May 29 2006, 12:37

Agricultural Marketing Project opened modern cooling and storing center on the basis of Zakarpattya Producers Association in Iza village, Khust rayon, Zakarpattya oblast

As for early 2006 there is no storage center in Zakarpattya with modern equipment at all. Certainly, the farmers-producers do not possess the produce storage center. The excessive volumes of vegetables are supplied on market in peak of harvesting season; vegetable shortage is observed on market off-season, and Ukrainians got used to it. Vegetables are sold for nothing in summer; the prices are extremely high in winter even for relatively low quality vegetables.

Specialized modern storage with cooling equipment is one of the solutions to this problem. Winter and spring confirm this opinion fully, as there are cucumbers, tomatoes, apples and potato imported from abroad, often illegally, to the oblast market. During the mentioned period vegetable and fruit prices are quite high, sometimes they are 10 times as high comparing to the prices during production season. The period of intensive trade starts early May; the sales volumes increase and reach their peak in August-October. Then, in December the sales start declining.

Trying to extend the sales season for produce commodities grown by the farmers - members of Zakarpattya Producers Association, its founders and board decided to buy premises and construct a cold storage of 100 tons capacity. There are plans to install cooling equipment there and equip lines for post harvest handling: produce packing and sorting in particular. The nearly whole assortment of vegetables common for local producers is expected to be stored by Zakarpattya Producers Association.

On the 25th of May 2006 an official ceremony of cold storage equipment dedication was held in vegetable storage of Zakarpattya Producers Association. The officials of Khust rayon, Zakarpattya State Administration, and the Director of the Agricultural Marketing Project participated in the event. The storage was opened due to Grant Program of the Agricultural Marketing Project in Ukraine. New facility let the members of Producers' Association substantially increase their profits via stable supplies of high-quality vegetables for attractive prices to all interested market players (wholesale companies, supermarkets) in Zakarpattya and other oblasts of Ukraine.

Alexander Koval, the Zakarpattya Marketing Specialist of the Agricultural Marketing Project, said that the objective of grant project is to provide Association members with the modern professional center for produce cooling, post harvest handling, storage and sales, and also to secure stable fruit and vegetable supplies to market. One of the main problems faced by farmers is the absence of conditions for produce storage and for sales season extension, which can potentially increase farmers' profits.

Due to the support provided by the specialists of the Agricultural Marketing Project, via AMP Grant program, and mainly thanks to farmers' commitment all members of Association will have a significant advantage meeting rigid requirements at supermarkets which require high vegetable quality and stable supplies during the whole year.

Maria Oros, the Leader of OROS farm, the member of Zakarpattya Producers' Association, participated in the study tour to Moldova in 2004 due to AMP support. She saw there local farmers who actively use modern storage technologies for vegetables, apply post harvest handling practices and supply vegetables to the supermarkets for high prices. Back home, she suggested the colleagues to join efforts in order to develop association. They together prepared the business-plan for participation in Grant competition conducted by AMP. The Association convinced Grant Commission in their serious intentions and the perspectives of this project. Grant reimbursed only 30% of expenses for vegetable storage construction, the rest of expenses were covered by the members of Zakarpattya Producers Association.

So, now the farmers - members of Zakarpattya Producers Association hope to increase their profits minimum 20% this year securing the further sustainable growth for the joint business. It also means new jobs and the improvement of rural population incomes.