2009 - present
Supported with funds from the governments of Austria and the Netherlands
The goal of the project is to improve access to markets for Ukrainian
fruit and vegetable growers through supply chain development initiatives
with supermarkets and by facilitating investments in logistics
infrastructure. It helps increase product quality and thus the
competitiveness of local producers.
The Challenge
Fruit and vegetables are an important part of Ukrainian agriculture.
Traditionally in Ukraine these products have mostly been offered to
customers at open markets, but the situation is changing and retailers
such as supermarket chains are rapidly increasing their sales of fresh
fruit and vegetables. This leads to improved produce quality, as
products must be cleaned, sorted and packed properly. Most Ukrainian
producers cannot meet such requirements. Therefore about 70 percent of
fruit and 30 percent of vegetables in Ukrainian supermarkets are
imported. At the same time, 85 percent of Ukrainian fruit and vegetables
are still sold in open markets operated by a large number of dispersed
wholesalers and individual middlemen.
IFC Approach
The project focuses its activities not only in the target region of
Kherson, where fresh vegetable production is concentrated, but in the
entire Ukrainian fresh fruit and vegetable sector by:
- Forming a target group of selected Ukrainian fresh fruit and
vegetable sector stakeholders – retail chains, logistics operators,
traders and growers – to address the quality standards issue and to
facilitate interaction and information exchange for better planning.
- Enabling investment in post-harvesting and cold storage, which is the key factor for supply chain development, including:
- Increasing awareness of market players’ best practices in product handling storage;
- Working with financial institutions to raise their awareness of
the potential of the sector and possibly helping them structure
appropriate long-term financing to support investments in refrigeration
infrastructure;
- Supporting pilot investments into post-harvest operations and cold storage, and disseminating the experience.
Piloting a program with selected supermarkets to implement
quality standards, train personnel in product handling, and streamline
their supply. The results of the pilots will be shared with the players
and used as "lessons learnt" by other Ukrainian retailers.
Development results as of January 1, 2010
- Provided advice to 77 entities, seven of which received in-depth assistance
- Distributed 400 copies of project materials
- Conducted 15 workshops/training events for more than 280 participants
- Helped clients increase sale revenues by $10.9 million
- Helped 10 companies access investment/financing totaling $7.4 million.
For more information please contact: Ebbe Carl Vigen Johnson, Project Manager, EJohnson@ifc.org
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