Kiev, Ukraine, January 20, 2014
—IFC, a member of the World Bank Group, is partnering with Ag Growth International (AGI) to bring new grain storage technologies to Ukraine’s agricultural sector, helping small and medium-sized producers reduce losses and contributing to global food security.
IFC and AGI, a leading producer of grain handling, storage, and conditioning equipment, will develop and roll out a nationwide education campaign on new technologies for post-harvest grain storage. The technologies will also be tested at pilot farms in different Ukrainian regions. At a later stage, the campaign will launch new financial products to improve farmers’ access to finance.
“In North America, most grain farms consider an acceptable level of loss due to spoilage to be less than one percent,” said Gary Anderson, President and CEO of AGI. “We see many farms in other parts of the world regularly lose 15 percent or more due to improper storage or a lack of storage. That is a direct hit to the bottom line of the farm, and can be the difference between being a viable business or not. We are excited about teaming up with IFC, leveraging our knowledge and experience in other markets to the benefit of Ukrainian producers.”
Rufat Alimardanov, IFC’s regional head for Ukraine and Belarus, said: “Ukraine is already a leading grain exporter but the potential is so much greater. Due to the underdeveloped storage infrastructure and limited access to finance, farmers here lose around 8 million tons of grain a year. Through our advisory program and pilot projects with agro companies, we want to create best practice examples that the entire sector can replicate."
The initiative is part of a broader IFC advisory program, Sustainable Development of Small and Medium-Sized Farms in Ukraine. Under the program, IFC works with market participants to make innovative technologies and high-tech solutions available to small and medium-scale farmers. Bayer is a key private sector partner for the program. It provides farmers with broader access to agricultural knowledge, technologies and agricultural inputs such as improved seeds and innovative crop protection solutions.
IFC launched the six-year advisory project last year in partnership with the Austrian Ministry of Finance.
IFC supports the entire agriculture and food value chain, from farm production to collection, processing and distribution, and has already invested over $800 million in Ukraine agribusiness.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit