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As the level of industrial foreign investment in the food sector in Ukraine is still relatively low, the transition impact potential for this investment remains substantial, comprising:
• Expected enhancement of linkages with farmers (increased procurement, training and mediating with suppliers of farming inputs) as well as increased number of suppliers. Farmers will increasingly be able to use supply contracts with Chumak to obtain much needed bank financing.
• Innovative packaging and product development will also have an influence with retailers and distributors and carry a potential of substantially raising the industry standards.
• The investment will continue to support improvement of local managerial skills and know-how both within the company (new production techniques, products) and with its suppliers and clients (including dispersion of new sowing methods, harvesting techniques, new varieties of seeds, ultimately leading to higher yields).
• The Project will lead to cost reduction and optimisation as well as improvement of quality of Chumak’s oil products. New high quality products will ultimately increase consumers’ choice of packaged branded products in line with best practice industry standards.
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