and by combining this with our agricultural financing expertise, we are able to provide a much-needed service to the businesses closely associated with agriculture.

"These include production input suppliers, notably the agricultural co-operatives, as well as the processors of agricultural produce and the associated logistics companies," says Van der Merwe.

To provide for payments, FNB has a series of dedicated cheque accounts, which also facilitate overdrafts to finance short-term cash flow requirements and production finance.

Agricultural loans can be used to purchase farmland and finance capital improvements, or to establish specific enterprises such as orchards or piggeries. Agricultural loans have variable terms and flexible repayment periods.

For a number of commodities, FNB provides contract financing so that clients can access production finance, guaranteed prices, comprehensive insurance and a market for their physical product. Risk management is provided for by dedicated and general insurance products.

Article source: First National Bank

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