News Tag: експорт
What impressions did Ukrainian manufacturers make on Canadian buyers and what are the prospects of Ukrainian products in the Canadian market?

The CUTIS project has organized a visit to Ukraine for Canadian distributors interested in finding reliable food and beverage suppliers for the Canadian market.

During the 10 days of the trade mission that Canadian business representatives spent in Ukraine, they visited Kyiv, Lviv, Kharkiv, Dnipro and Zaporozhzhia and met with representatives of more than 40 companies.

Yuriy Baranov, founder of CAALCO distributors corp., distributor of Yummy Market (Canada)

My company has been involved in the import of alcoholic beverages for the Canadian market for over 20 years, and at the moment I am considering expanding the import line with foodstuffs. I have a good track record of working with such leading Ukrainian alcohol companies as Bayadera group (TM “Hlibny Dar”), continue to negotiate with Alef Vinal (vodka Green Day, brandy Jean-Jack).

During the mission, I also established business relationships with such well-known companies as Petrus, Staritsky&Levitsky. A real discovery for me was the company “Ukrainian Medovary” from Drohobych, which restored almost lost recipes of Ukrainian natural beverages based on honey. A nice addition to the CUTIS program was a meeting with the Ukrainian Chamber of Commerce management.

I personally visited 12 companies and had about 20 meetings with representatives of Ukrainian business. Most of them amazed me with the high production culture, quality of products, flavour profiles, professionalism of their teams. It feels like these companies have a clear export strategy, a creative team and are result-oriented.

I would like to emphasize the companies such as Beehive, Malby (TM Millenium), Klion group (TM Veladis), Lviv handmade factory, Bob snail, Bayadera, Bester. These companies have every reason to be optimistic about the future of Ukrainian exports to the global markets.

I am often asked what the main prerequisite for the success of a product in the Canadian market is. The answer is simple and complex at the same time: the product should be interesting to Canadian distributors and buyers.

If a Ukrainian company plans to target only the ethnic market and the Ukrainian diaspora in Canada this kind of expansion is 99% doomed. Indeed, the Ukrainian diaspora has more than 1.6 million people but the vast majority of them have no idea what modern Ukraine is and what kind of products it produces because their ancestors came to Canada before the 1917 revolution. True, they are loyal to everything Ukrainian, but they have grown up in Canada and usually consume local Canadian products they are used to.

I think it is optimal for a Ukrainian company to initially test their product in the ethnic market, to understand how interesting it is to Canadian consumers. Only if the product is in demand should they try to approach Canadian grocery chains and address such issues as customizing the name or developing the label to meet Canadian requirements (labels in Canada must contain information in 2 official languages – English and French). It’s worth starting with European-oriented networks such as Yummy Market or Starsky.

Michael Prudkov, Vice President of Crussimpex, a Canadian distributor company   

Crussimpex is a food importer that cooperates mainly with small manufacturers and distributes throughout Canada.

Crussimpex already has experience working with Ukrainian companies, and we want to expand the mix of Ukrainian products in the Canadian market.

During the mission, I met with representatives of about 20 Ukrainian companies. The overall impression is positive. There are many decent manufacturers on the market.

In today’s world, however, having a good product is not enough. You need to be ready to invest in entering foreign markets.

I got the impression that not all Ukrainian companies understand how to promote and sell their goods abroad. Exports require extra costs: into skilled personnel, interesting packaging, promotion, marketing, etc. No way without that. In addition, the entry process takes more than one day – it is unlikely to send a huge batch for the first time. One needs to move step by step and heed the importer’s advice.

You also need to understand the specifics of each region. Canadian consumers, unlike American consumers, are very conservative. It is difficult to get them to buy a product they are not used to. Although geographically Canada is a huge country, the size of the market is small, and it is by no means comparable to the US.

I would also advise Ukrainian manufacturers to take a more prudent approach to the issue of pricing. On average, the wholesale price in the Canadian market is three times higher than the wholesale price in Ukraine. Talking about the retail price, the difference is 4-5 times. This includes logistics, distribution costs, retail margins, exchange rate risks, and more.

Not all Ukrainian manufacturers understand this math. They hear the word Canada and immediately inflate the selling price. Canadian consumers are quite sensitive to the price. With overstated prices, Ukrainian goods simply will not find a buyer in Canada.

What Ukrainian foodstuffs have the best chance on the Canadian market? These are definitely not meat or dairy products because they are subject to import quotas and the certification process is quite complicated.

Confectionery products have very good chances and the leaders of the Ukrainian market (AVK, Roshen, Biscuit-Chocolate) are already presented in the market. I think other Ukrainian companies can become a name and compete with Belarusian, Moldovan or Russian manufacturers.

Grocery manufacturers have a good chance: I want to try putting Ukrainian fishery products on the Canadian market.

In general, the chances of Ukrainian companies in the Canadian market are not bad. I think that the representation of Ukrainian goods will only grow. Specifically, if there is support from such programs as CUTIS and from the State.

Emma Turos, Executive Director of the Canada-Ukraine Chamber of Commerce in Ukraine

When entering a new market, not only Canadian, a Ukrainian manufacturer should listen to local importers who understand specifics of their own market much better. Sometimes they ask about five steps to success. The answer is simple – 5 Ps (product, price, promotion, place and people) that you read about in any guidebook. I would add another “P” – practice. Practice export activities on a daily basis, and everything will get clear. Understanding the process of entering a market and the sense of time and partner are very important qualities of an entrepreneur.

In most cases, it will be difficult to sell the product as it is marketed in Ukraine. In the food industry, you need to consider everything – product appearance, taste, preservation of tastiness and appearance over a long period of time (only transportation to Canada takes almost two months), packaging, labeling, product and brand name. The product name must be clear to the buyer, it must be international. The exception is ethnic markets. In this case, the name should meet expectations as much as possible. Simply speaking, if the label indicates that these are “Artek” waffles, then they should comply as much as possible with traditional taste and appearance. Buyers buy such products in order to experience the “taste of childhood”. By the way, Ukraine clearly under performs in this area. For example, there are so-called “Kyiv” cakes on the Canadian market. However, they are made in Moldova. There is also a general rule: if a brand is stronger than a product, the brand must be promoted. If the product is stronger than the brand, then the product is promoted. One may also operate here under private label. Ukraine has very few globally known brands, so one should be flexible about the product name and brand. We have cases where both the product and the name were changed to more universal ones.

Pricing is another sensitive issue. Ukrainian manufacturers must clearly understand their competitors in each market segment. In the ethnic market, for example, (gingerbread, cakes, bagels, candies, etc.) we compete in price and quality with Moldova and Belarus.

Two heads are better than one and if a company has a clear strategy and resources I would not recommend saving on expert services. Without knowing the market requirements and the preferences of consumers in other countries, mistakes can be made that they will cost a lot. Trying to re-enter a new market afterwards is very difficult, since the Canadian market, for example, is not that big, and the reputation will be difficult to restore.

We live in a global world of change where you have to constantly fight for your place but do that diplomatically and with a polite smile. I am deeply convinced that Ukraine still needs to take a worthy place in the global trade not only with resources but also with high value-added products.

Ukrainian clothing manufacturers have every reason to succeed in Canada – fashion industry expert

The CUTIS project and the Canada-Ukraine Chamber of Commerce, under the CUTIS apparel trade mission, organized a visit to Ukraine by a representative of the Canadian fashion industry who is interested in finding reliable clothing manufacturers.

Sonali Nayak, Fashion Priests president, met with representatives of five Ukrainian companies participating in U CAN Export CUTIS support program for small and medium enterprises. They are:

Fashion Priests is a relatively new company with ambitious plans. It operates in several markets (including Canada, the USA, and India), and is constantly expanding purchasing geography.

Thanks to the Conference Board of Canada and TFO Canada, Sonali Nayak also visited Indonesia with a buyers’ trade mission. ‘Ukrainian companies are more ready to enter the Canadian market, the samples and models presented by Ukrainian manufacturers may be interesting for Canadian buyers,’ she said.

‘During the mission, I had the opportunity to meet with representatives of five Ukrainian companies (from the sports swimwear and leggings producer to the outwear factory) who made a positive impression on me.

Interesting models, modern equipment, high technology, good quality fabrics, creative teams are the components of Ukrainian clothing producers’ potential success in foreign markets,’ Sonali Nayak mentioned.

‘I definitely see the prospects for further cooperation. We have to harmonize, for example, size guides, because in Ukraine and Canada they are different, to choose the optimal styles and fabrics. I hope that the Fashion Priests specialists will visit the selected Ukrainian enterprises once again in the spring and will discuss all the details as well as made trial orders’, Fashion Priests president explained. 

Thanks to the Canada-Ukraine Free Trade Agreement, Ukrainian clothing is imported to Canada without paying import duties (18% on average). This is an additional plus for business partnership with Ukrainian manufacturers.

Maria Guzman, CUTIS Canadian expert and TFO Canada consultant, advises Ukrainian manufacturers to pay additional attention to details such as size matching, curves, seam size, etc. Ignoring such things can lead to Canadian buyers refusing to make an order, even if they generally like the style and clothing model, Maria Guzman concluded.

Interesting facts about free trade agreements with Canada

There are 14 free trade agreements currently in force in Canada involving 51 countries. According to Statistics Canada, at present Canada’s trade with these countries accounted for 78.5% of Canada’s IMPORTS and 89.7% of Canada’s EXPORTS in 2018.

The objective of free trade agreements is to increase trade with partner countries by reducing tariff barriers and opening access to foreign markets.

Three biggest free trade agreements:

North American Free Trade Agreement, NAFTA. Canada’s total trade with the member countries of NAFTA was valued at $788 billion and accounted for 66.8% of Canada’s total trade with the world in 2018.

Comprehensive Economic and Trade Agreement, CETA. Canada’s total trade with the member countries of CETA was valued at $118 billion and accounted for 10.0% of Canada’s total trade with the world in 2018.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership, CPTPP. Canada’s total trade with the member countries of CPTPP was valued at $98 billion and accounted for 8.3% of Canada’s total trade with the world in 2018.

On August 1, 2017, Canada-Ukraine Free Trade Agreement, CUFTA, entered into force. The Agreement will immediately open customs-free access to 98% of Canada’s market. This refers both to agricultural and industrial goods.

Canada’s situation is more complex. Right after the Agreement comes into force, the duties will be eliminated only for 72% of Canadian goods. The duties for the rest of 27% will be gradually reduced in compliance with transition periods – 3, 5, and 7 years. Besides, the Agreement provides for partial liberalization on the agricultural products key for Ukraine as well as some tariff rate quotas and specific goods.

Canadian ICT business successfully develops cooperation with Ukrainian partners at Lviv ІТ Arena

This year, Canada was first represented with its national booth at the Lviv IT Arena, the biggest Ukrainian IT conference, which was held on September 27-29 in Lviv, Western Ukraine.

With the support of the Government of Canada, a range of events under the Canada National IT Program has been conducted. It’s a bright illustration of the great attention paid to developing cooperation between the Ukrainian and Canadian ICT sectors.

With the assistance of the Embassy of Canada, six leading Canadian ICT companies have visited Lviv IT Arena for the first time (Tektelic, Free Balance, GTA, IT Solution Invest, IT Action Group, and Web4you). 

On September 28, Trade Commission Service, Embassy of Canada to Ukraine in collaboration with the Canada-Ukraine Chamber of Commerce and the CUTIS project, organized the Canadian Business Breakfast which included B2B meetings between Canadian and Ukrainian companies. Roman Waschuk, Ambassador of Canada to Ukraine, opened the breakfast.

During the event, the Ukrainian N-iX company made the presentation of Ukrainian ICT sector achievements (Ukrainian IT Market in 2019 and beyond). 

About 20 Ukrainian companies attended b2b meetings with potential Canadian partners, including as leading companies like EPAM, SoftServe, as small and medium-sized businesses participating in CUTIS export support U CAN Export program (Inoxoft, Perfectial, LaSoft, Taurus Quadra).

On September 29, Canada Meet-Up meeting was held with the participation of the Honorary Consul of Canada Oksana Wynnyckyj-Yusypovych and the Canadian ICT business. About 40 Ukrainian ICT companies visited the event.

Summarizing, it is worth mentioning that the interest of Canadian ICT business in cooperation with Ukraine is ample proof of the high level of services that Ukrainian companies can and already provide to international partners in IT and communications sphere.

Ukrainian footwear companies participated in Canada’s largest shoe show for the third time

From August 18 to August 20, Ukrainian shoe companies participated in Canada’s largest Toronto Shoe Show.

This year more than 650 Canadian and European footwear and accessories brands were taking part in the exhibition.

As part of U CAN Export Support Program, the CUTIS project supported the participation of seven Ukrainian shoe manufacturers:

  • KaDar (Lutsk, men’s and women’s casual shoes)
  • Kredo (Khmelnitsky,  rubber footwear with EVA soles)
  • Olteya (Zhytomyr, women’s leather shoes)
  • Alisa-Line (Kharkiv, children’s rubber footwear)
  • Realpaks (Kharkiv, women’s and men’s rubber shoes)
  • Shoesprom Group (Kyiv, men’s and women’s shoes)
  • Stepter (Lviv region, men’s and women’s shoes)

This is the third shoe show in Canada for the Ukrainian footwear business. Previous trade shows took place on August 2018 and February 2019.

The results of the first two exhibitions are positive. Six Ukrainian producers have already delivered their samples to Canadian buyers, and three deals are almost on a finish line.

Before the exhibition, the CUTIS project organized a meeting of Ukrainian business with Cougar shoe company, which has been successfully operating in the Canadian shoe market since 1948!

Besides, as part of the retail tour, representatives of the Ukrainian shoe industry visited several malls and shoe stores in Toronto, including Nordstrom, ALDO, Hudson’s Bay, Steve Madden, Brawns. Such an introductory tour is very important because it helps Ukrainian businesses understand specific of Canada’s footwear industry and consumers’ preferences.

The Canada-Ukraine Free Trade Agreement (CUFTA) entered into force on August 1, 2017, and opened customs-free access to 98% of Canada’s market for Ukrainian companies. Canada’s situation is more complex. The duties were eliminated for 72% of Canadian goods. The customs tariffs for the rest of 27% will be gradually reduced in compliance with transition periods – 3, 5, and 7 years.

The Canada-Ukraine Trade and Investment Support (CUTIS) Project is a 5-year (2016-2021) Canadian development assistance initiative designed to lower poverty in Ukraine through increasing exports from Ukraine to Canada and investment from Canada to Ukraine. The project funded by the Canadian Government through the Global affairs Canada and implemented by the Conference Board of Canada in partnership with the Canada-Ukraine Chamber of Commerce.

The CUTIS project implements U CAN EXPORT Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.

Ukraine significantly increased its exports to Canada – infographics

In 2018, Ukraine exported 78.2 million USD in goods to Canada – up by 50 percent in comparison with 2017.

If you compare the figures with 2016, the dynamics would be even more impressive – growth is almost three times.

Imports from Canada to Ukraine are also growing. It has increased from 299.2 to 333.1 million USD.

The Canada-Ukraine Free Trade Agreement (CUFTA) has a great impact on developing the volume of goods exporting to Canada. The agreement entered into force on August 1, 2017 and opened customs-free access to 98% of Canada’s market for Ukrainian companies. Canada’s situation is more complex. The duties were eliminated only for 72% of Canadian goods. The duties for the rest of 27% will be gradually reduced in compliance with transition periods – 3, 5, and 7 years.

Why the Canadian organic market is interesting for Ukrainian companies and how to get organic certification (video)

Canada is one of the world leaders in the consumption of organic products: an average Canadian spends about CAD 150 a month for organics. The Canadian organic food market is the fifth largest in the world (about CAD 5.4 billion).

Zoya Pavlenko, CUTIS environmental expert talks about the Canadian organic market and how to certify organic products according to Canadian standards.

Why is the Canadian organic market promising for Ukrainian exporters?

  1. Canada’s organic goods market is more than $5 billion.
  2. 60% of Canadians say they are ready to buy products that are made without risks to the environment
  3. 25% of consumers are willing to pay more for organic products

Regarding the regulation of the Canadian organic market, it is significantly different from the Ukrainian and European markets. Canada has its own national organic standards (Canada Organic Regulations) adopted in 2009.

More detailed production requirements and a list of permitted substances are contained in CAN/CGSB 32.310-2015 standards – Organic Production Systems – General Principles and Standards of Management, and CAN/CGSB 32.311-2015 – Organic Production Systems – List of Permitted Substances.

At the beginning of 2018, Organic Standard became the only entity in Ukraine entitled to certify manufacturers for exports to Canada.

Organic certification is a voluntary procedure. If manufacturers call their products organic, however, they are required to get certified. Otherwise, financial sanctions for unfair competition cannot be avoided.

Export training seminar for small business was held in Odesa

The CUTIS project (Canada-Ukraine Trade and Investment Support Project) in cooperation with chambers of commerce and industry has launched a series of training pilots for small and medium-sized businesses (SMEs) in Ukraine’s regions. The main goal is to present the new opportunities opened by the Free Trade Agreement between Canada and Ukraine (CUFTA) and train SMEs to successfully export to Canada.

A pilot training “Practical aspects of export to Canada” was held on February 21 in Odesa. The event was organized by the Odesa Regional Chamber of Commerce and Industry, Business education center of Odesa Regional Chamber of Commerce and Industry in cooperation with the CUTIS project.

The training in Odesa brought together more than 50 entrepreneurs from a wide range of sectors such as agriculture and consumer products, alcohol and non-alcohol beverages, clothing and footwear industry, handicraft and jewelry, engineering technology and shipping industry, etc.

During this training seminar, the following issues were discussed: the CUFTA opportunities and benefits for Ukrainian businesses, development of an export strategy, searching for partners in Canada, tariff and non-tariff regulation of export to Canada, use of e-commerce tools and market places for export of goods, etc.

Speakers:

  • Kostyantyn Ryzhkov, Project Manager, CUTIS
  • Olga Kopylova, head of a business support center of the Odesa Regional Chamber of Commerce and Industry
  • Yulia Pavlenko, Director of the Department of International Operations “Ukrposhta”, founder of the E-Export School project
  • Yevgen Sozansky, partner of Xtheta Management, official partner of Shopify
  • Dmytro Shvets, a lecturer at the Kyiv-Mohyla Business School, CEO of the consulting company Start Global

Please find more news and details of the following events on the Facebook page of the CUTIS project (https://www.facebook.com/CUTISproject/).

Entrepreneurs from Kharkiv learned about new export opportunities to Canada

The CUTIS project (Canada-Ukraine Trade and Investment Support Project) in cooperation with chambers of commerce and industry has launched a series of training sessions for small and medium-sized businesses (SMEs) in the regions.

The main goal is to present the new opportunities opened by the Free Trade Area between Canada and Ukraine (CUFTA) for SMEs.

A training session “Canada as a trading partner” was held on January 23 in Kharkiv. The event was organized by the Kharkiv Chamber of Commerce and Industry in cooperation with the CUTIS project.

Training session in Kharkiv brought together more than 70 entrepreneurs from a wide range of sectors – agriculture and consumer products, construction, clothing and footwear industry, furniture production, pharmaceutical and cosmetics production, etc.

During the program, the following issues were discussed: development of the export strategy, searching for partners in the Canadian market, tariff and non-tariff regulation of export supplies to Canada, logistics, development of marketing strategy, use of e-commerce tools, government procurement etc.

Speakers:

  • Daria Antonenko, expert of the sector of analysis and property valuation of the Kharkiv Chamber of Commerce and Industry
  • Alla Saypanova, head of the sector of analysis and property valuation of the Kharkiv Chamber of Commerce and Industry
  • Viktoriya Mikhailova, coordinator for international products development “Ukrposhta”
  • Yevgen Sozansky, partner of Xtheta Management, official partner of Shopify
  • Ekaterina Kolesnik, Head of sales department of ZAMMLER Ukraine Logistics Group

Please find more details of the following events on the Facebook page of the CUTIS project (https://www.facebook.com/CUTISproject/). Do not miss a training session in your city! The next city is Kropyvnytskyi (February 6).

Start your export to Canada: new free training sessions for Ukrainian SMEs in regions

The CUTIS (Canada-Ukraine Trade and Investment Support Project) project in cooperation with chambers of commerce and industry has launched a series of free training for small and medium-sized businesses (SMEs).

The main goal is to tell about the prospects of export to Canada and the new opportunities opened for Ukrainian business by the Free Trade Agreement between Canada and Ukraine (CUFTA).

The training sessions were held in Ivano-Frankivsk, Vinnitsa, Dnipro, Chernihiv, Lutsk, Kherson, Kyiv and Khmelnitsky.

We invite you to visit free training in your city:

January 17 – Sumy (https://www.facebook.com/events/376824589759585/)

January 23 – Kharkiv (https://www.facebook.com/events/2239363526390538/)

February 6 – Kropivnitsky (https://www.facebook.com/events/1845919805530749/)

February 21 – Odessa (https://www.facebook.com/events/374465973111381/)

February 27 – Mariupol (https://www.facebook.com/events/220735485547806/)

The experts of the CUTIS project, the Canada Ukraine Chamber of Commerce, the Export Promotion Office, as well as representatives of business, will take part in the training.

During the program, the following issues were discussed: development of the export strategy, searching for partners in the Canadian market, tariff and non-tariff regulation of export supplies to Canada, logistics, development of marketing strategy, use of e-commerce tools, government procurement etc

Please find more details on the facebook page of the CUTIS project (https://www.facebook.com/CUTISproject/). Do not miss the training in your city!