OREANDA-NEWS. November 28, 2007. In the context of its support in the development of agribusiness supply chains, IFC has been investing in Ukraine's Sandora for the past few years. Since 2004, it has provided $40 million in financing to the company to help strengthen its market position by improving product quality and broadening its reach to Ukrainian consumers, and support its expansion strategy. Sandora has gained a dominant share in Ukraine's packaged juice and nectars market and exports its products to countries across the region. Earlier this year, Sandora Ltd. was purchased by Pepsi Co.

In addition to financing, IFC has been advising the company on implementing the HACCP food safety system and improving its supply chain. When IFC began working with the company in 2004, it was dealing with over 150 midsize tomato suppliers, whose produce was of inconsistent quality. A key challenge was to develop a high-quality, consistent supply of fruit and vegetables to support the company's growth. To address this challenge, Sandora partnered with IFC to establish a supply chain development project in southern Ukraine, helping improve the efficiency and productivity of its tomato suppliers.

A Larger Effort

Work with Sandora is just one component of IFC's three-tiered approach to agribusiness in the region. Launched in 2005, IFC's Ukraine agribusiness project works with Sandora to identify key obstacles in the supply chain, and with local farms to expand, improve access to markets, and attain long-term sustainability. The effort has been increasing the competitiveness of farmers by training and mentoring them on good business management practices. IFC is also facilitating access to finance, improving linkages to markets, and introducing modern technologies.

IFC is also tackling broader policy work in Ukraine, such as resolving issues related to land ownership, most of which is still poorly defined by the country's land code. By working on legal issues, IFC can reach more farms in Ukraine than it can by working with Sandora's supply chain alone. This ensures that the direct work with Sandora is complemented by large-scale benefits to the agricultural sector.


Key results:
- Sandora signed contracts worth $4.5 million with IFC-supported farms for the 2007 season.
- Sales from project client farms to Sandora and other markets increased by $4.5 million (132 percent) from 2004 to 2006.
- About $3 million in financing was facilitated for 31 farms.
- Sandora's tomato intake from IFC-supported farms grew by over 110 percent from 2004 to 2006.
- The company expanded its sales to several export markets and entered the British market in 2007.