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1 Report on activities carried out during the reporting period 10

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3.2.2 Support for development of agricultural producers’ marketing groups.

Strategic and Regulatory

  • Conceptualization and drafting of regulatory framework according to EU practice and in line with WTO principles to provide a clear and supportive framework (including financial) for the development of all forms of agricultural producer marketing groups (including cooperatives, limited companies, informal marketing groups).
  • Broad information campaign to ensure good understanding and awareness of the benefits from grouping for entering civilized market, which brings increased profitability and better opportunities.
  • Feasibility study on establishing packing houses for marketing groups (possibly using a form of service cooperative, to be determined through feasibility study).



Consultation Process


In order for the above to be effective, it will be essential to have an extensive consultative process, in order to establish the key problems and the most effective mechanisms to address them. This will include examining best practice and lessons learned in particular from EU member states with most relevant experience as well as dialogue with all key stakeholders and in particular with agricultural civil organizations (see activity3).

Mechanism


Service contract

Pilot project


To use pilot experience for demonstration of the key issues to be resolved with specific focus on storage, cleaning, grading and packaging in either the milk and meat or fruit and vegetable sphere.


3.2.3 Support for the development of agricultural civil organizations (including professional and inter-professional associations)

Strategic and Regulatory

  • Support for the Conceptualization and drafting of regulatory framework according to EU practice for the development of agricultural civil organizations using the issue of agricultural producer marketing groups as a primary focus.


Taking the key and current issue of agricultural producer marketing groups and where feasible through cooperation with similar agricultural civil organizations from EU countries, the project will highlight the key issues and stimulate the effectiveness of the consultation, analysis, drafting and lobbying capacity of the key relevant agricultural professional and inter-professional associations.

Information dissemination

  • Assistance to the development of mechanism of market information dissemination through professional and inter-professional associations using amongst other sources wholesale and assembly markets as a point for information collection and delivery to both sellers and buyers of agricultural produce.



3.2.4 Support for the wholesale / assembly markets and accompanying market information network

Strategic and Regulatory

  • Support for the development secondary implementing legislation for the "Law on wholesale markets for agricultural produce".
  • Further development of the Wholesale and assembly market "Master plans" produced within the EU financed project “Improvement of Logistic Services and Marketing Channels for SMEs in Agriculture” to establish the most effective balance of state and private resources (including existing state and non-state infrastructure) in supporting the development of National network of wholesale and assembly market infrastructure system.
  • On the basis of the developed Master plans undertake the most appropriate and prioritized pre-feasibility studies for wholesale and/or assembly market infrastructure, identifying the most appropriate options for Public-Private Partnerships.
  • Support for the introduction of transparent market information systems based at wholesale and assembly markets with state participation as appropriate and using the channels of information delivery through professional and inter-professional associations of agricultural producers



Mechanism


Service contract


4. Rural Development

4.1 Approach and justification


The Project will be targeted at addressing institutional, legal, and budgetary issues at the national level to address the problems which hinder rural development and the issues which arose during implementation of local pilot projects.


This component will address the rural sustainable development framework conditions and the issues of the best practice dissemination in the sector. It is synergetic and compatible in particular with the community-based development approach proposed by the EU Regional Fund (Sustainable Development – phase III) and with the Sustainable Local Development projects, as well as with other current and proposed donor activities in the sphere. The component is fully in line with the principles of Ukraine’s Agrarian Policy.


Preparation of local development programmes for rural communities is in the competence of local governments. Unfortunately, the local governments of most of the rural communities do not use such powers. Key reasons for this are the lack of the implementing regulatory framework (the justification) and the skills to be able to motivate the local community.


Local programmes of integrated sustainable development are a key instrument for support and development of rural initiatives and the citizens’ active inclusion in the community life, building up of social capital, creation of mechanism for determination of long-term development priorities, and identification of the financial possibilities. Such approach corresponds to General Measures of EU Rural Territories Policy Development (for 2007-2013) according to LEADER+. This concept foresees sustainable development of rural areas in the way of passing the powers and responsibilities to local communities.


To confirm relevance, there are models which are implemented by DFID Project in pilot regions and aimed at inclusion of community members in active social life and at building up of the local governments’ capacity.


To create conditions under which rural communities, executive authorities, and local governments will have real financial power for effective development of rural initiatives. Forming of the national budget on the basis of villages and regional budgets (bottom-up approach), which will mean self-dependent determination of the community’s needs and ensure effective disbursement and monitoring of the government funds.


Successful models of rural development which were realized by the international technical assistance projects (DFID, CIDA, SIDA, TACIS) and Ukrainian NGOs need further efforts in promotion and dissemination. It is vital that the positive outcomes and lessons from previous pilot experience are shared on a national level to encourage a policy input and replicate the best practice, avoid repetition of mistakes, and ensure the optimum use of government financial resources. This approach will ensure more effective use of the current mechanisms and resources in order to bring to both local governments and communities the information and mechanisms necessary for improvement of the social and economic status of their own communities.