GRANT UKRAINE FOOD CHAIN
The Ukrainian governments envisaged to increase its amount of pigs from 7 million to 12 million at short / medium notice. This market situation resulted in substantial investments. Taken the strong market position of the Dutch suppliers to the pig industry, it would result in significant and long lasting commercial opportunities for these Dutch suppliers. This chance was acknowledged by the Dutch private sector and realising an integral chain solution was regarded as the primary distinguishing feature. However this integral solution would result in substantial capital as well as marketing investments. Hence a grant was desired from the Dutch authorities. Taken our track record in similar projects, we were asked to acquire this grant in Ukraine.
GRANT UKRAINE : EXPERIENCE CENTER
The Dutch companies had been active quite some years in selling their products to the Ukrainian market. Its level of success was quite modest unfortunately. The final driving force – improving the financial results of pig breeding – was hardly realised with the Dutch equipment. The reason for this failure was the lack of understanding that the true solution would consist of an investment in the entire chain, consisting of 4 main pillars, namely housing, genetics, hygiene and management / know how. Until then the majority of the investments was based on partial solutions. Moreover the daily use of the partial solutions – despite various knowledge transfers – were often in the wrong manner. This poor operation resulted in a negative sentiments towards the Dutch products (“much more expensive and do not work”). This negative sentiment was not only communicated in the internal pig breeding facilities, however also beyond. Follow up investments did not occur and new customer relations were hardly realised.
Based on this practices various suppliers to the Ukrainian pig industry concluded that instead of showing, their target market should experience the added value in a live environment. The center point in this new market strategy consisted of developing awareness of the added value of the chain solution. This would be best realised by having potential customers experience how – in an animal friendly manner – to exploit a pig breeding facility with :
- A higher productivity;
- A higher quality;
- For lower cost;
- An exponential growth in their amount of pigs and
- An improved return on investment.
Potential customers would experience this in a so-called ‘’experience center’’, being a ‘’live’’ pig breeding facility in the Ukraine with over 2,000 pigs in which hundreds of people would be trained per year.
GRANT UKRAINE : MARKETING
Next to the investment, large scale marketing activities would be developed also. During several years this “Holland branding” would introduce the various Dutch companies to the Ukrainian market and various events would be developed. For these marketing efforts a Dutch grant was also desired.
SUCCESSFUL GRANT REQUEST
A broad consortium was established, consisting of various Dutch companies and a Ukrainian investor. Ultimately two grants were requested for this consortium, one for the investment project and another for the marketing activities. Both requests were granted, having a total grant size of over € 1.2 million.