The lack of storage capacity for fruit and vegetable products significantly limits the development of this sector of the AIC and has become even more significant since the beginning of the war. After all, most fruit and vegetable warehouses were focused on local producers concentrated directly in the areas of production, i.e. in the southern regions of Ukraine that are currently under occupation or in the war zone.
The relevance of fruit and vegetable storage centres in Dnipropetrovsk region had become important even before the war, as the benefits of investing in storage are obvious both to the farmer and the final consumer. The first one gets the opportunity to avoid the “price gap” that occurs during harvesting and arises precisely because of the lack of storage space for fruit and vegetable products, which forces producers to sell them for nothing. In addition, the availability of warehouses allows to extend the term of sale of fruit and vegetable products and to sell them more profitably in the “off-season”. The consumer receives high-quality domestic products throughout the year.
DIA is supporting an investment project for the construction of a 5,000-tonne capacity complex for storage, sorting and packaging fruits and vegetables. The complex, designed for high-quality storage of fruit and vegetable products with subsequent sorting, packaging, and delivery to consumers, is planned to be built on the production territory of the “Vidrodzhennia” farm, which is located next to a field where fruits (apples, pears, stone fruits), vegetables (onions, Chinese cabbage, carrots, zucchini), and berries (strawberries) are grown.
“Vidrodzhennia” farm has been present in the fruit and vegetable business for more than 20 years, cultivates 300 hectares of land, 200 of which are under irrigation, and cooperates with leading European nurseries, so it can recommend not only its own planting material but also experience. In 2020, the farm implemented its investment project of an intensive stone fruit orchard, planting 25 hectares of cherries, apricots, peaches, nectarines, European and Japanese plums.
Specialists of the “Vidrodzhennia” introduce new rootstock and variety designs, types of formation and cooperate with leading experts from such institutions as: Institute of Horticulture of the National Academy of Sciences of Ukraine, Melitopol Institute of Irrigated Horticulture named after Sidorenko of the National Academy of Sciences of Ukraine, Bakhmut Experimental Nursery Station.
Currently, the farm has its own warehouse with a capacity of 500 tonnes, but has to lease specialised storage facilities for fruit and vegetable products that cannot regulate the gas environment. However, the ideal option for a farmer to preserve his harvest almost completely is a full cycle: growing – storing – processing – selling. The main mechanisms of cooperation with investors are return investments with a payback period of 3-4 years or the creation of a joint venture.
More details on DIA’s investment projects are available at the link.
