"Ukraine: From Breadbasket Of Europe
 To Marketbasket For The World"
Food System Economic Development In Ukraine
From Field To Table -- Production To Consumption
The Number ONE Engine Of Economic Growth
The "HOTTEST" Industry Group In Ukraine Today

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(7) Report Number Seven-Ukraine Food System Dev.
EUROVENTURES UKRAINE
INVESTS IN FOOD SYSTEM DEVELOPMENT
Meat Processing and Mineral Water
(Advertisement In)
Eastern Economist Business Weekly, Page 6
December 28-January 14, 2001

 

"Euroventures Ukraine...since the operational start of the Fund in mid 1999, three new investments were approved, completed and disbursed as of the end of 2000."

"A total amount of Euro 5.9 ml was committed for equity investments in Rusanovskiy Meat Processing Plant (RMPP), P5 Communications (P5) and International Distribution Systems (IDS). The three investments were made out of Euro 26 ml commitments from EBRD, FMO and Fund Manager. Furthermore the Fund is sponsored by the Dutch Government, which also provides additional technical assistance."

"Founded in 1996--RMPP has become a leading meat processing company based in Kyiv, P5 has recently started up its Internet activities directed to Ukrainian individuals. IDS, which was started in 1994, now is a market leader in production and distribution of mineral water throughout Ukraine, also based in Kyiv. All these investments have primarily been selected, based on their growth potential and outstanding management teams...."


EUROVENTURES UKRAINE
19-b, Instytutska st.
Kyiv, 01021, Ukraine
Tel: 38 044 254 0787/ 254-0744
FAX 38 044 254 0676
E-Mail: recept@eufm.ukrpack.net
Web: http://www.evu.kiev.ua



(8) Report Number Eight--Ukraine Food System Dev.
AVAL LOAN TO CHAMPAGNE PLANT
Eastern Economist Business Weekly, Page 26
January 15-21, 2001

 

KYIV...Aval Bank has opened a Hr 15 mn credit line to the Artemivsk champagne plant, Aval Board Chair Oleksandr Derkach reported. The credit is for one year to purchase raw materials, bottles and labels...Arternivsk plant is Europe's largest producer of champagnes and makes use of classical production equipment techniques. The plant is capable of producing 11.5 mn bottles per year. has started work on a second plant. A building is being reconstructed for the plant and equipment has been purchased for the first processsing line.



(9) Report Number Nine--Ukraine Food System Dev.
"BEER PRODUCTION UP 19%"
Eastern Economist Business Weekly, Page 8
January 15-21, 2001

 

"KYIV...Enterprises belonging to the Ukr-Pyvo Association produced 74.7 mn dial of beer last year, which is just under a 19% jump in production indicators from 1999. The Khrakiv-based Rohan brewery had an output of 15.5mn dal of beer, which is up 33.3% from the previous year."

"The Slavutych brewery and beverage plant in Zaporizhzhia produced 14.9mn dal, the Donetsk brewery 8.7mn dal, Chernihiv-based Desna brewery 8.4mn dal, Mykolayiv's Yantar 7.8mn dal and the L'viv-based Kolos 2.4 mn dal."

"Beer production was even up from 1999 at small breweries like KhmilPyvo, Mykulynetskiy Brovat, Odesa's ChornoMor, Kyiv's brewery in Podil and Cherkaske Pyvo. Besides that, Kyiv's giant Obolon, which is a privately owned company that competes with UkrPyvo, produced 28 mn dal that was 1.5 times higher than in 1999. Overall, experts calculated that around 107.7 mn dal were produced in 2000 in Ukraine. (S. Seliutina, Jan. 11)



(10) Report Number Ten--Ukraine Food System Dev.
ROSYNKA OUTPUT ROSE IN 2000
Eastern Economist Business Weekly, Page 24
January 15-21, 2001

 

"KYIV...Production volumes at Kyiv-based Rosinka non-alcoholic beverages plant in 2000 increased 34%, said Deputy Director of the plant Roman Brenich. In 2000, the plant produced Hr 110mn worth of drinks. Brenich claimed that the increase of production resulted from increases in sales, which he in turn attributed to a well-developed marketing and advertising campaign. (UNIAN, Jan. 5)"



(11) Report Number Eleven--Ukraine Food System Dev.
"POLTAVAKONDYTER EXPANDS"
(SigmaBleyzer UGF Increases Equity Investment)
Eastern Economist Business Weekly, Page 24
January 15-21, 2001

 

"KYIV...The PoltavaKondyter Candy Factory is planning to complete construction of a new factory in Potava in 2001 and launch production some time in 2002 according to the plant's deputy director, Volodymyr Plaksiy. The plant is being constructed to satisfy what PoltavaKondyter feels is growing demand for its product on both the domestic and global markets. Plaksiy stressed that such products are in greater demand because they are high in both quality and in price."

"He added the construction is now possible with the entry of the US investment company SigmaBleyzer that is investing in the Ukrainian economy via the Sigma Group. SigmaBleyzer's stake in PoltavaKondyter is currently 90%. The confectionery issued shares at the end of last year in order to attract an investor. As a result of the US $ 22 mn issue, the authorized fund of PoltavaKondyter increased to US 24.82 mn. (UNIAN-Biznes, Jan. 6)"



(12) Report Number Twelve--Ukraine Food System Dev.
"SWEETING THE POT"
(20% Increase In Output)
January 22-28, 2001
Eastern Economist Business Weekly, Page 21

 

"The Bukovynka confectionery factory in Chernivtse is planning to increase output in 2001 by 20% compared to last year to 10,500 t. The company's management is confident it will achieve its aid due to an increase in the factory's capacity and export. The 8,500 t the factory produced in 2000 was 27% higher than 1999 output figures."

"The increase in production can largely be attributed to candies, caramels, and chocolate covered caramels. Incidentally, Bukovyhka is the only producer of chocolate covered caramels in Ukraine. The main importer of Bukovynka products is Russia, which imports 96% of all confectionery goods the company exports. Experts in the foreign economic relations department of Bukovyhka pointed out that the company has never enjoyed such a high demand for its product on the part of Russia. This is a clear indication that Russia is pulling out of its economic crisis. "

"The Chernivtsi candy factory also exports to Estonia, Israel, Germany and Greece. In 2000, Bukovynka exported 4,600 t of product, which is 54% of total output. The designed capacity of Bukovynka is 18,000 t per annum."



(13) Report Number Thirteen--Ukraine Food System Dev.
"SUN INTERBREW SHINES IN UKRAINE"
(Thirty Million USD Invested..More To Come)
(Production Goes Up 37%)
By: A. Borodayeva
Eastern Economist Business Weekly, Page 21
January 22-28, 2001

 

"KHARKIV...The Kharkiv-based Rohan Brewery became the property bof the Belgian company Sun Interbrew Dec. 29, 2000 at a meeting of the oversight of AT Rohan. Sun Interbrew bought 81.4% of the shares of AT Rohan and almost completely replaced the council members with five of its representatives, though AT Rohan President Ghennadiy Bilokur remained on the body."

"AT Rohan is the second largest brewery in Ukraine is terms of beer output volumne, next to the Kyiv based Obolon. Last year, Rohan had an output volumne of 15.5 mn dal, which constitutes a 37% increase from 1999..."

"Commenting on the most recent development-- namely, the acquisition of share in Rohan for nearly US $ 30mn by the Belgian-owned Sun Interbrew, Bilokur views the new owner as a strong, professional partner on the international beer market. With the help of Interbrew, Kharkiv brewers are hoping to expand their presence on the Ukrainian market and emerge onto the Russian beer market. In 2001, Rohan has plans to increase output volumne by 20-25%. More than Euro 11 mn is planned for investment..."

"According to statistics of the Anti-Monopoly Committee, with the acquisition of a controlling interest in Rohan and a controlling share package in the Oleksandriv Brewery, which are owned by Rohan, Sun Interbrew has gained a 35% share of the beer market in Ukraine..."



(14) Report Number Fourteen--Ukraine Food System Dev.
"CARGILL FOR STABLE CLIMATE"
(Cargill Investment Totals $ 85 Million USD)
Eastern Economist Business Weekly, Page 8
January 29-February 4, 2001

 

KYIV...Private investors are looking for a stable climate in the agriculture sector, which should depend only on the decisions of producers themselves, and not on government decisions, said Cargill Board Chair Warren Staley in meeting with Premier Yushchenko. Staley said the two discussed cooperation in the sunseed refining industry and mineral fertilizer production."

"Cargill has thus far invested US $85 mn into Ukraine's agriculture sector. Staley noted that Cargill sent a large group of its representatives to Ukraine because the COUNTRY IS ONE OF THE FEW, WHICH IS CAPABLE OF RADICALLY INCREASING AG PRODUCTION TO FEED THE WORLD'S INCREASING POPULATION." (UNIAN, Jan. 25)



(15) Report Number Fifteen--Ukraine Food System Dev.
"CONFECTIONERIES SWEETEN THE POT BY 31%"
(Production Up 31%)
By: S. Seliutina
Eastern Economist Business Weekly, Page 21
February 5-11, 2001

 

"Domestic confectionery producers produced 689,000 t of confectionery goods in 2000, with is 31.2% more than in 1999, according to UkrKondyter Vice President Yuriy Kozhanov..."

"The largest confectionery producers in 2000 were: the Kyiv Karl Marx confectionery factory at 52,000 t, the Vinnytsia confectionery factory and L'viv Svitoch at 42,900 t each, Dnipropetrovsk confectionery factory 32,600 t, Marlupol, Kremenchuk and Odesa confectionery factories 24,100 t, Luhansk confectionery factory 23,000 t. Behind them were the Kharkiv biscuit factory, Kraft Foods Ukrainian, the Poltava confectionery factory and the Kharkiv confectionery factory..."

"According to UkrKondyter's deputy director, confectionery production in 2001 could reach 800,000 t if the situation on the market does not change... At present, the total output capacity of all domestic confectionery enterprises is estimated at 830,000 t annually."



(16) Report Number Sixteen--Ukraine Food System Dev.
"CARGILL VISITS DONETSK SUNSEED PLANT"
(Forty Million USD Invested In Plant)
Eastern Economist Business Weekly, Page 21
February 5-11, 2001

 

"DONETSK...The delegation of the American company Cargill, headed by Chairman Warren Staley and President Greg Page visited Donetsk to inspect the company's sunseed processing plant. The delegation also included Cargill Europe President Hubertus Spierings and Cargill Ukraine President Patrick Bracken..."

"The Cargill complex launched operation in April, 2000. It specializes in non-refined sunseed oil and boasts a closed-cycle sunseed processing and bottling of sunoil. The size of Cargill Inc. investment is US $ 40 mn and the plant is a participant in the Donetsk FEZ."

"The plant's projected production capacity is 1,000 t of processed sunseed oil per day. Annual output is 156,000 t of sunseed oil and 135,000 t of oilseed meal. From May through December 2000 the plant produced 93,000 t of sunseed oil and 90,000 t of sunseed meal."



"UKRAINE FOOD SYSTEM GROWS RAPIDLY"
TO BE CONTINUED...  Part II To Follow SOON.



Ukraine Food System Reports Being Compiled From A Variety Of Sources. If You Have A Report For Part II Please Send It Immediately To:
E. Morgan Williams
President
Ukraine Market Reform Group
P.O. Box 2607
Washington, D.C. 20013
Tel: 202 437 4707
E-Mail: morgankiev@yahoo.com
Website: http://www.ArtUkraine.com