USAID-backed Programs Work To Improve Profits and Distribution Channels for Farming Cooperative in Rural Ukraine
Through technical assistance and a grant, the cooperative was able to achieve increased production and contracted sales for over 100 tons of cucumbers in 2004, up from 30 tons in 2003.
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| Agricultural Marketing Project members present a sorting machine to the Executive Director of Sviatylivka cooperative, Tetiana Strashnenko |
Currently, the fruit and vegetable sector in Ukraine is comprised mainly of small plot farmers who depend on marketing their produce, including cucumbers in the fresh, local markets. Due to inefficiencies and the lack of funds, many of these small farmers face a constant uphill battle to make ends meet. With support from AMP and CNFA, USAID funded agricultural initiatives, a great number of these farmers have received technical, organizational, and marketing assistance. Some have received financial assistance as well.
In order to increase the marketing power of Ukrainian small farmers, AMP has been actively working to create new and develop existing cooperatives of small growers. One such cooperative in the village of Sviatylivka, Poltava Oblast has successfully worked with the project to increase incomes and form contracts with vegetable processors. This cooperative was originally formed with the assistance of CNFA and a viable partnership was developed with AMP to continue training of its members to be self sustaining in the future and to ensure the cooperative’s growth and productivity.
AMP’s cooperative development, along with agribusiness and marketing specialists, have worked closely with the Sviatylivka cooperative to build a leadership structure and board of directors, develop business and marketing plans, and hire an accountant as well as institute a financial system. Also, in accordance with the Project’s overall mission, the specialists have worked closely with the cooperative members and management to cultivate relationships between the cooperative and potential buyers throughout the region and oblast to create and implement supply contracts, explore new potential markets and products, and create planting and harvest plans to fulfill these contracts and meet market needs.
Additionally, AMP provides ongoing training and monitoring activities to assure the sustainability of the cooperative. As issues and needs are identified, specialists of the Project conduct ongoing project specific trainings to insure that the cooperative members are up to date and can remain competitive in their regional market. During these trainings, new ideas are discussed and instruction is give on certain topics. Also, AMP will monitor closely the progress of the cooperative to help steer it in the right direction and to assure that it continues to meet its financial obligations.
Included in its assistance, AMP awarded its first grant to the Sviatylivka cooperative in the form of a cucumber sorting machine in August 2004. The value of this grant was $5,000 with an in-kind contribution from the cooperative of $7,368. The machine sorts cucumbers according to size, thus allowing the cooperative members to increase efficiency whereas they had previously sorted by hand. It will also allow the cooperative to increase production in the future. Currently, they are shipping cucumbers to a Cherkasy processor at a rate of one truckload every two days. This number is expected to increase next year to 3 truckloads every two days with an increase in production.
The results of CNFA’s and AMP’s assistance are quite tangible. This year the cooperative has sold 102 tons of cucumbers with an estimated value of over $20,000 through contracts with processors as opposed to a total of 30 tons for the previous year. With AMP’s assistance, the membership of the cooperative has increased this year by 3 farmers to a total of 20. By years end, the cooperative expects to have 30 members. Under contract, each member of the cooperative has been able to lock in higher sales prices and have already received higher profits than the previous year. Also, with the new equipment provided under the AMP grant, the cooperative has been able to charge for sorting cucumbers from non-members from within and without the village. Finally, the cooperative is looking to diversify their production with plans to grow and sell 50 tons of potatoes under favorable prices.
Without these people, nothing would have happened. First came CNFA who explained the basics of western agricultural cooperatives. Then AMP arrived which literally gave hope to us. Now we have an opportunity to produce and supply a better quality product.”
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