July 26 2011, 12:55 Fruit-Inform

Do Ukraine need a network of wholesale markets?

“In 2011-2012 the considerable part of Ukraine will be covered with a network of wholesale markets for agricultural produce and vegetable storehouses”, Mykova Azarov, Prime Minister of Ukraine, was quoted as saying during his working trip to Stolychnyi Wholesale Market in Kiev. He thinks that wholesale markets will enable to supply consumers with products at producers' prices.

According to Fruit-Inform Project, such an aim is praiseworthy, but contains a slight overstatement. “According to our estimates, wholesale markets may increase the efficiency of trade and decrease losses that will lead to 10-15% reduction of retail prices for certain products. However, wholesale markets are not necessary to be constructed everywhere, and they will not be able to work successfully everywhere”, Tetiana Getman, Head of Fruit-Inform Project, thinks. “Many things in development and performance of the market depend on management quality and availability of enough number of buyers in immediate proximity to the market throughout the year. Therefore, we think that construction of wholesale markets near the cities with poorly developed HoReCa segment and population lower than 700-800 thous. people will be unreasonable”, Mrs. Getman adds.