Demetra Trading (a member of Demetra-Holding) has made seasonal contracts for 2.3 million tons of grain in the current agricultural year (July 2024 – June 2025) showing a 1.9-fold increase compared to the previous agricultural season. Such contracts are expected to account for more than 15% of the company’s total purchases.
Seasonal contracts were first introduced at Demetra Trading in the 2021/2022 season, when 200 thousand tons of grain were contracted. The number of contracts experienced a 6-fold increase to 1.2 million tons in the following agricultural year (2022/2023).
Currently, seasonal contracts cover 14 Russian regions, including Tambov, Rostov, Kursk, Oryol and Tula regions. The largest shipments are carried out by Izberdeevskiy elevator (Petrovskoye village, Tambov region), Yugo-Vostochnaya Agrogruppa (Southeastern Agrogroup) and Rusagro companies.
Roman Kron, Managing Director of Demetra Trading:
“Seasonal contracts are a reliable distribution channel for suppliers, which enables obtaining the necessary financial resources for operational or investment activities at the right time. For us, it is a source of liquidity that provides predictable grain volumes for our operations. This is why I am sure this tool will be in demand by both parties in the future. The contracted volumes will increase, and the geography of contracts will expand."
A seasonal contract is an agreement for the upcoming season, which sets out a preliminary delivery schedule. The cost of grain is determined in accordance with market indicators, and agricultural producers can choose the right moment to fix the price: before or after the shipment of the weekly batch.
