Only around 2% of Ukraine’s agricultural goods are currently sold via cooperatives

An agricultural cluster could be established in Khmelnytsky region (Western Ukraine) on the basis of 16 corporations that form the First Ukrainian Agricultural Cooperative. Executive Director of the Cooperative Oleksandr Buyukli announced this in an interview, Interfax-Ukraine reports.

“We have 16 enterprises in the region. These companies will become the basis for a cluster that would allow a small producer with 200-300 hectares of land to have his elevator, a grain drier and an approaching road for a car. We are now working on construction and investment in elevators, wagons and traction,” Buyukli said.

According to Buyukli, a mere 2% of Ukraine’s agricultural goods are currently sold via cooperatives, which shows a fantastic potential for the formation and development of cooperatives.

In December 2017, the First Ukrainian Agricultural Cooperative held a meeting with members of the cooperative, the European Bank for Reconstruction and Development (EBRD) and Radobank.

“The First Ukrainian Agricultural Cooperative is in close cooperation with the EBRD, as they provide not only significant professional support, but also technical support for meetings and fundraisers. The EBRD and Radobank realize the great potential of cooperative development,” the cooperative head said.

He said that the Bank is currently preparing numerous projects for the cooperative to process soybeans, wheat and sunflower.

The first Ukrainian Agricultural Cooperative was established on 23 March 2017. The cooperative unites 61 of Ukraine’s agricultural enterprises and has a land bank of around 180,000 hectares in 10 of the country’s regions.

Within the first eight months of 2017, the cooperative sold about 90,000 tons of grain and purchased some 20,000 tons of mineral fertilizers.