Теги: investment
Investor looks for a project on top of trends

Beehive is a leading Ukrainian producer and exporter of honey. The geography of the company’s sales is very broad and includes such advanced markets as the USA, Germany, Denmark and Canada. In November last year, Beehive took part in the first investment forum – CUTIS Investment Roadshow

Ihor Liski, co-founder of the Ukrainian Institute for the Future (UIF), chairman of the board of directors of the Effective Investments Holding (of which Beehive is a part) explained why Canadians are cautious about implementing investment projects in Ukraine

Currently, all challenges create more opportunities for us than during all previous years of independence. Like never before, we need to prove our ability to work within the international business community.

Professional teams, ambitious projects and bold decisions spring up in Ukraine but nowadays this is rather an exception. The country is changing, people are looking where to apply their talents, and many think that the system of rating has not changed. If we want to compete with the rest of the world, we do not have to be afraid to surprise it with our knowledge, skills and ideas.

At least, some reforms have helped to intensify work with investors in Ukraine. There are investment forums at the regional level and legislative drafts to increase the country’s investment attractiveness. I’m sure that investors see this. That is why we are witnessing a new wave of interest in domestic projects. The main thing, however, is that Ukrainian entrepreneurs can realize their own ambitions. Still, you have to understand whether you have them. Successful projects do exist, but they are created mainly by young entrepreneurs oriented to exports and international trends.

The main thing has changed: investors are looking for a project that follows the calls of time. Thus, when creating a modern honey plant, we understood that it was in demand. High-quality food from environmentally friendly regions is a global trend, and we follow it. When Beehive understands its own significance for the whole industry and the country in general, the entire company moves forward. Only a combination of technology, teamwork and long-term trend analysis can provide solutions for narrow-focused tasks and make investors interested.

If we talk about the interest of international investors 10 years ago, one could say that money would flow like a river.

However, investors are changing, they are interested in new areas and become much more demanding, while Ukrainians in the meantime may have little to offer. Canadian investors know and understand our country very well. Having experience of work with domestic projects and knowing all the risks of such cooperation they invest with caution.

It’s hard to find a worthwhile project with real efficiency rather than drawn up in a business plan. I myself reject a lot of such projects almost every day. Ukrainian businesspeople should be more courageous and aggressive, learn to do international business. We must satisfy our hunger for knowledge, find new production technologies, learn to present our achievements. In addition to this, the world is changing, trendy global solutions become promising: green energy, circular economy projects, creative industry will be getting investments from now on.

Investors are now very demanding about Ukrainian projects because there are high risk factors: war, corruption and slow reforms.

A mere lack of trust in both the country and the principles of doing business in it. Entrepreneurs can change this attitude only with their own example and honest projects. In our company, we have been doing this for many years. Only the desire to live and work in Ukraine forces us to return to this endless work again and again. To create investment attractive business, to implement ideas that are crazy at first glance – this is the task of my company. No one can convince me that it is impossible to make a successful project now and attract investors from all over the world to Ukraine.

4 leading Ukrainian industries to invest – webinars
  1. Agriculture industry

Agriculture is one of the leading sectors of the Ukrainian economy. In 2016, the sector’s share amounted to 13.7% of the GDP of the country and 14.2% in 2015. Its share along with the food industry is more than 18% of the gross domestic product of Ukraine.

Participants:

  1. Olga Trofimtseva, Deputy Minister of Agrarian Policy and Food of Ukraine
  2. Bohdan Leshchyshen, CUTIS Canadian Project Director

Moderator: Mark Markevych, President of Crossways MK Consulting

  1. Energy industry

The energy industry is composed of oil, natural gas, coal, nuclear and hydropower, wind and solar. The basis of the energy industry is electricity. The power generating capacity of wholesale electricity market in Ukraine is nuclear, thermal, hydro and alternative energy with an installed capacity of about 52,730 MW. The average annual production of electricity is about 195.5 billion kWh. In 2016, Ukraine exported 520,600 tons of coal with a total value of $44.8 million. In 2016, Ukraine exported 233,587 tons of petroleum products with a total value of $86.5 billion.

Participants:

  1. Nataliya Boyko, Deputy Minister of Energy and Coal Industry of Ukraine
  2. Bohdan Leshchyshen, CUTIS Canadian Project Director

Moderator: Mark Markevych, President of Crossways MK Consulting

  1. Infrastructure and Logistics industry

The Infrastructure and Logistics industry is dependent on a strong transport sector. The Ukrainian transport sector has five transport modes: road rail, maritime, inland waterway and air transport. The transport sector of Ukraine includes: 22,000 km of railway routes, 170,000 km of automobile roads, 2,200 km of navigable waterways, 13 seaports, 4 fishing ports, 11 rivers terminals, and 21 airports. Transport, storage, postal and courier activity represents 6.6% of Ukraine’s GDP and employs 1 million people. In 2015, transport industry had estimated revenues of US$11.5 billion (5.1% of the business revenues in Ukraine).

Participants:

  1. Viktor Dovgan, Deputy Minister of Infrastructure of Ukraine
  2. Bohdan Leshchyshen, CUTIS Canadian Project Director

Moderator: Mark Markevych, President of Crossways MK Consulting

  1. IT & Telecom industry

IT segments (software development + computer hardware) and Telecom (communications services, including the Internet) had estimated revenues of US3.6 billion and grew by 22% in 2016. The major revenue components of the IT segment are computer equipment – 83%, IT services – 19% and packaged software – 7%.

Participants:

  1. Mikhail Titarchuk, Deputy Minister of Economic Development and Trade of Ukraine
  2. Bohdan Leshchyshen, CUTIS Canadian Project Director

Moderator: Mark Markevych, President of Crossways MK Consulting

Ihor Sanzharovskyi: Ukrainian producers should find their place on the Canadian market

Market analysis, certification, finding a partner in Canada and fluency in English are just a few of the key “must-haves” for the Ukrainian exporters to Canada. CUTIS project director Ihor Sanzharovskyi talked to UA TV about the crucial aspects of exporting to Canada.

The interview covers the structure of the Ukrainian exports to Canada, the main obstacles exporters face, free trade with Canada, and the prospects of bringing Canadian investments to Ukraine.

“The Canadian market is not empty, it does not simply wait for Ukrainian goods. Ukrainian producers need to find their place on the Canadian market and, let’s be honest, fight for the Canadian shelves,” said Mr Sanzharovsky.

Watch the full interview below:

First in the air: American investors interested in Ukrainian agrodron

Ukrainian start-up Kray Technologies, which participated in Ukrainian-Canadian Trade Show in April, signed its first contracts for agrodron production. The device received all necessary patents in USA. Properly working prototype was recently shown in action.

Performance of Ukrainian agrodrone

The device has a computer vision system that allows to recognize obstacles and automatically dodge them. The agrodrone’s productivity – 27-48 hectares per hour, 300-500 hectares per day. The drone races a record speed of 110 km/h. Chemicals tank capacity – 22.5 l and 15 kg. Future models will provide night vision mode. Drone working cycle: 15 minutes flight, 1 minute service. In one cycle it processes up to 14 hectares. Battery charge time is up to 60 minutes. Currently the pre-series commercial version of the drone is organized in Kyiv. Starting next spring, Kray Technologies will work on pre-orders for serial production for different countries of the world.


The cost of machinery

The cost of one dron is now about $50 thousand (together with the ground control station). When mass production is started the drone would be significantly cheaper. According to the founder, more than $350,000 have already been invested in the project. No Agro has been sold in Ukraine yet, but the company already negotiating with Ukrainian agroholdings.

Source: nachasi.com

Olga Vergeles: Canadian Supermarkets are Interested in Ukrainian Goods

The Parliament of Ukraine ratified the Canada Free Trade agreement on March, 14.Now, in order to become effective, the Agreement must be signed by the President of Ukraine, ratified by the Senate and signed by the Governor General of Canada. In a month after the ratification procedures are over the Canada-Ukraine Free Trade Agreement becomes a reality. According to experts, it may happen in summer, 2017.

Last year a Canada-Ukraine project for trade and investment support (CUTIS) was launched in order to help Ukrainian companies to enter the Canadian market. The Project is financed by the Canadian government and aims at technical assistance to Ukrainian exporters. propozitsiya.com learned from CUTIS Project Manager Olha Vergeles, what preferences Ukrainian exporters are going to get after the markets are open and in what goods Canadian customers are interested the most.

Who and how will CUTIS assist?

— We have a very good cooperation with the Ministry of Economy of Ukraine, in particular, the team of the trade representative of Ukraine, Natalia Mykolska and Export Promotion Office at the ministry. Together we support small and medium Ukrainian businesses that plan to enter the markets of Canada. Big holdings are capable of hiring consultants and prepare themselves for entering the market while small businesses often lack knowledge and they don’t know what to start from.

A study is currently underway, on the basis of which five groups of goods and services will be selected, that are of the most interest to Canada as imports from Ukraine. CUTIS will be looking for the producers of these goods and invite them to participate in the project. We have planned seminars and information sessions covering the most important export issues. We will also provide technical assistance on packaging, labeling, certification and, most of all, assist in searching for partners, organize meetings. According to our plan, Ukrainian companies will participate in trade shows and exhibitions in Canada.

How will the 5 groups of priority goods be selected?

— The selection will be done in 2 phases. We have analyzed the dynamics of Ukrainian exports to Canada and Canadian imports in general, in order to find out, which goods are being actively imported by Canada with positive trends during the recent 5 years and in which of these groups Ukrainian producers can compete.

We also looked at export opportunities of Ukraine and excluded the categories that are inaccessible for small and medium businesses. At this point, we have already selected 9 groups of goods and one group of services. The next step is to define five priorities. However, keeping in mind the fast dynamics of export markets, we are prepared to reconsider the five priorities. Apart from that, we always support anyone who wants to export to Canada, even if the goods are not part of the five priorities.

Will there be the goods of the food industry included?

Chocolate and confectionaries, as well as processed and canned fruit and vegetables, food processing equipment (refrigerators, flouring mills, packaging equipment) are already on the top-10 list. The final data on the priority groups will be available in April 2017.

Has CUTIS been frequently approached?

— Yes, we are very active online and tell a lot about Canadian market, using all possible resources. I obtain 2-3 requests from various companies on a daily basis. We have been approached by vegetable and fruit producers and well as gardening businesses. Among the frequently asked questions are: how to find a partner, what Canadian customers are looking for, etc.

We plan a Ukrainian trade mission to Canada in April. The group has been joined by frozen fruit and vegetable producers. They have already got international certification and are prepared to meet with representatives of Canadian retail chains.

How can one start cooperating with the project?

— For the beginning I kindly ask to send a brief information on a company (titles, web page, the range of products, certificates available, the scope of production) – this enables us to collect a company profile, which is included in our database. The applications should be sent to the email address office@cutisproject.org.

We receive requests from Canadian chains occasionally. E.g. we have been approached by Canadian companies interested in leading Ukrainian producers of fresh vegetables and frozen fruit.

Have there been any success stories yet?

— CUTIS co-organized a Ukrainian-Canadian forum in June 2016. 93 meetings took place during the Forum, resulting in 4 signed contracts. A pilot office of one Ukrainian company has been opened in Canada. A Ukrainian producer of birch sap met with the representatives of the biggest Canadian chain of supermarkets. They entered into contractual negotiations, including discussions of insurance and the range of products.

Only 4 contracts have been signed as a follow-up of the Forum. Why so few?

— This is a very good number if you take into account high requirements and conservatism of Canadian market. There are some problems with communication and compliance to product requirements. A lot of Ukrainian companies are not ready to export: they seem to show interest, they write about the advantages of their products, send presentations. However, when asked if they are ready to modify their business for exports, the businessmen realize that they are not prepared for it so far.

What are the three major requirements for the products?

— Certification, the required volumes, and terms of delivery are the main ones.

Is this feasible for the products to get straight on the shelves of supermarkets?

— It is quite feasible. But one should have patience. We’ve been working with a number of powerful chains. They file their requests with product groups. Ukrainian companies also have to be prepared to produce under the private label, when goods, produced in Ukraine, are sold under Canadian brand. It is quite profitable for a Ukrainian producer, for Canadians have little knowledge of our brands, whereas launching ad campaigns is very expensive and doesn’t guarantee further sales.

Indeed, there is a powerful diaspora, who buy Ukrainian goods in small stores, but this isn’t a big Canadian market. End buyers don’t know a lot about Ukrainian goods. Apart from that, in order to supply branded products, there need to be large volumes delivered, which is not always affordable to small and medium-sized producers.

Which products are of demand in Canadian supermarkets?

— Primarily, frozen berries and vegetables. Processing companies are interested in fresh vegetables for further production of mixes, salads, sandwiches. Apples are potentially interesting, but it comes down to the price and logistics because Canada gets apples from nearer countries resulting in their relatively lower prices. We’ve been talking to a Ukrainian company, that wants to enter Canadian market with its fresh vegetables. They are aware that, in order to make this happen, they need to have a logistics center in Canada, where the vegetables are packaged and quickly distributed among relevant stores. This option is sensible from the exports stand point because small producers can be engaged in forming big batches to Canada if they are dictated the technology of growth or production.
What should one be prepared for when planning exports to Canada?

— There is a false impression that, once the meeting took place, the contract can be signed in a month. Developed markets don’t work this way. Negotiations often last up to one year. Canadians are very conservative. They want to contact one specific person. They build relationships and communications slowly. To be honest, nobody is looking forward to seeing us in Canada. Therefore, we have to promote our products.

What are other main mistakes of new exporters?

— If a company visited a conference or a forum, it doesn’t mean that they are going to get a flow of clients and contracts right after. This will not happen. They have to visit a few more forums. And not just they visit but also fix appointments beforehand. Because, by the way, big Canadian chains will not pay attention to the proposal sent to a general office address, even if all relevant certificates are available.

Exports take time, resources and energy. The main mistakes are a lack of strategy and financial calculations. For example, juice producers, we have been taking care of, lower the price for the sake of entering the Canadian market. However, they do not guarantee exclusive terms. The common issue and the major factor of entering the Canadian market are the search of a partner and building mutual understanding.

What are the specificities of Canadian business culture?

— Conservatism. Digital tools commonly used here are not so widespread there. And not because they cannot afford them, but because a telephone is a tool for conversation and nothing more. Therefore, during a business meeting, people don’t exchange email addresses to make things faster. Rather, a Canadian businessman comes back to his office, opens his mailbox and gets to your message, probably, the next day. If the information isn’t given in appropriate format, he will not open the file at all.

There are specific standards involved. Thus, you either follow them or you’re out. If a company has certain proposal review procedure, it will not make any exceptions. These are the things Ukrainians do not understand, because they think, “hey, they are Ukrainians too, so we always find common ground”. It all goes in a profound and consistent way, step by step, as it is supposed to be. This is a major difference and the first thing that needs to be considered. Nobody is going to meet with you without preliminary arrangements made, without company information and presentation.

Why is it worth to export to Canada

— This country depends on its imports, which comprise 31% of Canada’s GDP. The National diversity of Canada is also an advantage. Every 5th citizen of Canada was born outside the country. On top of that, Canada is a regional hub, from which one can enter the markets of the US and Mexico.

What advantages is the Free Trade Agreement going to bring?

— Canada provides full and instant access to its markets, which is zero custom rate for most of the goods. However, some of the goods will be subject to quotas. Ukraine will go through gradual liberalization process – 3 to 7 years. Ukraine will also use tariff quotas for some goods, in particular, for frozen pork and lard. Sugar is excluded from the terms of the Agreement.

The Agreement provides for the Parties to work towards mutual recognition of accreditation authorities. In medium terms this means that Canada acknowledges Ukrainian accreditation authority (National Accreditation Agency of Ukraine) and a Ukrainian producer doesn’t need to go through more expensive certification in Canada.

The Agreement contains provisions on public procurement. Canada spends almost CAD 15 billion on procurement and Ukrainian companies will become eligible to participate.

How will the quotas be administered?

— Limitations are applied to wheat, barley, poultry, dairy produce, eggs, cheese, and sugar. It applies to all countries, not just Ukraine, though. Some quotas are not taken up. For instance, only 54% of dry milk whey quota was taken up in 2015 marketing year. Within the quota, 0% duty rate is applied. The specificity of Canada is the responsibility for imports, including the quality of goods, getting a license to supply within the tariff quota, taken by the importer. Even if the goods are shipped with violations or don’t comply with customs regulations, all the fines and penalties will be charged on the importer. Therefore, when a Ukrainian importer finds a partner in Canada, the latter will tell him about all the details because he is primarily interested in having the goods complied with all the requirements and no violations. Administering quotas is also a responsibility of an importer.

As far as margarine, wheat and barley are concerned, it works on “first come – first served” basis. For other goods limited by quotas, a preliminary distribution principle applies, i.e. one need to get the right to supply product within the quota by filing a respective application. This is within the authority of the Ministry of Foreign Affairs of Canada.

Do European exporters use the resource of the Еxport help desk. Is there any similar resource in Canada?

— Using the resource of Automatic Importing Reference System, by the code of goods (4 digits) you can get all the compliance requirements for agricultural produce. It is worth pointing out the purpose of imports: participation in trade shows, sales. All this information is available on the web pages of Canadian state control authorities.

Are there any special requirements to packaging and labeling?

— They frequently forget that food product should be labeled in two languages, with none of the language given the priority, i.e. fonts and lay-outs should be equal. An interesting detail: an expiry date is put in a “reverse” order as for Ukraine: year, month and date. There is a list of acronyms of months – the mix of English and French. As far as the indication of the country of origin, there is a list of produce (wine, dairy produce, honey, fish, meat, eggs, fruit, and vegetables) which must contain this indication.

— Developed countries practice responsible consumption. Is this relevant to Canada too?

— 60% of Canadians consider themselves responsible consumers and over quarter of them are prepared to pay for additional environmental and social benefits, such as: equal employment opportunities for women, equal pay, no adverse environmental impact. Right environmental labeling can inform the consumer of the advantages.

Is organic produce also popular?

Canadian organic market is the world’s top fifth – around $5 billion. The best-sold produce are fresh fruit and vegetables. The volumes of Canadian organic imports are constantly growing. Thus, 20 million Canadians report buying organic food on a weekly basis. They are prepared to pay a higher price for organic produce. The margin may reach 90-300%. The biggest margins can be obtained on organic juices and yogurts. It is important to note, that American organic certificate is also valid in Canada.

How much will the exports grow after the market is open?

— We will not see the instant growth of exports in 2017 because of the specificity of Canadian business mentality and unpreparedness of Ukrainian companies to supply big volumes. Ukrainian counterparts will most likely become more active. At least a year is required to have a substantial shift.

Paul Darby: Free Trade may cause a rapid investment growth

It is possible that the Parliament of Canada will ratify Canada-Ukraine Free Trade Agreement at its current session. This is the opinion by Paul Darby, the Canadian co-chair of Canada-Ukraine Trade and Investment Support project (CUTIS). He supervises the activities within the international technical assistance project aimed at increasing trade among Ukraine and Canada. The project entered its active phase after the Canada-Ukraine Free Trade Agreement had been signed in July with Prime Minister Justin Trudeau involved.

Paul Darby: Canada-Ukraine Free Trade Agreement was signed in summer 2016, and this is a clear indicator of how Canada treats economic relations with Ukraine.

We hope that the Parliament of Canada will ratify the Agreement in the course of the current parliamentary session, and we expect the same from the Ukrainian side.

Iryna Slavinska: Why has the Agreement been concluded? Is Ukraine such a promising economic partner?

Paul Darby: Yes, Ukraine is a bright example of a good country for Canadian investments. One should also remember about a huge Ukrainian minority in Canada that creates a lot of social and economic links among the countries.

Iryna Slavinska: It is obvious that signing of an agreement between Canada and Ukraine has a political dimension, isn’t it?

Paul Darby: Canada has always supported Ukraine; in particular, it was the first country to recognize independence of Ukraine, therefore, these links were always strong.

Iryna Slavinska: Can we predict any numbers regarding benefits Canada may get as a result of the Agreement signed with Ukraine?

Paul Darby: We have conducted an in-depth analysis survey regarding the impact of the Agreement over the economy of Ukraine. It has showed that the Trade Agreement will affect Ukraine’s GDP, taxes, jobs. There will be increase in jobs for Ukrainians related, in our opinion, to Canada’s investments to Ukraine. When we check similar Canada’s agreements with other countries, we see that it there is always a sharp increase in investments. And when the investments rise that high, they will stay at this level. We hope that it is just this sharp increase in investments that will occur in Ukraine.

The number of jobs for Ukrainians will increase due to Canadas investments to Ukraine

Iryna Slavinska: What are the Canadian goods that may be interesting and competitive in Ukraine and will Ukrainian products be able to win their respectable share so that to be present on Canadian supermarkets’ shelves?

Paul Darby: It is semi-finished goods, clothes, pumping machinery, various hardware, washing machines that may be interesting for Canada. In other words, we try to seek the goods with added value instead of focusing on raw materials.

We are also confident that Ukrainian confectionary goods and footwear will be popular at Canada market; they are highly competitive products.

Recently we also observe the growth in Canada’s demand for Ukraine’s IT services.

Our project funded by the Government of Canada will focus on the commodities and services like these with potential to be popular in Canada. But we shall be open to all companies. That means that, irrespective of your being selected or not for the final short list of the goods in the highest demand in Canada, the CUTIS project will be happy to provide you with assistance in terms of finding partners, buyers, trade fairs, clarifications on Canada’s regulations, etc.

This is a technical assistance project, and we shall be trying to reduce poverty in Ukraine by means of supporting, primarily, small and medium enterprises as they constitute the driver for the economy.

Iryna Slavinska: I have talked with some experts, and they underscore that Ukraine’s IT industry exports mostly raw staff –not the ready products.

Paul Darby: Yes, this is true. However, within the frame of our project we shall be seeking not only the companies that produce just coding for abroad; we shall be looking for those who develop ready products – specific applications and alike.

Iryna Slavinska: You have mentioned that you would provide support for small and medium enterprises, particularly in terms of opening access to the list of promising manufacturers or partners. Is there any procedure how it will work? What should an advice-seeker do?

Paul Darby: Our project has a representative office in Kyiv; you can find us on Facebook – CUTIS account; there is also the web site. Using these channels you may approach us with questions, particularly, Ihor Sanzharovsky, the Project Director in Ukraine.

The short-listed companies will be provided not just with advice. We are going to bring consultants from Canada so that they will hold training sessions with the selected companies to prepare their products for the Canadian market in cooperation with us. That means joint work to develop packaging, elaborate marketing strategies and the steps to meet Canadian standards.

The companies working in the selected areas will be even provided with an opportunity to visit Canada or USA.

Iryna Slavinska: What are the eligibility criteria for the companies to be short-listed?

Paul Darby: First, we are going to conduct a general analysis of the products and services, which may be interesting for Canada. Then we shall pick top-5 of products and services. The next step is that within this range of goods and services we are going to transparently choose the companies that will participate in our project.

The requirements to these companies will include the capacity to supply adequate volumes of goods for the Canada market. We shall also check whether the products of a company meet the environmental protection standards. The companies owned by women will be particularly focused by our project.

Iryna Slavinska: When should we expect that the Agreement will be ratified?

Paul Darby: It is a hard question; however, the Canada-Ukraine Free Trade Agreement’s ratification is in the agenda of the Canada’s Parliament’s current session. The session meetings will be over by April-May 2017. We hope to see the Agreement ratified till Christmas.

Source: Hromadske Radio

Paul Darby: Canada seeks Ukrainian exporters who will be able to succeed overseas

With the financial support provided by the Government of Canada the Сonference Board of Canada, a research organization, launches a project to identify the Ukrainian companies with potential capacity to export goods to Canada. Paul Darby, CBC, told Delo.UA whom they intend to find and what they are going to do for that.

There are a lot of reasons why we have started this project. There are a lot of Ukrainians in Canada: Ukrainian diaspora is 1.3 million people. Certainly, they are interested in working with Ukraine. Besides, currently Ukraine-Russia relations are tense. Ukraine seeks new markets for its exports, and we are ready to help, because Canada is one of such potential markets. In my view, at present the project is even more timely than if we had launched it 3-4 years ago.

We have signed an agreement with the Ukrainian Chamber of Trade and Commerce and the Government of Canada on the launch of the project aimed at increasing Ukrainian exports to Canada as well as increasing investments from Canada to Ukraine. The project is scheduled for five years. We are at the very initial phase now, and so far we conduct meetings with various organizations and are taking a closer look at local producing companies.

As soon as we finish our survey, we shall be informed which products we are going to focus on; then we shall start choosing specific producing companies. We must understand where exactly the goods are produced. Therefore, we are going to work with the companies based in regions and involve local organizations and chambers of commerce to conduct trainings.

But, I am certain that we are willing to find the companies whose products include specific added value. You see, surely enough, one can sell honey somewhere abroad at a ridiculously low price. Instead, one can sell beauty care products made with honey, and one is supposed to make much more money on selling these products than just honey.

Our key partner is the Ministry of Economic Development and Trade.  But we also work with private sector organizations, e.g. regional chambers of commerce. In future we plan to cooperate in some areas through partnerships with training organizations and universities that would contribute to transferring the knowledge to small and medium businesses’ owners.

Our target audience is the small businesses with prospects for exports to Canada.

Additionally, we are going to provide technical assistance. First, it is about packaging, marketing staff to sell the goods for Canadians, providing advice on Canadians’ quality requirements. Besides, it is about conducting trainings to train the individuals who will be helping local exporters to enter the external markets.

We plan to spend around 1 year to study the Ukrainian market in order to understand which products will sell well in Canada and which companies are fit to do exports. Our mission is just the first step. Then through analysis of the collected data we need to specify how the project shall be developing in future. It will take around two months. After that, by around June, the project will start to work in its entirety: the key activities will commence and financial support will be provided.

It is the Government of Canada that finances the project, but the private sector is supposed to share some expenditures. Within the frame of the project we plan to bring the companies to Canada to attend various events, trade shows, organize b2b events. The companies will have to cover some of the expenses to travel there. We do not know yet which share of the expenses must be covered by the companies: maybe it will be 50/50, or maybe they will cover 1/3 or 2/3 of the costs. It will depend on the sector where the company works, the type of business and products we shall choose as well as their prospective chances for success. However, the companies will have to cover at least 1/3 of the costs, anyway. The project’s total budget is 13 million CAD.

One of the objectives we are addressing within this mission is to meet other donor organizations. We have already had a meeting with the EBRD and we are considering the opportunities to cooperate with them to this or that extent. We already spoke with them about this, but we have not reached any specific decisions yet. However, there are areas where our cooperation with EBRD might appear efficient.

EBRD works on use of EU funding to support private sector, but they do not always focus specifically on exports, they concentrate on support for local producers’ development. We are interested in cooperating with them as partners who are able to help with developing local manufacturers and prepare them for exports activities.

More information on participating in the project is available through sending an e-mail – isanzharovskyi@yahoo.com – to Ihor Sanzharovsky, the project director in Ukraine.

If you want to provide information about you for the project, you should include the following data while sending an e-mail to this address: the name of your company; the name of an owner/chief executive officer; contact info; what your company’s products are, your production volumes; whether you have an experience in exporting your products and why will your product be a success at the market of Canada.