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Mykola Hrytsenko 17 March 2011, Kyiv Creating a reliable supply chain.

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Presentation on theme: "Mykola Hrytsenko 17 March 2011, Kyiv Creating a reliable supply chain."— Presentation transcript:

1 Mykola Hrytsenko 17 March 2011, Kyiv Creating a reliable supply chain

2 The formation of civilized transparent channels of promotion of agricultural products from producer to final consumer on advantageous conditions for all participants remains one of the most urgent problems in Ukraine. Today, non-transparent schemes of sale of agricultural products and lack of wholesale structures create preconditions for large price fluctuations in the agricultural market and predetermine additional costs for producers, processors and customers.

3 Problem  Small-scale production;  Lack of primary marketing organisations;  Lack of logistics facilities

4 17.11.2015 SMALL PEASANT FARMS PRIVATE (FAMILY) FARMS AGRICULTURAL ENTERPRISES RETAIL BUYERS RETAIL MARKETS SHOPS NATURAL TRADE PUBLIC CATERING CLOSED INSTITUTIONS PROCESSING ENTERPRISES FREE LANCE MEDIATOR Problems of agricultural markets

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6 Corporate relationships with agricultural cooperation partners Rayon cooperative market Marketing cooperatives Private (family) farms and PPH Special establishments and institutions Private commercial business Agricultural enterprises Producers Consumers Agricultural Wholesale Market Ag produce purchasing centres, marketing groups Other consumer groups Retail trading Catering establishments Processing enterprises

7 Loss of produce in supply chain Ukrainethe Netherlands Producers 30 - 35 %15 – 20 % Sale 10 %5 % Consumers 25 – 30 %10 – 15 % Total loss ~ 65 %~ 35 %

8 Positive: Quality and quantity of productive land Proximity to the European, CIS and Central Asian markets Relatively cheap and available labour force Growth of chain leaders (Danone, Chumak, Sandora et al.) Potential for significant yield increase Various possibilities to increase off-season prices Negative: Inadequate attention to markets and value-added Lack of post-harvest processing technology Farm structure Research and advisory service Lack of funds Communications / networks and information Basic infrastructure Permissions Public-private partnership Bureaucracy /corruption / law International image of Ukraine Agro-logistics: Current status in Ukraine

9 Building supply chains: attention focusing; improving capabilities; knowledge about changes and trends in supply chains and markets; use of chain leaders. Improving chain competitiveness: continuous improvement of chains at every level; cooperation; goal setting; use of appropriate technology The development of international chains: finding contacts (networking); building trust; development of commitment; use of international standards and best practices; long-run work Improving supply chain management: focus on standards and enforcement; planning and control (costs and logistics / tracking); use of supply chain management Agro-logistics: Opportunities and perspectives in Ukraine

10 Role of Government: A clear and favourable policy (stable and long- term;) attention to "value-added chains“; development of communications, transport infrastructure; attracting investment; law enforcement; ensuring fair competition among participants; adoption of the Commercial Code (title / transparent and streamlined proceedings of dispute resolution) Public-Private Partnership: Developing PPP and promoting international best practices; focus on clear results and strategic interests (mutual commitment); open platform for public-private information sharing; promotion of Ukrainian food Institutionalization and awareness: Seminars / workshops on certain chains; special studies and advisory service Agro-logistics: Opportunities and perspectives in Ukraine

11  modern cold vegetable stores at private farm level (and pre- refrigeration storage facilities);  rooms equipped with climate control systems for the storage of fruits on large specialized farms;  modern warehouses near major cities that function as centres of distribution and provide services to wholesale dealers, importers and retailers. Experts estimate the amount of investment required to replace old storage facilities at USD 2 billion


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