Information for fruit and vegetables business in CIS
Start conditions for wholesale produce market set-up are better in Ukraine than in Poland
On October 11th 2005 World Bank specialists met with the investors, government representatives and leading experts of Ukrainian produce business, and also the experts of the Agricultural Marketing Project. The specialists' opinion sounded as that start opportunities for wholesale produce market set-up are better in Ukraine than in Poland. Well-organized wholesale trade for fresh vegetables, fruits and berries is practically absent in the country, so there is a great need for the infrastructural facilities of the kind in Ukraine.
As it was said by Anatoliy Rozgon, the Director, Agricultural Market Formation and Functioning Department, the Ministry of Agriculture of Ukraine, 598 wholesale markets are functioning now in the country, according to the data of the official statistics; still the really well-organized wholesale trade is factually absent. The dynamically developing Shuvar market in Lviv is probably the most efficient and modern wholesale market in the country. As the market director said, they considered all the mistakes done by wholesale markets in Poland and other countries of Central and Western Europe. Moreover, Shuvar market achieved more regarding the development of the wholesale market. It is planned to transform it into a powerful regional agrarian center, and also to create here the logistic platforms for huge wholesale market players.
Citing Jacek Austen, the Director of Gdansk wholesale produce market, "if Ukraine does not start to develop a chain of wholesale produce markets soon, large international wholesale markets will come into play and with the great probability monopolize fruit and vegetable trade". Such situation, to Mr. Austen's opinion, may influence negatively the profitability of fruit and vegetable production. As he said, wholesale produce markets are as good roads for the country, which are of vital necessity for trade and business progress.
At the present moment, besides Shuvar market, there are several private investors in Ukraine ready to allocate money for wholesale market construction and development. An average investment for a modern wholesale market with the developed infrastructure is evaluated by experts to be USD 20-30 mln. Ukrainian government supports an idea too, so that an active cooperation with World Bank continues to be focused on soft target loans for this infrastructure development. Large cities should be also interested to set up wholesale markets, cause it means very serious sources of revenues; plus the question of cheap vegetable, fruit and berry supply to the city may be solved.
The second session of the the second international conference "Fruits and Vegetables of Ukraine 2005" will be dedicated to the wholesale produce markets development and wholesale trade in the whole. This event, by the way sponsored by Shuvar market, will be held on December 5th-7th 2005 in the National Complex Exposenter Ukrainy; the leading experts of produce market from Ukraine, Russia, Moldova, Georgia, Poland and other countries will participate in the conference. About 400 specialists from 20 world countries are expected to take part in the event.