Vinnitsa, Ukraine, June 2, 2008—IFC,
a member of the World Bank Group, in cooperation with the Austrian Ministry
of Finance and AGRANA Fruit Ukraine, recently launched a program in Ukraine’s
Vinnitsa region that will help local fruit producers benefit from opportunities
presented by a growing market. The Apple Re-Sorts Program, the first of
its kind, will also help the fruit producers become more competitive locally
The new program aims to build a globally
competitive and sustainable supply chain in the apple production sector,
helping support the long-term growth for Ukraine’s apple producers. It
will introduce food safety standards and a traceability system, helping
ensure that products comply with international best practices and market
requirements. This initiative is based on eight years of research conducted
by AGRANA in Germany and Hungary.
“I’m pleased that IFC is active in
this region, and it is great to see the results of IFC’s investments and
advisory work to date,” said Oleksander Dombrovskyy, Governor of Ukraine’s
Vinnitsa region, speaking at the launch.
More than 120 participants, including fruit processors, banks, insurance
companies, input suppliers, inspectorates, and heads of local administrations
attended the ceremony. The Apple Re-sorts Program demonstrates a model
approach to agribusiness in the region, one that is based on partnership,
trust, and stability between IFC, AGRANA, fruit producers, and other fruit
sector stakeholders. This will lead to higher productivity, stable yields,
lower production costs, and higher product quality,” said Wiktor Kharkov,
General Director of AGRANA Fruit Ukraine.
This initiative is part of the IFC Vinnitsa
Fruit Supply Chain Development Project. Since launching in 2005, the project
has enabled nearly $1 million in new lending from financial institutions
to farms and has trained more than 260 farmers on improving practices.
The project has also helped 25 farms increase production by improving operations
and management, which led to more than $4 million of incremental increase
of revenue for clients.
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people should have the opportunity to escape poverty
and improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
Ukraine became a shareholder and a member
of IFC in 1993. As of March 31, 2008, IFC had invested about $887 million
in 38 projects in the country. IFC’s investment program is expanding rapidly,
with a focus on financial, agribusiness, construction materials, retail
trade and services, energy, and infrastructure sectors. IFC also
offers advisory programs on leasing, agribusiness, mortgage finance, and
improving the business environment. For more information, visit www.ifc.org/ukraine.
About the Austrian Ministry of Finance
The Austrian Ministry of Finance’s external economic program supports
the development and transition process in southeast and eastern Europe.
The program promotes sustainable investments to support economic growth,
create jobs, and improve the business environment. Supporting local and
foreign investments helps improve people’s lives and progress toward a
stable and prospering region. The goal is to contribute to private sector
growth by building capacity, supporting small and medium enterprises, facilitating
investments, and building business partnerships between Austrian and local