1. EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agri-Logistics: Issues and Challenges in Ukraine John Millns Thursday 16 th September 2010

2. EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agri-Logistics Issues and Challenges in Ukraine Agri-logistics are the operational aspects of the supply chain including: Focusing on a goal linking production, processing, distribution and the market place in such a way that customers are serviced at higher levels and yet at total lower cost Packaging, materials handling, transport and distribution activities from farm to consumer Agricultural products are living organisms Agricultural products are all different (livestock or fruit?) Improving the chain requires knowing every component of that specific chain and focusing on continuous improvement

3. EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agri-Logistics Issues and Challenges in Ukraine Food Safety – (HACCP) Food Quality – Knowing your market and the consumer perception of the right product, right place, right time and right price Extensive production/harvest and post harvest technologies available for all agricultural products Focusing on specific value chains, knowing your particular competitive strengths and adding value at all levels Having effective research and extension support (public and private) Effectively communicating, obtaining and using information Improving gross margins/efficiency and reducing losses Preparing effective plans and setting measurable targets

4. EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agri-Logistics Issues and Challenges in Ukraine Country and Product Branding Danish Bacon Israel “Jaffa” Orange Chile Wine Thailand Shrimps Kenya flowers World Agri-Logistics increasingly large, commercial multinational and centralised around “hubs” Increasing dominance of international retailers and wholesale logistics centres Locally a greater focus on niche/speciality/geographical origin and brand markets Brazil Orange Juice/Sugar/Poultry/ Coffee/Beef

5. EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agri-Logistics Issues and Challenges in Ukraine Some positives?: Quality and extensive productive land Proximity to European, former Soviet and middle eastern markets Relatively cheap and available labour Increasing number of chain leaders (Danone/Chumak/Sandora /Billa etc.) Potential for considerable yield increases Range of opportunities for higher out of season prices Some negatives?: Lack of focus on markets and added value Availability of post harvest technologies Farm structure Research and extension Availability of finance Communications/networks and information Basic infrastructure Permits Public/private partnerships Bureaucracy/corruption/rule of laws General external perception of Ukraine

6. EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agri-Logistics Issues and Challenges in Ukraine Building supply chains Focusing, Building on strengths, Knowing the chain and market changes/trends, Using chain leaders Improving chain competence Continually improving at every level in the chain, Working in partnerships, Setting targets, Using appropriate technologies Developing cross border chains Making contacts, Developing trust, Being committed, Using international standards and best practices, Thinking “long term” Improving supply chain management Focusing on standards and enforcement, Planning and controlling (costs and logistics/tracking), Using supply chain management tools

7. EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agri-Logistics Issues and Challenges in Ukraine The role of Government Clear and facilitatory policies (consistent and long term), Focusing on value chains, Ensuring proper communication /transport infrastructure, Encouraging investments, Ensuring the rule of law. enabling a level playing field for fair competition, Establishing a commercial code (property rights/fair and speedy judicial processes for disputes) Public-private partnerships Developing and encouraging international best practices, Focusing on clear outputs and “strategic interests (commitments on both sides), Open platforms for public/private information exchange, Promoting Ukrainian food Institution building and raising awareness Seminars/workshop on specific chains, Focused research and extension