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Kiev, Ukraine, October 6, 2011
—IFC, a member of the World Bank Group, is supporting the establishment of Ukraine’s first cooperative of fruit producers in the Vinnitsa region to help local farmers improve their competitiveness, bring in new investment, and increase their presence in global markets.
The new cooperative, “Our Fruits,” represents the majority of the sector in the Vinnitsa region, and will focus on opening large new markets for Ukrainian farmers. It will build on the expertise of IFC’s Vinnitsa Fruit Supply Chain Development Project, which has been working with producers, suppliers and banks to help strengthen supply chains in the fruit industry. IFC launched the project five years ago, in partnership with the Austrian Ministry of Finance.
“Over the last five years, thanks to the effective work of IFC’s project, Vinnitsa Oblast has doubled its output to become the national leader in production of apples and other fruits,” said Vasyl Cherniy, deputy head of the Vinnitsa regional administration. “Thanks to the increase in production of fruits and berries, new jobs are being created in the region, which also helps improve the standard of living in rural areas.”
During its implementation, the project has scored several successes. Farmers’ revenue increased by more than $16.5 million, and the increased productivity helped support $38 million in investments to the sector. The Vinnitsa region now accounts for nearly half of Ukraine’s total commercial apple production, up from 25 percent five years ago. The project also has enabled nearly $5 million in new bank lending to farmers, and has trained over 2,500 farmers to improve their farming practices.
“We have invested around $500 million in various projects in the agribusiness sector here, and are committed to continuing our work to help Ukrainian farmers overcome key constraints, such as lack of financing,” said Ivan Ivanov, Senior Agribusiness Specialist for IFC’s Sustainable Business Advisory Services.
Ukraine is a world-leading agricultural producer thanks to such natural advantages as geographical location, land, and climate conditions, and IFC supports the entire value chain in agribusiness, from farm production to collection, processing, and distribution. IFC also offers an extensive advisory program, including projects focused on developing the agro-insurance market in Ukraine, and on improving food safety standards.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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