November 25 2005, 11:01 Agrarian Marketing Project

Another Cannery to be Launched in Zakarpattya

There are plans to open a new cannery in the village of Muzhievo, Beregovo rayon, Zakarpattya oblast in the summer of 2006. According to information given to the Agricultural Marketing Project from Stepan Revak the facility's director, planned capacity is to be 20 million standard cans. This enterprise has the potential to become a leader in the oblsts' canning industry. Canned sweet corn and green peas will constitute the main production. Enterprise management is presently negotiating with farmers to form raw materials zones and determine supply and loan terms. Trademark of the enterprise is also under development.

Zakarpattya oblast is densely populated with canneries and it becomes more and more difficult to find raw materials according to Lyudmila Dzyamko, Market Information Specialist of Zakarpattya AMP office. In 2005 processing capacities increased by 50% in the oblast. This was largely due to the fact that Mikaland enterprise started working in 2005, and Univer and Corado Canning Inc. companies doubled their capacities. The plants compete in the raw material market and insufficient produce supplies often lead to price increases and plant failures.

It is interesting to note that new cannery plans to purchase green peas and sweet corn from the local producers and to organize its own green pea production. Some Zakarpattya canneries are already canning these crops, but the major part of raw materials is supplied from abroad.