Agreement paves way for farmers to access loans

PEOPLE in East Sepik will soon be able to borrow money from the People’s Micro Bank Ltd (PMBL) to raise chickens for the Sepik chicken, grain and cocoa innovation project.
This was according to Yangoru-Saussia Development Authority (YSDDA) chief executive Jacob Yafai following the signing of an agreement with the bank on Friday.
Under the terms of the agreement, Yafai said the district would invest K1 million for the chicken outgrower programme.
He said first 11 people in the project area would be the first to borrow.
“The YSDDA and its partners, the People’s Micro Bank Ltd and the Sepik Agro Industries Centre Ltd (Sepik AIC) signed a memorandum of agreement to set up and operate the Kakaruk credit scheme for the people of Yangoru-Saussia,” Yafai said.
Farmers can borrow a minimum of K5,000 to a maximum of K100,000 under the scheme with the maximum term of repayment three years.
“The Sepik AIC will be making the loan repayments on behalf of the farmers every six weeks from the proceeds of the sale of their chicken,” he said.
“Net profit margin for the chicken outgrower business will be K3 per bird.
“Up to the half of the profit from every sale will be used to service the loan repayment while farmers will benefit from the other half.
“Grace period for the commencement of loan repayment will be three months from the date of loan drawdown.”
The Sepik chicken, grain and cocoa innovation project is into the production phase.
First phase was egg production.
This will be followed by production of day-old-chicks and broiler production beginning next year.