Stjepan Tanic Agribusiness and Infrastructure Officer Subregional Office for Central and Eastern Europe Annual meeting 2006 Round Table 2 Ukraine: IFIs/donors’ interventions to support agriculture Examples of FAO assistance

FAO membership since 2003 – TCP projects – Capacity building through: Case studies and reviews In-country capacity building Participation in stakeholder workshops – Potential to support infrastructure, ago- industries and agribusiness development

TCP projects Support to the formulation of a medium-term agricultural and rural policy framework Support the Ministry of Agrarian Policy in the analysis of different sub-sectors and socio-economic groups in order to identify constraints for agricultural and rural development; Based on the results of the above, recommend specific policy measures and instruments to address these issues and a coherent medium term policy framework; Strengthen national capacity in technical aspects of agricultural policy.

TCP projects Strengthening the Ukrainian laboratory for quality and safety of food and agricultural products provide on-site technical advice in planning and organizing the new Ukrainian Laboratory for Quality and Safety of Food and Agricultural Products; provide assistance in preparation for accreditation of this laboratory according to ISO through seminars and specific advice, involving a suitable accreditation body; build capacities of laboratory technical staff in specific advanced analytical techniques.

Case studies and reviews Commercial Farming, Agribusiness and Rural Enterprise Development in Ukraine – Case study o Appraisal of specific support programmes, policies and approaches to development of commercial farming and agribusiness enterprises, focusing on driving factors, adaptive capacity and requirements for successful and sustainable agriculture based rural enterprise development. Country Review on the Status of Harmonization of National Food Quality Systems with International Standards o Status of harmonization of national food quality control systems, with the view to identify issues and constraints to domestic and international market access resulting from the lack of compliance with international agricultural and food quality standards.

In-country capacity building Seminar on integration with European Economy and Market Reforms - Challenges for Agriculture and Rural Development (2005) Review experience of reforms and structural adjustment in CEE agriculture and rural sector, as relevant for the process of integration with the European economy; Increase awareness of policy issues and commitments stemming from harmonization of national legislation and agricultural policy instruments with the EU- modelled policies, institutions, regulations and standards.

In-country capacity building Seminar themes Agricultural sector in market integration process; Capacity building and institutions for implementation farm support and market regulation policies; Capacity building and establishment of national institutions in areas of food quality and safety standards and animal health; Building capacity and institutions for harmonization of national agriculture and rural development policies at regional and local level; Capacity building and establishment of national institutions in area of Farm Data Systems.

Stakeholder workshops Farm Commercialisation and Rural Enterprise Development in Selected CIS Countries (2004) Trends and Issues in Commercial Farming, Agribusiness and Rural Enterprise Development - Experiences from Selected Central and Eastern European Countries (2005) Appraisal of specific approaches to farm commercialisation agribusiness and rural enterprise development, contribution to capacity building for the design and implementation of support programmes and policies, and improvement of the information exchange on best practices

Stakeholder workshops Findings Present policy preference is for strong intervention by the state in agricultural production; Commercialisation and diversification is practically unknown to policy makers; Positive experience of numerous donors’ projects successful and community and village level, is not absorbed by government agricultural agencies; Vertical integration and agri-food chain concentration, the growing importance of economies of scale and the de-commoditization trend lead to emerging policy issues about the future of small farmers in agricultural economy.

Stakeholder workshops Priority areas impacting farm commercialisation agribusiness and rural enterprise development Policies and institutions Rural finance services Access to market and rural enterprise development Cooperative and community development Rural infrastructure, services and linkages

Stakeholder workshops Issues and constraints Inadequate strategies and planning for agricultural development at the government level; Farms and SMEs not represented at the national level; Range of financial services and better geographical coverage of service providers; Inadequate capacity and lack of skills of lenders and borrowers; Quality management and control systems; Market information, market analysis and appraisal, inadequate market research and promotion;

Stakeholder workshops Issues and constraints Credibility in contracts with producers and processors; Individuals and organizations have no experience of community activities; Rural communities facing depopulation, especially amongst young people; Competency of advisory services for rural business development; Weak infrastructure for marketing and distribution; Inadequate rural infrastructure: roads, communication, social services.

Potential to support infrastructure, ago-industries and agribusiness development Assessment of existing infrastructural capacity and strategies for its efficient utilization; Strategies and reforms to encourage public-private partnership; Value chain and market appraisal studies to improve value addition and profitability; Information and technical assistance on design, selection, operation and management of post- production facilities and services;

Potential to support infrastructure, ago-industries and agribusiness development Capacity building to improve the managerial, marketing, financial management and entrepreneurial skills of farmers, traders, processors and agribusiness managers; Strengthen capacities of service providers, CSOs, and local authorities to provide business-related services and serve as intermediaries in farmer-market- agribusiness linkages; Development of financial services and technologies for producers and agro-enterprises – MicroBanker – Rural Finance Learning Centre

Thank you!