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Poland's agricultural producers gain from new wholesale market financed by EBRD
To improve trading and storage facilities for agricultural producers and suppliers of fresh produce in the Warsaw region, the European Bank for Reconstruction and Development (EBRD) is extending a 12.5 year US$ 15 million (ECU 11.8 million) sovereign-guaranteed loan to Warszawski Rolno-Spozywczy Rynek Hurtowy S.A. (the Warsaw Agricultural Wholesale Market Company - WAWMC).
"Currently, most fruit and vegetable retailers in Warsaw purchase their supplies at unofficial markets outside the city or directly from producers, resulting in price distortions, irregular supply and poor quality levels," explained Jacques de Larosière, President of the EBRD, at a signing ceremony attended by the President of WAWMC, Jacek Kalinski. "A modern wholesale market infrastructure would benefit consumers, producers and traders alike, with improved physical handling, competitive pricing and a reduction in entry costs."
Mr Kalinski added: "This wholesale market has been designed to meet the needs of various categories of operators from small farmers to large wholesalers and distribution chains. WAWMC has already been successful in raising private sector capital from more than 280 future operators and banks. It has also received valuable technical support from the European Union's PHARE programme and from the "France-Pologne" Foundation. The project has therefore encouraged partnership between private operators and public sector institutions. This partnership is an innovative approach to bringing the disciplines and capital resources of the private sector to public infrastructure financing. It will certainly be an example for the development of similar wholesale market facilities."
The new market, which will be managed by WAWMC, is located on the main road from Warsaw to Poznan. Covering an area of 62 hectares, contributed by the Polish Agricultural Property Agency of the State Treasury, the market will have room for various halls allowing for year-round trading, parking, offices and banking facilities as well as space to expand. WAWMC intends to offer about 2,000 individual units of varying sizes for the producers/distributors, many of whom are small businesses. Six hundred units have already been subscribed. The market should be operating before the end of 1998.
The Warsaw region is the main production area for horticultural produce, accounting for 10 per cent of total vegetable production and over 30 per cent of fruit production. As the largest city in Poland, Warsaw is also an important consumer of imported fresh produce.
In 1994 the Ministry of Agriculture and Food Economy drew up a nation-wide plan to set up a network of agricultural wholesale markets and commodity exchanges, under which the wholesale market infrastructure around major cities would be improved. To date, Poznan is the only wholesale market operating to international standards to have been established in Poland.
The EBRD has signed six similar wholesale market projects. These projects are currently being implemented in Armenia, Belarus, Bulgaria, Hungary and Romania for a total investment of US$ 197 million.
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