Prime Minister Azarov said on April 5, that he expects Oblast governors to support the development of Fruit and Vegatable Wholesale Markets. Currently Lviv, Kharkiv and Kherson Oblasts have the most active genuine wholesale markets, but construction is underway near Kyiv to complete a 140 hectare wholesale market. As a regional and national network of markets appears it will likely have a dramatic impact on Ukraine’s agricultural and food business. For one we expect that the level of waste and lost fruit and vegetable production will fall from the near 40% currently because small producers have no place to sell their production. We also expect that total fruit and vegetable production will start increasing. Second being able to access local product will allow processors, retailers and restaurants to lower prices to consumers as they will be able to avoid imported products. Third we expect that this will trigger greater competition amongst input suppliers and lead to development of intermediary companies. The full effect of this market development will likely be felt in 3 to 5 years, but in our estimate this should signal investor interest.

UkrAgroConsult