Table of content

Introduction........................................................................................................................................................3
1.

Vegetable cultivation ...............................................................................................................................4

1.1.

Production of basic cereal crops .........................................................................................................4

1.2.

Grain processing .................................................................................................................................6

1.3.

Production of basic oil crops ...............................................................................................................8

1.4.

Fat-and-oil industry .............................................................................................................................9

2.

Live-strock&poultry industry and conversion products .........................................................................10

3.

Fruit and vegetables ...............................................................................................................................14

3.1.

Fruit and vegetables..........................................................................................................................14

3.2.

Nuts/Peas ..........................................................................................................................................16

3.3.

Tomato paste ....................................................................................................................................17

4.

Fisheries sector.......................................................................................................................................18

5.

Logistical peculiarities of the region. Competitiveness factors .............................................................20

5.1.

Sea ports characteristics. Current situation and opportunities ........................................................20

5.2.

Railway transport ..............................................................................................................................28

5.3.

Vehicles .............................................................................................................................................32

5.4.

Air transport. Reloading potential for parishable products..............................................................35

6. Evaluation of export potential in the sectors with consideration of production and logistic potential ......36

7.

6.1.

Evaluation of resource basis .............................................................................................................36

6.2.

Evaluation of export potential ..........................................................................................................36

Summaries and recommendations. SWOT-analysis of economic sectors .............................................37

Introduction
Rural economy is one of the most important sectors of Odessa Region economy. In 2014 30,2
thousand people were employed in the arricultural sector.
The area of agricultural dands of the region is 2204,7 thousand hectares including 1959,2
thousand hectares of arable land. The structure of cultivated area mosty includes cereal crops and
and grain legumes (64%), industrial crops (27%), potatoes and vegetables (4%) and feed crops
(4%).
In 2015 Odessa Region presented 4,2% of gross product in Ukraine, including 5% of crop
production and 2,7% of livestock farming.
In 2015 specific weight of crop production in total amount of agriculture gross product was 81,1 %,
and livestock farming product 19,9 %.
The main competitive advantage of Odessa region is well developed infrastructure.
Odessa mainly concentrates major logistic companies with well developed business connections in
various countries of the world, traditionally these connections are maintained throughout many
years.
Depending on climatic and natural conditions of Odessa region and according to its agricultural
specialization there can be enlisted the following zones:
Stock-raising and grain zone (Savranskiy, Ananevskiy, Baltskiy, Kodymskiy, Kotovskiy,
Krasnooknyanskiy and Lyubashevskiy rayons);
Stock-raising zone with well developed production of sunflower (Velikomykhaylovskiy,
Berezovskiy, Ivanovskiy, Nikolayivskiy, Rozdilnyanskiy, Shiryaivskiy and Frunzinskiy rayons);
Milk, vegetable and poultry zone (Bilyaivskiy, Ovidiopolskiy, Kmonternivskiy rayons);
Stock-raising and grain zone with well developed viticulture and pig-breeding (BelgorodDnistrovskiy, Saratskiy, Tarutinskiy, Bolgradskiy, Izmayilskiy, Reniyskiy, Tatarbunarskiy,
Kiliyskiy and Artizskiy rayons).

1. Vegetable Cultivation
1.1.

Production of cereal crops

Climatic and natural conditions allow Odessa retion to cultivate the main cereal crops and to take
the crops much higher than amounts needed for internal consumption.
For the last decade the region has significantly increased the grain production. At the beginning of
2000 the average crop was approximately 2,6 mln. tons and by now the average five year index
has increased for 22 % to 3,18 mln tons.
Within relatively constant cultivated areas the grain production has increased considerably for the
account of the crop yield growth for the last five years. The major agricultural holdings and
neighbouring husbandries have continuously increades use of grain production technologies with
high-yield crop cereals of Ukrainian and foreign selection.
According to preliminary data the gross grain harvest in 2015 was 3484,7 thousand tons (in weight
after processing), that is 5,2% less than in 2014.

Grain, corn and barley are the main cereal crops with a harvest share of 90%. For the last five years
there has been considerable change in cultivated areas structure: the areas with grain and corn have
expanded for the account of the areas under barley, legumes and other.
Structure of Cultivated Areas under Cereal Crops

Grain
For the previous five years the average grain cultivated area in Odessa region has been of 505
thousand hectares. Meanwhile, the harvest varied within 0,9-1,8 mln tons. The grain yield mainly
depends on weather conditions. The minimal harvest was collected in 2012 and the maximum in
2015.
Cultivated Areas, Crop Yield and Grain Harvest

Barley
The barley production in Odessa region has been relatively constant for the last five years. The only
exception was a year 2012 when considerable share of sowing was damaged from unvavourable
conditions of overwintering. The production stability is observed against the harvest growth and
downsizing of cultivated areas.
Winter barley serves as basis for production and its share is 75% of the toral barley area in the region.

Corn
Cultivated areas under corn in Odessa region are mainly expanded for the last decade. Though, the
crop yield in Odessa region is significantly lower the index over the country. That is due to moisture
deficit in the South of Ukraine.

1.2.

Grain processing

For the last 10 seasons the flour production remained relatively stable in Odessa region and
decreased mainly due to demographic situation and alterations in product preferences of the
population. The maximum flour volume was produced in 2008 in the amount of 137 thousand
tons.
In 2015 market volume decreased for 12% comparatively with the same period in 2014.
The volume of flour consumption is mainly under impact of the following factors:
Volume of internal consumption defined by:
- population;
- population purchase power;

- price dynamics for baked products in relation which the rationalization of bread share occurs in
the average structure of food consumption;
Expenditure increase for the flour production, that in its turn lead to decrease in enterprises
profitability;
Demand for fluor on the external market.

In 2015 24 companies produced fluor in the volume of 88,2 thousand tons.

-10 Fluor Producers in 2015
Company Title
Kulindorivskiy Factory of Baked Products, PE
Bilgorod-Dnistrovskiy Factory of Baked Products, PLC
Farming Husbandry Kurtsaeva F.S.
Protos Agricultural Company, Ltd.
Agrofirm Khlibna Niva, Ltd.
Zernoproduct, Ltd.
Suzira - Firm, Ltd.
Lad, Ltd.
Grain Mill, Ltd.
ProdService, Ltd.
Total -10

2013

2014

2015

53 476
9 265
2 908
2 405
1 887
3 370
5 583
2 445

58 893
8 264
3 978
2 687
1 784
2 581
3 314
2 570

1 166
82 505

1 192
85 263

47 440
10 650
3 763
2 768
1 400
1 322
1 167
1 154
841
787
71 292

The leading producers of flour simultaneously do not act as the leading exporters.
Exporter
Odesskiy Karavai
Izmayil Elevator
Tavria-V
TH Bulkin
TH Organic Food
Belgorod-Dnestrovskiy KHP
Total amount

Export Volume 2015/16 ,

thousand tons
3,417
2,292
1,518
1,492
0,796
0,689
10,204

Therefore, being one of the leading producers of grain in Ukraine Odessa cannot employ its
potential in full amount to process cereal crops.

1.3.

Production of basic oil-bearing crops

The main production of oil-bearing crops in Odessa region is represented by sunflower and coleseed.
For the last years the total cultivated area under oil-bearing crops is constantly expanding mainly for
the account of expanded sunflower areas. In 2014 the total area of oil-bearing crops 510,6 thousand
hectares.
Historically the main oil-bearing crop for Odessa region is sunflower. For many years share of
sunflower in the structure of total cultivated areas under oil-bearing crops was about 90% in the
region. Though, in the season of 2006/07 there was a tendency to expand the coleseed areas. As a
result the sunflower share decreased to 75- 80%.
After the swift growth of coleseed production in the period from 2005 to 2008 there started its
continuous decrease in Ukraine and in Odessa region particularly. This tendency leaded to decrease
of specific weight of coleseed in the structure of sowing. In the season of 2014 coleseed share was
23% against 44% in the seafon of 2008/09.
The opposite situation is observed in the market of soybean, cultivated aread of soybean have a
positive tendency. In the period from 2009 to 2014 the areas of soybeans in Odessa region increased
for 60% from 6,7 to 10,7thousand hectares. According to the estimations the tendency to expand
soybeans areas shall be valid for the next 3-4 years due to its high demand. Though, in Odessa region
considerable expansion of the soybean areas is unlikely due to lack of moisture in the region. Mainly,
soybeans are cultivated on the irrigated areas. Further expansion of soybean areas is possible in
compex with the irrigation system development.
Sunflower
For the period of 2006-2014 sunflower production increased considerably. Cultivated areas under
sunflower expanded from 230 thousand hectares in 2006 to 415 thousand hectares in 2014.
Cultivated areas became the main factor in output expansion.

The chief incentive for the expansion of areas under sunflower is its high price/margin. Besides,
sunflower possesses a number of advantages over the other crops. The main one is the
comparative stability of yield in unfavourable weather conditions and tolerange towards drought.
Even in dry agricultural season the sunflower yield can decrease for less that one third, meanwhile
the corn yield can be lost for 60% or even more.
Owing to constant expansion of the cultivated areas the croppage of sunflower raised up to 750
thousand tons in 2015.

Coleseed
Sown area under coleseed in Odessa region for the recent years mainly reduced. Nevertheless,
gross yield remained high due to the stability or even growth of productivity. Among the main
reasons for the reduction of areas are the following:
- Extremely high risk of production (weather conditions in recent years have been unfavorable for
producers);
- Decrease in profitability of coleseed production, particularly in small farms;
- The need to comply with crop rotation;
- Absolute dependence on the export market. More than 95% of the harvested crop of coleseed in
Ukraine is for export.

1.4.

Fat-and-oil Industry

In Odessa region processing of oil material is limited to sunflower as the basic oil crop of the
region. The total capacity of sunflower processing in Odessa region is 2,6 mln tons per year (14,5
mln tont in Ukraine).
The following companies are the leading ones in sunflower processing in Odessa region:
Owner
Cernel
Creativ
Delta Vilmar
ADM
Risoil S.A.
Allseeds

Enterprise
Ukrainian Black Sea Industry
Odessa Oil Plant
Deltavilmar CIS
"Bessarabia-V"
Ilichevsk Oil Plant
Bio oil Universal Ukraine
Allseeds Black Sea

Processing Capabilities,
thousand tons per year
666
265
400
265
230
85
666

Share of Odessa region in the production of raw sunflower oil in the seasons of 2011/12- 2014/15
was 3%. Almost all the oil produced by these companies is exported to the other countries. This
process in basically supported by the location of these companies: almost all of them are located
in ports.
Production of sunflower oil in Odessa region, thousand tons
Owner

Enterprise

Cernel Group

Ukrainian Black Sea Industry

Odessa Oil Plant

Creativ Group

2011/2012 2012/2013 2013/2014 2014/2015

197,79
171,03
213,82
211,60
83,17
32,26
33,97

Vilmar
ADM
Risoil S.A.

Deltavilmar CIS
"Bessarabia-V"
Ilichevsk Oil Plant
Bio oil Universal Ukraine
Total amount

90,87
38,37
129,24

59,72
32,04
91,76

108,76
63,85
94,23
34,60
128,83

46,77
85,83
37,38
123,21

2. Live-stock farming, poultry and conversion products

At present the total number of live-stock and poultry belongs to private husbandries Odessa
region. Eventually, in 2015 private husbandries owned 86,1% of total live-stock number (2014
86,3%), including cows 89,2% (89,0%), pigs 70,2% (71,8%), sheep and goats 86,7% (85,5%),
poultry 97,6% (97,0%).
In the rating of cattle numbers in herds Odessa region takes 8th place, cows 9th place, pigs 7th
place, sheep and goats 1st place. In poultry population rating Odessa occupies 15th place.
Livestock and Poultry Rate in Ukraine and Odessa Region in all the Husbandry Categories,
thousand heads
2011
Total

2012

Odessa
region

Total

2013

Odessa
region

Total

2014

Odessa
region

Total

2015

Odessa
region

Total

Odessa
region

Cattle, Total

4425,8

190,2

4645,9

198,9

4534,0

206,6

3884,0

191,7

3776,5

188,6

Cows

2582,2

108,0

2554,3

107,6

2508,8

108,7

2262,7

104,5

2172,3

102,2

Pigs

7373,2

397,4

7576,7

390,1

7922,2

404,1

7350,7

371,6

7093,0

367,0

Sheep and Goats

1739,4

410,1

1738,2

403,0

1735,2

409,3

1371,1

381,3

1327,2

360,0

200,8

4,8

214,1

5,0

230,3

5,3

213,3

5,1

210,0

4,9

Poultry, mln heads

The biggest population of cattle and poultry in agricultural enterprices is located in the following
rayons of Odessa region:
Cattle (more than 2 thousand heads) - Berezovskiy, Saratskiy, Shiryaevskiy, Oviliopolskiy
and Artsizskiy
Pigs (approximately 20 thousand heads) - Bolgradskiy, Artsizskiy, Tarutinskiy
Sheep and goats (more than 9 thousand heads) - Tarutinskiy, Bolgradskiy
Poultry (more than 10 thousand heads) - Belyaevskiy, Belgorod-Dnestrovskiy, Kiliyskiy,
Bolgradskiy, Saratskiy, Shiryaevskiy.

Odessa Region: Number of Livestock and Poultry in Agricultural Enterprises, heads

2012
Rayon

Ananievskiy
Artsizskiy
Baltskiy
Belgorod-Dnestrovskiy
Belyayevskiy
Berezovskiy
Bolgradskiy
Velikomykhailovskiy
Ivanovskiy
Izmayilskiy
Kiliyskiy
Kodymskiy
Kominternovskiy
Kotovskiy
Krasnooknyanskiy
Lyubashevskiy
Nikolayevskiy
Ovidiopolskiy
Rozdilnyanskiy
Reniyskiy
Savranskiy
Saratskiy
Tarutinskiy
Tatarbunarskiy
Frunzevskiy
Shiryaevskiy

Cattle
383
2311
244
1598
1632
4123
1394
1731
934
253
1041
254
856
1140
1870
1064
0
2300
1029
152
317
4774
808
177
238
3416

Pigs
6929
18395
1645
8409
2921
1751
19662
3071
4594
4371
4972
1946
1751
1458
1236
1270
606
4163
1507
1734
604
5195
14597
109
215
5808

Sheep
and
Goats
498
2754
261
1078
712
3924
8567
817
1799
980
4299
69
2070
757
1328
877
1191
51
1110
1871
234
4845
12931
1658
1341
3712

2013
Incl.
Caracul
0
0
0
0
0
1126
0
0
0
0
0
0
0
374
958
0
0
0
209
0
0
0
4824
0
0
0

Poultry

Cattle

367
0
0
65046
0
0
18641
47293
0
0
22886
559
1780
0
758
2643
0
294
0
8043
0
0
1595
0
0
8535

395
2293
775
1599
1565
4138
1437
1561
738
260
1117
270
986
1079
1814
965
50
2457
1146
156
280
3943
370
136
24
3061

Pigs
7596
18319
1579
6848
2832
1838
21366
2198
5178
4331
5492
2000
2002
1424
909
965
598
4239
1800
1389
237
7558
18861
43
417
4916

Sheep
and
Goats
679
2908
239
750
780
3017
9411
464
1484
1038
4112
79
1322
788
1511
676
839
54
1257
1200
0
4929
14565
1153
1355
3024

2014
Incl.
Caracul
0
0
0
0
0
826
0
0
0
0
0
0
0
343
1028
0
0
0
199
0
0
0
5429
0
0
0

Poultry

Cattle

0
0
0
33118
23240
0
14629
158
0
0
19100
368
68
0
750
7881
200
180
0
2945
0
9938
1626
0
0
11093

446
2058
930
1624
1590
3624
1294
1464
671
180
1089
178
221
665
1467
944
0
2239
1196
67
200
3538
327
56
26
2722

Pigs
8122
19979
1481
6170
2678
1130
20122
2053
5299
3946
5549
2177
764
1558
340
964
276
3285
1583
870
219
7774
19382
66
479
4370

Sheep
and
Goats
2455
1276
52
586
955
2639
9198
354
1361
985
4360
107
1022
904
1527
748
874
85
974
619
0
4354
12485
1153
1209
2220

Incl.
Caracul
0
0
0
0
0
877
0
0
0
0
0
0
0
379
941
0
0
0
119
0
0
0
5419
0
0
0

Poultry
53
0
0
31773
33479
0
16785
99
53
0
19905
162
0
0
425
4027
200
10
0
0
0
16362
1155
0
0
10651

The predominance of livestock production share in private farms leads to the fact that Odessa
region is not fully using its favorable natural and climatic potential for forage production and the
potential for effective development of the livestock industry. In the production of eggs region
occupies only 21 place in Ukraine, meat - 19 place, milk -16 place. Simultaneously Odessa region is
the apparent leader in production of sheep's wool in Ukraine.
In 2015 there was a tendency to decrease production of wool and milk while meat and eggs
production remained on the same level.
Livestock Production in Ukraine and Odessa Region, thousand tons
2011
Odessa
Region

Total

Meat (carcass
weight)

2012
Odessa
Total
Region

2013
Odessa
Total
Region

2014
Odessa
Total
Region

2015
Total

Odessa
Region

2143,8

47,2

2209,6

46,4

2389,4

46,5

2359,6

47,1

2265,2

48,6

Milk

11086,0

397,3

11377,6

397,9

11488,2

402,3

11132,8

405,9

10682,4

385,1

Eggs, mln pieces

18689,8

397,1

19110,5

353,7

19614,8

355,1

19587,3

357,7

16780,39

355,1

Wool, tons

3877

1454

3724

1443

3520

1425

2602

1437

2261

1208

Honey

70,3

3,4

70,1

2,6

73,7

2,8

66,5

2,0

70,0

2,2

Production and consumption of basic livestock products per capita in Odessa region is lower than
in a whole across Ukraine. The self-sufficiency level for these products is below 100% in the region,
that reduces the ability to export at the present time.
Consumption of Livestock Products in Ukraine and Odessa Region, kg/individual

2011
Odessa
Region

Total

Meat and meat

products
Milk and dairy
products
Eggs
Vegetables and
gourds
Fruit, berries,
grapes

2012
Odessa
Total
Region

2013
Odessa
Total
Region

2014
Odessa
Total
Region

51,2

44,4

54,4

46,8

56,1

48,1

54,1

49,0

204,9

180,0

214,9

185,4

220,9

192,0

222,8

205,5

310

302

307

290

309

292

310

293

162,8

174,8

163,4

171,3

163,3

166,5

163,2

173,0

52,6

66,7

53,3

60,1

56,3

59,9

52,3

58,0

Livestock Production in Ukraine and Odessa Region, kg/individual

2011
Odessa
Region

Total

Meat and meat

products
Milk and dairy
products
Eggs
Vegetables and
gourds
Fruit, berries,
grapes

2012
Odessa
Total
Region

2013
Odessa
Total
Region

2014
Odessa
Total
Region

54,9

19,7

258,9

169,4

46,9

19,8

48,5

19,4

52,5

19,4

242,5

166,3

249,5

166,4

252,5

167,9

409

166

419

148

431

148

456

149

215

221

220

198

217

171

224

183

41

37

44

34

50

35

46

31

Rate of Livestock Products Self-Sufficiency in Ukraine and Odessa Region, %

2011

2012

2013

2014

Odessa
Region

Total

Odessa
Region

Total

Odessa
Region

Total

Odessa
Region

91,6

44,6

89,2

41,5

93,6

40,3

101,5

40,2

118,4

92,4

116,1

89,8

114,3

87,4

116,2

82,4

131,9

55,0

136,5

51,0

139,5

50,7

147,1

50,9

Total

Meat and meat

products
Milk and dairy
products
Eggs

Among the existing basic features ot reasins of insufficient development in the sector of livestock
farming in Odessa region we can outline the following:
predominance of production quotas in the private sector of the economy that leads to the
risk of raw material exposure to the market that does not meet the requirements in quality
indicators;
lack of stability and government support of agricultural producers, unpredictable pricing
policy, high level of capital intensity;
need for substantial investments;
most agricultural producers are not familiar with modern trends in the domestic and global
market of agricultural products or with the new intensive technologies;
production retardation generates high cost of goods, that leads to a lack of
competitiveness of Ukrainian agricultural producers in an open market;
trend for the agricultural enterprises to give preference to agricultural crop production
(cereals, oilseeds, etc.), due to its higher profitability and a high export potential. This leads
to a reduction in areas under forage crops, often to the elimination of less profitable or
even unprofitable livestock units, a decrease in the number of employed in agricultural
production, disruption of crop rotation and farmland degradation.
Odessa region has enough potential for areas of hayfields and pastures also for production of the
other baiting that is essential for successful development of livestock sector.
In 2014-2015 a number of agricultural companies invested into development of livestock
complexes. For instance, reconstruction of milk factory Stud Farm named after Posmitnogo Ltd
for 500 cows has been competed and reconstruction of milk factory with lactorium construction
for 600 cows in Agrofarm Petrodolinskoe of Ovidiopolskiy rayon and hog producing complex for
20 thousand heads in Agrofirm Vladiscke Podvirya of Ivanovskiy rayon is now ongoing.
Also reconstruction of another 7 cattle farms and complexes including: 3 hog complexes for 18, 27
and 12 thousand heads, 4 milk farms with tonal quantity of 1696 cows.
Ramping up via quality improvement of raw material and final products will allow livestock
producers of Odessa region to use the export potential of the sector in its full amount.
Meanwhile, it is worth noting that in reality it is necessary to overcome technical obstacles on the
way to export Ukrainian meat products to the EU countries and other international markets. The
essence of the stated limits is in the restriction of EU countries for import of meat products
without prior EU certification of the producing companies. Therefore, the intention of Ukraine to
integrate itself into the European Union requires compliance of national producers and livestock
sector exporters with international legal provisions, in addition, they need to follow all the
international quality standards in the production process. In addition, there should be noted that
export to some countries, i.e. Middle East countries and other, require consideration of additional
provisions like the necessity to obtain specific certificates (i.e. Halal certificate).

Due to some experience of Ukrainian companies entering the export markets for their effective
operation in importing countries the important role belongs to trade representatives or factoring
companies that deal with dissemination and promotion of Ukrainian products in the local retail
networks, participation in exhibitions and other relevant events.
Priority export directions for Ukrainian livestock products shall the countries of Asia and Africa. On
these markets there is a strong demand of poultry meat, pork and milk powder products.
Middle East countries market demands poultry meat, beef and lamb. Additiolanny, it might be
beneficial to investigate on the possibility to export stock oh the roof (lambs, cattle).
Potentially lucrative goods for export might be the ones produced under the Private Lable for
international trade networks of food retail and HoReCa networks.
The first-rate processers of livestock initial product in Odessa region are Titan Ltd. (Kiliyskiy rayon),
PE Garmash (Kominternovskiy rayon), PLC Vekka (Kominternovskiy rayon), PLC AMK
(Artsizskiy rayon), Agricultural Complex Drujba (Saratskiy rayon), Eremeevskiy Meat Processing
Plant (Odessa).
Honey is also potentially profitable commodity for the export from Ukraine and Odessa region in
particular. High ratings of honey production and its quality characteristics get our country to the
first place in Europe and the third place in the world among honey producers. As of now Ukraine
exports honey to the 22 countries. This fact evidences the acknowledgement of our commodities
as competitive ones in the international markets.

3. Fruit and Vegetable

3.1. Fruit and Vegetable
In Ukraine and in Odessa region in particular the pace of establishing new orchards and vineyards
is distinctly lower coparatively to stump extraction of the existing plants. This leads to decrease of
gross collection of fruit crops. In addition, production of this commodity is under strong impact
weather and climatic conditions.
Odessa region possesses favourable weather and climatic conditions for cultivation of fruits and
vegetables. Though, this potential is not employed in its full amount. At present Odessa region
occupies 10-11 place in the rating of vegetable production with its share of 5%, and 13th place in
the rating of fruit and berries production with the share of appr. 4%.
Fruit and Vegetable Production in Ukraine and Odessa Regio, thousand tons

Vegetables and
gourds
Vegerables

2011
Odessa
Total
Region
10561,9
575,0

2012
Odessa
Total
Region
10815,4
520

2013
Odessa
Total
Region
10667,9
455,3

2014
Odessa
Total
Region
10322,7
500,6

9832,9

526,9

10016,7

472,9

9872,6

408,6

9637,5

437,8

729,0

48,1

798,7

47,1

795,3

46,7

685,2

62,8

1896,3

88,0

2008,7

81,2

2295,3

82,9

1999,1

74,0

1118,3

30,6

1297,7

30,5

1391,4

28,8

1251,3

24,9

Stone fruits

545,9

47,2

489,5

41,8

651,5

45,2

512,0

40,7

Berries

119,5

3,2

124,5

3,4

136,4

3,1

132,9

3,0

456,0

212,3
9,4

575,4

256,6

435,6

263,7

116,0

10,7

105,0

9,7

Gourds
Fruit and berries
Incl pomaceous
fruits

Grapes
Nuts

521,9
112,6

229,1
10,8

97,0

Production and consumption indices of the basic vegetable and fruit products per capita in Odessa
region is considerably lower than the average index of Ukraine. The level of self-sufficiency with

these products is less than 100%, therefore, this fact decreases export benefits for the region at
present.
Consumption of fruit and vegetables in Ukraine and Odessa Region, kg/individual
2011
Odessa
Region

Total

Vegetables and
gourds
Fruit, berries,
grapes

2012
Odessa
Region

Total

2013
Odessa
Region

Total

2014
Odessa
Region

Total

162,8

174,8

163,4

171,3

163,3

166,5

163,2

173,0

52,6

66,7

53,3

60,1

56,3

59,9

52,3

58,0

Production of fruit and vegetable in Ukraine and Odessa Region, kg/individual

2011
Odessa
Region

Total

Vegetables and
gourds
Fruit, berries,
grapes

2012
Odessa
Region

Total

2013
Odessa
Region

Total

2014
Odessa
Region

Total

215

221

220

198

217

171

224

183

41

37

44

34

50

35

46

31

Rate of fruit and vegetable self-sufficiency in Ukraine and Odessa Region, %

Total

Vegetables and
gourds
Fruit, berries,
grapes

2011
Odessa
Region

Total

2012
Odessa
Region

Total

2013
Odessa
Region

Total

2014
Odessa
Region

132,1

126,4

134,6

115,6

132,9

102,7

137,3

105,8

77,9

55,5

82,6

56,6

88,8

58,4

88,0

53,4

The largest producers of vegetable products in the Odessa region are LLC "Pivden agro-processing"
(Belyaevsky rayon), Agrofirma Evrika Ltd, PE Sevrig (Ovidiopolskiy rayon), FH Victoria
(Tatarbunarskiy rayon), Agrofirma "Fakel" (Belyaevsky rayon), "Agrosvit" Ltd (Ovidiopol rayon).
The leadion producers of fruit and berries in Odessa region are Dunaisky Argo Ltd (Kiliyskiy
rayon), PE Vinogradar (Belgorod-Dnestrovskiy rayon), PE Comsomolets (Artsizskiy rayon), PE
Comuna (Lyubashevskiy rayon), Magic Ltd (Ovidiololskiy rayon), Liman Ltd (Ovidiololskiy
rayon), Pindenagropererabotka Ltd (Belyaevskiy rayon).
At present, the main problems of the fruit and vegetable industry in Odessa region are reduction
of production of these crops, absence of the required number of canneries and plants for their
processing, the lack of an established system of vegetables storage, which leads to a rise in the
cost of production, a large crop losses and as a consequence the region does not use its export
potential.
To overcome the problem it is necessary to create conditions for private investment in the
reconstruction of existing and construction of new processing plants, to create conditions for the
formation of industrial zones of cultivation of these crops, to explain to the locals the need to
establish production and marketing cooperatives, to create a regional association of producers
and processors of vegetable crops, to develop measures to create new and reconstruction of
existing vegetable stores, create regional utilities on the harvesting and collection of vegetable and
melon production.
As for the EU countries, the export to these countries is limited. Though, theoretically Ukrainian
producers are able to compete with Italians and Spanish in the markets of Central and Northers
Europe.
But in reality this target is not so easy to achieve. It is not exceptionally about preferences of local
consumers that are allegedly not ready to purchase Ukrainian products or protective measures
taken against these products. While shipping to Western Europe the cost of logistic services voids
price advantage of Ukrainian companies. Under these circumstances Odessa region would choose

Balkan region for export considerations. In these regions we can observe lucrative pricing for
logistics; therefore, there is a possibility to retain pricing advantage of the products. Besides, this is
a good starting point for further market expansion towards Central Europe.
One of the possible solutions in this situation can be a creation of separate logistic network,
possiply in partnership with European companies. It would be rather difficult for small and midsize
companies to do so without cooperation consideration.
With the unavailability of sustainable financial support for promotion of production (i.e. for the
advertising campaigns in the countries of retail) one needs to pay special attention towards search
of new potential customers and partners in the market of outlet.
The experience of Ukrainian fruit and vegetable exporters shows that the competitivemess is
much weaker in the sector of premium class products in Eastern Europe. The competitiveness
actually occurs rather between exporters than with local companies. Under this segment we can
also detect some usual competitive advantages of Ukrainian products: after the Ghryvna
devalvation they turned to be cheaper than European analogues, that means, these products
became more affordable for local consumers. One more important thing here shall have effect:
the expansion towards the neighbouring market is not supported with big advertising campaigns;
therefore, still there is no need for additional expenditures under this line. Traditionally, it is much
easier to achieve agreements with small networks comparativery with national ones with the
supermarkets all over the country. But due to the volume of sales and high logistic expenditures
the profit margin is much lower here. Successful sales in local supermarkets allow to strenghthen
the company position in the negotiation with the leading retailors. If a company enters the
market with more expensive products most probably it would need to take considerable
expenditures, though it will obtain more income under this condition.
Good demand for your products will always be the most important argument in negotiations.
Although sales in local networks are important for you as a separate provision. They would allow
understanding what products are in high demand and eventually making sufficient changes in the
action plan for the future.
Experience of Ukrainian exporters shows: food manufacturersneed to spend six months to a year
to enter the Eastern European market. As a rule, the national networks prefer to make contracts
at the beginning of a year. That is why companies have a next year to get all the permits and start
working with local networks and in 2017 to begin mass export already working with major retail
chains.
When entering foreign markets the company requires active use of local experts. If working
independently without support of major retail chains Ukrainian producers have to follow all
international rules, for example - in the field of product labeling where standards differ
significantly from the usual Ukrainian. However, it is equally important that it is often tnecessary
to hire local professionals for better understanding of the local market.
In order to successfully enter the international market it is necessary to deeply explore it by
examining the local customer preferences and take into account that even if this customer is
looking for a cheaper product he is not ready to tolerate the decrease in quality.
At present fruit and vegetables produced in Odessa region are in active demand. First of all this
statement is valid for nuts and tomato paste.
3.2.

Nuts

Deliberate formation of walnut forests in Ukraine started in 2009. Odessa region possesses a very
small number of husbandries with big nut gardens. Basically, they are walnut ones. The major are
enlisted below:

Husbandry
Ltd. Nika Invest Agro
FH Agro-Marin
PE Marlen
FH Orekh Plus
PE Max Agro

Rayon
Bolgradskiy
Reniyskiy
Rozdelnyanskiy
Kotovskiy
Izmayilskiy

Variety of nuts
Walnut
Walnut
Walnut
Walnut
Almond

Area, hectares
Appr. 90
Appr. 30
25
Appr. 20
Appr. 26

The areas under hazelnut do tot exceed 1-3 hectares.

Walnut is one of the most profitable and lucrative crops of modern horticultura in Ukraine. High
consuming value of the nut secures high demand and comparatively easy marketing. Ukraine
harvests up to 22,5% of the total ingathering in Europe, meanwhile, the export share increased up
to 30%.
As of now Ukraine has the following nuts export directions:
Export of high quality nut for consumption in fresh to the EU countries and NorthernWestern Asia,
Export of moderate quality nut for internal use in the CSI markets and partially in Asia;
Export of peeled nut;
Export of byproducts (oil, oil meal, BAAs)
One of the major Ukrainian nut exporters in "UkrNut Company" PLC(Odessa).
3.3.

Tomato Paste

Ukraine is considered to be a major producer of tomatoes. Through the south of the country,
including Odessa region, there passes so-called global "tomato belt" - climatic zone with plenty of
sunny days that are favorable for cultivation of industrial tomatoes. This area allows to cultivate
tomatoes with high solids content especially important for producers.
Ukraine has substantial potential for tomatoes cultivation ant their further processing. At present
annual level of tomatoes production in Ukraine is approximately 1,6-2,0 mln tons with the share of
21% in total amount of production in the country. Quality of tomatoes and processing procedures
are under strong impact of weather conditions in the areas of tomato cultivation.
Specific feature of Ukrainian material raw material market is the fact that the majority of
husbandries cultivate small amounts (not more than 10 tons) of tomatoes. In addition, many
Ukrainian farmers are trying not to concentrate their production on one vegetary crop. Therefore,
they aim to decrease production process risks; meanwhile, they are incapable to form big
consignments because they spread themselves to a variety of vegetables.
The leading tomato processors choose either to develop a network of farmers-suppliers or set out
vertical integration to solve raw material problems.
The first-rate producer of tomato paste in Odessa region is Odessa preserving plant, PLC
Pivdenagropererobka and Agrofirm Evrika.
Creation of competitive production allows Ukraine to compete with the major tomato producers
in the international market. For the last decades the tomato paste export dynamics has a positive
tendency.

4. Fisheries Sector
Odessa region is one of the leading fishery regions of Ukraine. Considerable amount of internal
water reservoirs and sea accessibility allow to obtain bioresources without any obstacles. At the
same time specific weight of Odessa region in the Ukrainian accessibility towards bioresources is
relatively low: 13% of catch in internal waters and 6,5% of catch in the sea.
Extraction of bioresources in Odessa Region and Ukraine, 2013-2014, thousand tons
Catch in internal waters
2013
Ukraine
45,695
Odessa region
5,462
Catch in sea
2013
Ukraine
78,848
Odessa region
4,238
Source: State Committee of Statistics of Ukraine

2014
39,092
5,123
2014
51,640
3,342

Fishery complex of Odessa region is represented with 38 water reservoirs including 31 pond and 7
water storages with total area of more than 4 thousand hectares of water surface.
Aquaculture in Odessa Region, 2014
Name of water body
Pond
Water storage reservoir
TOTAL

Quantity
31
7
38

Area, thousand hectares

3,305
0,685
4,021

Source: data provided by State Fishery Agency of Ukraine

Production potential of these water resources in the region is 3 thousand tons per year.
Fishery complex of Odessa region is represented with commercial fishing out and specialized
commercial fish-farm.
Fisheries Industry in Odessa Region, 2014
Commercial fishing-out
Number of companies (SP, Ltd) - 90
Fishermen 1720
Vessels 838,
Boats 830 items.

Specialized commercial fisheries

Number of water reservoirs 11
Area of water reservoirs 74,803 thousand hectares
Fishermen 484 individuals

Vessels 178 items.

Source: data provided by State Fishery Agency of Ukraine
Chief Market Players

Leading producers of fish and sea food in Odessa region, 2014

Company
Catch, tons
Total
8893,3
COMPANY "LIMAN"
2355,5
"REPIDA"
869,5
"VMS-10"
836,5
"FIF-2012"
527,6
"BORA"
470,4
"HOLOD-SERVICE"
356,8
SP"TILIGUL PLUS"
337,4
"KRASNIY RYBAK"
260,8
"OZERNE 2012"
241,5
"VIDRODZHENNYA"
198,6
Source: State Committee of Statistics in Ukraine, calculations provided by Ukrainian Agricultural Consulting

Drivers and Tendencies

A modern fish market in Ukraine is represented mainly by commodity average price category both marine and freshwater. Marine fish are sold mostly frozen, freshwater fish - fresh.
Fish production in different forms of property holdings is widespread throughout Ukraine and has
a tendency to expand, despite the considerable risks. Trends cultivation of freshwater fish in
Ukraine is quite large.
Fish and seafood market is characterized by a high degree of "shadowing", large amounts of fish
are produced and sold illegally. A significant part of the market is not structured, the
implementation is seasonal, often spontaneous.
In view of the environmental problems associated with a significant discharge of wastewater into
water bodies, as well as pollution of groundwater with herbicides and pesticides, in some places
there are significant problems with the quality of water for fish farming. This greatly increases the
incidence of fish and reduces its quality.
Unmet demand for fish in Ukraine is one of the main growth factors for this type of business.
However, the opacity of the market, a high level of shadow economy makes its investment
attractiveness limited.
Economic activity on the cultivation of freshwater fish in Ukraine is quite promising in terms of
several factors, namely:
- The availability of a significant production capacity and the potential to increase their
productivity;
- Pent-up demand for fish, including fish inexpensive varieties;
- Healthy eating demand (low-calorie and easily assimilated protein in the diet of people).
From water bodies suitable for the development of aquaculture in Ukraine is currently involved
only half, with about 60% of them used with low efficiency. One way to increase the production of
freshwater fish is to increase the productivity of water used.
According to market participants, Odessa is one of the most attractive for fish farming regions of
Ukraine. Odessa region has considerable production capacity, including both freshwater and
marine waters of the Black Sea. The prevalence of moderate-continental climate (mild winters and
warm summers) allows the fish to grow and gain weight faster than in regions further north.
A promising, according to the obtained results is an increase in the production of freshwater fish in
the Odessa area by a decline in production volumes and catch saltwater fish. This factor is not only
a local or regional, and global trend due to the reduction of fish stocks in the oceans and the
impossibility of its reproduction by artificial means. FAO (Food and Agriculture Organization of the
UN) predicts that by 2020 only 35% of the global food basket will be fish caught in the wild, and
65% - grown in aquaculture (fish farming in a controlled fresh water) or Mariculture (growing in
seawater).
In the matter of identifying the most promising type of fish to the production will be in the first
place, the level of purchasing power of the population and bring the level of fish consumption in
Ukraine is physiologically necessary.

Important tasks of the sector in the near future are the development of infrastructure and the
logistics of the delivery system of fish products to the consumer, the introduction of advanced
production technology and its fish processing enterprises with modern equipment with new
equipment.
The development of the fishing industry will largely depend on the level of investment required for
the introduction of new technologies of production and processing. In addition, the strong
influence of the state will remain on the functioning of the sector as a whole. In this connection, it
should be noted that the deregulation of the market processes can contribute to the overall
"detenenizatsii" market, which will improve its performance indicators and investment
attractiveness.
Increasing the investment attractiveness of the industry can promote and industrial fish farming in
the sea. Previously, this type of business activity was not possible, since it was impossible to assign
to a particular user of land for rent, but now it's real. According Gosrybagentstva specialists in the
Odessa region has good prospects for breeding, not only traditional types of fish, but also those
that are now imported: dorado, sea bass.
Ukraine. Estimation of and fishery products fish market, 2013-2015.
Consumption fund, thousand tons
Total catch of fich, thousand tons
Wholesale price of catch, thousand UAH
Retail turnover of fish, sea products, including fish in
tins (presenved fish), bln UAH*
*without consideration of market sales
Source: estimations provided bt State Fishery Agency of Ukraine

2013
623,7
225,0
730,4
7,0

2014
479,4
91,2
526,8
7,1

2015
452,1
94,6
556,2
3,3

5. Logistical Features of the Region. Competitiveness Factors

5.1.

Characteristics of sea ports. Current situation and their potential

There are 8 sea port and 1 fishery port on the territory of Odessa region:

Belgorod-Dnestrovskiy Sea Commercial Port

Izmail Sea Commercial Port
Ilichevsk Sea Commercial Port
Kiliyskiy Port
Sea Commercial Port Yuzhniy
Odessa Sea Commercial Port
Reni Sea Commercial Port
Ust-Dunaysk Sea Commercial Port
Ilichevsk Fishery Port

Sea Ports of Ukraine

Source: SIF Service

The unique position of the Ukrainian ports (in the way of international transit corridors) and their
proximity to a number of key markets (Middle East, North Africa, Europe) significantly increases
the competitiveness of these ports.
Ports in the region occupy leading places in the export shipments of agricultural products,
including cereals and vegetable oil. For example, in 2014-2015 major ports of Odessa region
processed more than 60% of grain exports in total, and about 60% of oil exports.
The main sea ports of Odessa region for transshipment of grain and oil are the Yuzhniy, Odessa
and Ilyichevsk.
Ukraine. Structure of transshipment in sea ports, 2014-2015, %

Ukraine. Structure of vegetable oil transshipment in sea ports, 2014-2015, %

Source: data provided by SE Administration of Sea Ports of Ukraine

In general, the major sea ports of Odessa region (Odessa, Ilyichevsk, Yuzhny) have a number of
advantages that give them a competitive edge when compared with ports in other regions,
namely:
- Good geographical position and the proximity of key markets for agricultural marketing
- Developed port infrastructure, including the availability of modern specialized and universal
cargo complex
- Developed access infrastructure, including roads and railways
At the same time, the small ports of Odessa region located at the mouth of the Danube river has
recently lost some of its cargo flow.
Capacities of Cereal Crops Transshipment
According to the research, capacities of sea ports of Odessa region for grain transshipment are of
29,3 mln tons , that is 63% of the national volumes.
Assessment of theoretical capacity for the export transshipment of cereal crops via ports of
Odessa region, 2015, mln tons
Port
Ilichevsk Sea Commercial
Port
Ilichevsk Fishery Port
Yusniy
Odessa

Reni
Belgorod-Dnestrovskiy
Ust-Dunaysk, Port Sector
Kiliya
Izmayil
Total

Terminal
Transbalkterminal (Cernell)
Ilichevsk grain terminal
Glencore

Transshipment capacity
6,5
2,0

TIS
Borivage, Privat
Loading complex Brooklyn
Kiev
CJSC Ukrelevatorprom, ADM
PLC Inzernoexport
SE Odessa Port Elevator,
PLC Transterminal Company
Grain Complex OlympexCoupe/CHS
Grain Complex Reni Line
Grain Complex

0,8
7,0
2,0

3,5
0,3
2,0
0,5
2,0
0,7
0,5
1,0
0,5
29,3

Ukraine. Comparative characteristics of the major ports of the Black Sea for the grain
transshipment
Port

Ilichevsk Sea
Commercial
Port

Advantages

Disadvantages

- availability of three railway lines to the port

- deep-water quays and ability to load two vessels of
Panamax type simultaneously
- located in the sea harbor (no need to enter payable
channels, pay ice fees or clean channel bottoms)
- high level of terminal management

- insufficient capacities for grain reception from the

vehicles, this disadvantage automatically leads to
deprivation of cargo handling especially in comparison with
cargo receprion from railway carriages
- insufficient port area (with no possibility for further
expand)
- port additionally charges for vehicle admission to the
premises 0,35 USD
- geographical location will not allow the grain delivery
from Luganskaya, Donetskaya, Zaporozhskaya and
Kharkovskaya oblasts due to high expenditures for
transportation especially in comparison with Yuzhniy and
Sevastopolskiy ports

Yuzhniy Sea
Commercial
Port

Odessa Sea
Commercial
Port

- Deepest berths (possibility of loading Cape-size type

vessels)
- Presence of significant capacities for simultaneous
storage of grain (380 thousand tons.) And high
intensity loading (25 thousand tons per day.)
- High capacity to unload the grain delivered by road
- Technologically literate line unloading of railcars,
which provides fast unloading and has the ability of
(the possibility of building additional equipment to
unload more cars at the same time)
- Own railway branch and high bandwidth of railway
haul routes "Black Sea-Chemical" that allows to
increase the total freight traffic by 1 million tons
without the need for significant investment in track
facilities.
- Located on the shores of harbour (no need to pay the
passage channels, fee collecting ice, there is no need
for periodic dredging of channels)
- Deep-water port (13.8)
- Ability to combine a variety of loading options, the
high technical and technological possibilities
- High quality of services due to the high competition
among freight forwarders (15 Forwarders)
- Located on the shores of a tharbour (no need to pay
the passage channels, fee collecting ice, there is no
need for periodic dredging of channels)

- impossibility to load simultaneously several capsize

vessels by contrast with Ilichevsk port

- Limited reception of railcars due to insufficient capacity of

the railway capacity (1 rail track). Despite the fact that the
tensity of the port and the station was somewhat
eliminated by the construction of the railway to Grain
harbor entrance from the station park "Odessa Port" in
summer of 2003 , the construction of the 2nd entrance to
the port is an important issue
- Inability to port infrastructure development due to its
location in the city center
- Insufficient length of berths for loading large vessels (the
depth of the quay walls is sufficient, but the vessels often
have to occupy next berth space and thereby deprive it of
the proper operation)

Ports capacities for vegetable oil handling

According to assessment the capacity of vegetable oil handling in sea ports of Odessa region in 3,6
mln tons.
Assessment of potential capacity to handle vegetable oil in the ports of Odessa region, 2015,
mln tons
Port
Ilichevsk

Terminal
Ilichevsk Oil Refinery
Oil extraction plant
JSC "Odessa Port Load
Complex"
Terminal Delta Vilmar
JSC "AE Risoil Terminal"

Odessa
Yuzhniy

Handling capacity
0,5
0,8
0,3
0,5
1,5
3,6

TOTAL

Port reloading capacities for regrigerated and utilized cargoes

In Ukraine handling of container cargo is carried out in four sea ports (Odessa, Ilichevsk, Yuzhniy
and Mariupol) and one river port (Dnepropetrovsk).
On the whole the capacity of Ukrainian ports for handling containers in 4,6 mln TEU per year,
meanwhile half of it is distributed by pthe ports of Odessa region.
Ukraine. Assessment of Container Terminal in the Ports, thousand TEU
Port
Odessa

Terminal/Operator
SE Ukraine
MetalUkraine
Olympex Coupe

Thousand
TEU
2100
1000
1500

Ilichevsk
Ilichevsk Fichery
Yuzhniy
Mariupol
Dnepropetrovsk

Novolog
Brooklyn-Kiev-Port
Novotex-Terminal
Ukrtranscontainer
Privat
TIS

50
24
2100
1000
1500
50
24
2100

Odessa transport junction is one of the most powerful in the sphere of container handling in
Ukraine and is of 2,1 mln TEU approximately. Odessa port concentrates about 50% of container
capacity of the country.

Odessa port is a leader in handling containers, continuously it takes more than a half of the whole
container turnover including export.
Ukraine already possesses functioning terminals and areas for loading of cereals in terminals with
the employment of container port equipment.
In Odessa region as in the biggest transport junction for container operation in Ukraine there is a
possibility to handle cereals in container terminals or load containers with cereals in Odessa and
Yuzhniy.
Odessa region ports possess opportunities to handle refrigerated cargoes, fresh vegetables and
fruit.
Assessment of potential capacities of Odessa region terminals, 2015, thousand tons/year
Port
Odessa

Terminal
PLC Odessa Port
Refrigerator

Ilichevsk Sea Fishery Port

TOTAL

Transshipment Capacity
200
100
300

Assessment of potential capacities of vegetable and oil terminals in Odessa region, 2015,
thousand tons/year
Port

Terminal

Odessa

Ltd. Novoteh-Terminal
PLC Odessa Port Regrigerator
Ltd. Ukrainian National
Stevedoring Company

Ilichevsk Sea Commercial

Port
Reni
TOTAL

Transshipment
Capacity
300

50
200
550

Current Situation

Odessa region ports always have been in high demand due to their competitive advantages.
Therefore, in 2015 two ports of Ukraine took the leading places in volumes of cargo turnover:
Odessa port and Yuzhniy port.

Source: SE Administration of Sea Ports of Ukraine

Despite considerable growth of food cargo handling volumes ports of Odessa region still have a
wide leeway for further increase of cargo turnover.
Comparative table of actual volumes of food cargo handling in Odessa region ports
Cargo

Maximum volume of
handling, mln tons
23,9
2,6
0,3

Grain
Vegetable Oil
Food Commodities in
Containers

Available capacities for

handling, mln tons
29,3
3,6
4,6

Handling of grain in the ports of Odessa region, 2013-2015, thousand tons

Port
Belgorod-Dnestrovskiy
Izmail
Kilia
Yuzhniy
Odessa
Reni
Ust-Dunaysk
Ilichevsk
TOTAL

2012

5 776,47
5 805,87
154,50
11,00
4 486,40
16234,24

2013

2014

2015

11,46

65,69

138,40

6 165,26
5 481,74
454,28
18,20
3 835,51
15966,45

9 139,79
6 661,67
624,76
39,80
4 593,04
21124,75

9 763,30
8 615,44
245,98
15,40
5 088,49
23867,01

Source: data provided by SE Administration of Sea Ports of Ukraine

Handling of vegetable oil in the ports of Odessa region, 2013-2015, thousand tons
Port
Belgorod-Dnestrovskiy
Izmail
Kilia
Yuzhniy
Odessa

2012

421,58
185,85

2013

2014

2015

12,92

40,45

53,49

599,72
152,05

1 005,62
70,32

954,41
115,56

Reni
Ust-Dunaysk
Ilichevsk
TOTAL

2,9
12,92
1 366,42
2146,93

1 575,02
2182,45

1 498,22
2614,61

1 529,11
2652,57

Source: data provided by SE Administration of Sea Ports of Ukraine

, ,
, 2013-2015., .
Port
Belgorod-Dnestrovsky
Izmail
Kylya
Yuzhniy
Odessa
Reni
Ust-Dunaysk
Ilichevsk
TOTAL

2012

2013

2014

2015

6,40

5,73

15,32

29,48

243,39

218,64

67,56

25,91

5,70
255,49

8,00
232,37

29,10
111,98

25,20
80,59

Source: data provided by SE Administration of Sea Ports of Ukraine

Potential for development of port capacities in Odessa region

Sea ports of Odessa region due to their beneficial location and lucrativeness both for shippers and
exporters see further perspectives of development together with plans on further development of
capacities for handling of grain and oil crops or vegetable oil. There is a number of projects
declared in the ports of the region evidencing the above stated fact.
The biggest potential of development belongs to capacities for handling vegetable oil. Therefore,
according to announced plans Odessa region ports can increase theis capacities for vegetable oil
handling 77% to 6,4 mln ton in the nearest future, and in long-term perspective for another
7,8% - to 6,9 mln tons.
Significant point is also the potential for the development of transhipment facilities for cereals.
Thus, according to current plans, in the medium term up to 2020 capacity of ports of Odessa
region could increase by 33% to 39,1mln.t, and in the long term to 2030 - by almost 22% to
47,6mln.t.
When deciding on the development of grain and oil handling capacity at seaports companies,
potential investors and seaports shall be guided by the following factors:
- Steady growth of the world's population
- High production and export potential of Ukraine on grain and vegetable oil
- Good geographical position of the region's ports.
In addition, the major ports of Odessa region are demonstrating steady growth in the processing
of cereals and vegetable oil, as well as there is a strong demand for services for handling these
types of goods for export.
Potential development of container handling capacity is small, because currently due to lower
purchasing power of the population against a background of devaluation of the Ghryvna is
reduced imports of various goods, including imported products (vegetables, fruits, etc.). In
addition, the current situation in Ukraine as a result of the ongoing military operations in the East
of the country has also led to the fact that a large part of transit cargo in containers left for the

Russian Black Sea ports. As a result, in the ports of Odessa region container terminal in
constructed at Quarantine Mole with design capacity of 0,7mln.t TEU.
Even before the financial crisis of 2008 some experts pointed out that Ukraine and the Black Sea
region as a whole already have a permanent excess capacity for the processing of container
cargoes. Offer of ontainer terminal capacities in Ukrainian ports has reached a level of demand
already in 2005.
Assessment of food supply processing in sea ports of Odessa region, mln tons
Cargo
Grain
Vegerable oil
Food commodities in
containers, mln TEU

Available handling
capacities
29,3
3,6
4,6

Capacity potential up
to 2020
39,1
6,4
5,3

Capacity potential up
to 2030
47,6
6,9
5,8

Source: assessment by AkrAgroConsult

Projects of grain trans-shipping complexes in sea ports of Odessa region, 2015

Port

Project/Terminal

Odessa

Olympex-Coupe
Increased loading capacity
by installing additional
shiploader, construction of
a new station
avtorazgruzki, increased
storage capacity
MetalUkraine/OlympexCoupe
Creation of grain complex
at the berth 7, dredging
operations
Novotech-Terminal
Construction of elevators
for 110 thousand tons
Development of port for
transshipment of grain
through renewal of the
fleet of specialized
equipment (mobile and
vacuum loader),
development of port
infrastructure
AE RisOil
Grain terminal construction
PLC Trading House Grain
Harbour
Construction of births 33
and 33
PlC ..
Construction of birth 25
and reloading grain
complex
PLC Transoil
Construction of births
27and 27 and reloading
complex of cereal crops
Construction of reloading
complex for grain on the
premises of warehouse 6
PLC Davos

Izmail

Ilichevsk
Yuzhniy

Reni

Ust-Dunaysk

Potential capacity of
transshipment
500 thousand tons

Implementation period

500 thousand tons

2016-2018

500 thousand tons

2016-2018

500-700 thousand tons

2016-2018

4,5 mln tons

2016-2018

3,3 mln tons

2018

4 mln tons

2023

2,5 mln tons

2023

500 thousand tons

2023-2025

500 thousand tons

2023-2025

2016-2018

Construction of terminal
for reloading of grain in
Kilia Port

Source: data provided by companies and ports

Plans for development of port infrastructure for sea ports of Ukraine in the sector related to
transshipment of vegetable oils for the period to 2038
Port
Ilichevsk

Scheduled updates
Development of bulk platform
for vegetable oil

Yuzhniy

Construction of birth 34
and complex for handling of
vegetable oils
Source: SE Administration of Sea Ports of Ukraine

Expected results
Increase of volumes for
handling of 0,3 mln tons per
year
Increase of volumes for
handling 2,8 mln tons per year

Investor
Investor

PLC
Borivage

In recent years, Ukraine increases export shipments of grain, and it is not just about increasing the
volume of supplies, as well as to expand their geography. It is noted that Ukrainian grain is also
delivered to the countries of Southeast Asia. Researcher notes that the development of the grain
market of Ukraine in ongoing and its task is to meet the trend of the commodity market.
Development of grain transshipment port infrastructure for the export creates conditions for
further development prospects of agricultural production.
5.2.

Railway means of transport

Railroads of the region belong to the State administration "UkrZaliznytsia" and are related to the
Odessa railway nerwork. The length of the Odessa railway is 18% of the length of railways in
Ukraine. About 43% of the operational length of the highway Odessa is electrified lines, 73% of the
operational length of railways equipped with automatic block system, about 73% of the stations
equipped with electric centralization, the entire range of the railway operates train radio.

Railways of Ukraine

Source: official web-site of Railway Department of Ukraine

Operating length of the main railway line in the boundaries of Odessa region is 4013.6 km, the
following 1725 km of them are electrified. Railway 1038 is adjacent to industrial outs with the
length of 2131.9 km. There are 17 separate technological processes of the railway and access
roads.The main feature of the Odessa railway is its seaside and frontier position: shipment
through major maritime ports provide external economic relations with more than 70 countries
around the world.

Scheme of Odessa railways

Source: web-site of Odessa railway department http://odz.gov.ua/

Ukrainian railways service 18 seaports of the Black Sea and Azov basin. A number of port railway
stations do not longer cope with the volume of incoming shipments.
Port stations were built and equipped primarily for the processing of imports, which prevailed over
exports during the second half of the last century. But in future direction of the port operation has
changed radically with the processing of import to export.
Especially distinct changes are observed in the nature of work in the region's main ports - Illichivsk,
Odessa, Yuzhniy. The range of goods unloaded in seaports is significantly expanded. As a result,
the railway met dramatically increased volume of marshalling and shunting work on selection and
placement of wagons on multiple fronts and areas of ports.
Today we have a situation in which the processing capacity of port stations and bandwidth sites on
the approaches to ports are significantly below port processing capacity.
In addition, on the approaches to the sea harbours not all the zones are electrified, that is why the
cargo trains have to switch from electric haulage to the hot-wire. Besides, some directions require
construction of the second roure, because this traffic bed does not allow to transfer necessary
amount of cargo carriages.
Therefore, Odessa railway (OR) outlines that the complications with carriages unloading appear at
PLC "TransInvestService" (Chernomorskaya station), "Terminal-UkrKharchButSyrovyna Ltd
(Octyabrskaya station), PLC "Ukrelevatorprom" (Odessa-Port station).

In 2010 Odessa railway together with investors carried out construction of the second route and
electrified the passage Chernomorskaya-Beregovaya, this cecame the first stage to expand
throughput of this part of the route.
In addition, geopolitical transformations that are taking place in the Black Sea region for the last 2
years, have led to a change in the existing logistic routes of delivery of goods in Ukraine because of
the annexation of the Crimea and loss of the export port capacity, the export grain delivery system
has been reoriented towards the ports Large Odessa.
In 2015 PLC "Transinvestservice" (TIS), Ltd. "Borivage" and Odessa Railway (DWS) commissioned a
second mainline railway track 5 km long, as well as two receiving and departure tracks near
railway station Beregovaya next to the port of Yuzhny. According to railway service
representatives new infrastructure will increase the capacity of Chernomorskaya-Beregovaya line,
52 pairs of trains per day, which, in turn, will increase the volume of traffic for10 million tons of
cargo per year, and will solve the problem of bandwidth shortage in this area within the next 2-3
years.
The construction of new infrastructure was performed in terms of public-private cooperation: TIS
and "Borivage" financed the whole scope of works and provided all the necessary materials.
Construction operations were performed my meand of Odessa Railway Service and the
"Ukrzalyznustya". The total sum of investments was 11 mln dollars, that in opinion of the Minister
of Infrastructure of Ukraine Mr. Pivovarskiy was the maximum amount of private funding spent for
the development of railway structure.
Researcher outlines that this considerable amount of investment into railway infrastructure has
been performed by the companies of of grain loading sector and demonstrates its swift
improvement together with necessity of further continuous development.
According to the information provided by the Director of Odessa Railway Service in 20016 the
development of railway infrastructure in the route to Yuzhniy port shall be continued. In
particular, he was commenting on Chernomorskaya station part that shall be refusbished via
investment made by Greenterminal. New Reception Park and route shall be construted. The
next year construction of new vehicle park and four routes adjacent to Beregovaya station is
scheduled with investments made by PLC Berths of Komintern. PLC Allseeds Black Sea is
planning a construction of entry points of 30 km to Beregovaya station. TIS is also planning to
conslruct the second track from the check point to Khimicheskaya station in total with 30 km
length.
Continuous trade confrontation with Russia and various trade or transport restrictions for cargo
delivery have already had their impact upon many countries not onle of the Black Sea Region but
CIS countries too. The consideration of new routes for Ukrainian commodities leads to revival of
the project of the New Silk Road Ukraine China.
On the 15th of January 2016 the first demo voyage of container train started on the route UkraineGeorgia-Azerbaijan-Kazakhstan-China from Ilichevsk port. The first demo train in composed of 10
carriages. The expected time of transportation to the station Dostik on the border of KazakhstanChina will be 10-11 days. The estimated sea transportation would take 30-35 days on the route
China-Black Sea.

Source: Ministry of Infrastructure of Ukraine

New Silk Road route has been elaborated for several years and the project was initiated by
Kazakhstan, China and Azerbaijan. Ukraine is one of the options of the corridor, as goods from
China after they get to the Black Sea coast can continue their adherence to the EU either through
the territory of Ukraine or through the territory of EU member states - Romania and Bulgaria.
Thus, the ports of Odessa region may become a major focal point for handling large goods traffic.
The volume of traffic between Ukraine and Kitem in 2015 amounted to 25,480,000. Tons, which is
2.25 million tons or 11% more than in 2014, for the first time it was a record figure for the last 10
years. At present, China ranks first in export shipments from Ukraine, relegating Russia to the
second position (from the first position for the last five years.) - 15.9 million tons. According to
Ukrzaliznytsia, the Chinese route currently leads with a share about 90% in the structure of the
export turnover, mainly due to shipments of agricultural products.
5.3.

Automobile traffic

Odessa region incurs three European highway routes [9]:

highway E 58; Vienna - Bratislava - Zvolen - Koice - Uzhhorod - Mukachevo - Halmeu Sushchev - Iasi - Leuseni - Chisinau - Odessa - Mykolaiv - Kherson - Melitopol - Taganrog Rostov-on-Don
highway E 87; Odessa - Izmail - Reni - Galati - Tulcea - Constanta - Varna - Burgas - Tsarevo
- Malko Tarnovo - Derek - Kirklareli - Babaeski - Havsa - Kean - Gallipoli ... Edzheabad Canakkale - Ayvalk - Izmir - Seluk - Aydn - Denizli - Acpayam - Korkuteli - Antalya.
highway E 95. St. Petersburg - Pskov - Gomel - Kiev Bila Tserkva - Uman - Odessa ...
Samsun - Merzifon
Scheme of European highways of Ukraine

Source: Raster Maps

Transportation of passengers and goods by road in the Odessa region is carried out by 202
business entity with different forms of ownership, including 34 motor enterprises, 96 private
enterprises, 70 sole proprietors.
At the same time, as over the entire territory of Ukraine, the state of roads in the Odessa region is
insufficient. The length of highways of Odessa region is 8.3 thousand kilometers, meanwhile the
total coverage area with potholes, as of March 1, 2015 exceeded 1.2 million square meters. In
addition, almost 30% of the total length of highways in Odessa region is so damaged that needs to
be repaired not only on the road surface, but to its foundations. In general, according to the
navigation service Navizor.com, in the Odessa region the 47.03% of the roads are in critical
condition.
Chart of highway conditions in Odessa region

Green colour depicts highways in appropriate condition with even surface and more than two traffic
pathways

 absence of holes, the average speed is not less than 100 km/h
Yellow colour depicts highways with even surface and relatively comfortable transportation.

holes are not numerous and average speed is less than 100 km/h
Red colour depicts roads with damaged surface and dense traffic.

holes are numerous and the average speed is less than 60 km/h
: http://routes.in.ua/maps-ukraine/karta-sostoyaniya-dorog/

The critical state of roads generally leads to a decrease in the speed of delivery of goods, reduction
of road safety and environmental pollution. Consequently, the transport capacity of the region
and its attractiveness for market operators is reduced.
As the Ministry of Infrastructure outlines, the experience of previous years shows that with the
beginning of the harvesting campaign along the international motorways M-14 Odessa-MelitopolNovoazovsk and M-28 Odessa-South, on which the delivery of grain to the port, there are
kilometer queue trucks, complicating movement of vehicles and dramatically reduce the level of
safety on the roads.
The infrastructure of grain market of Ukraine launched with the active development of port
facilities for shipping grain to export. Further development of the infrastructure of the internal
market is initiated by ports and port terminals interested in a regular and uninterrupted receipt of
grain for export shipment. After all, the main factor limiting the possibilities of Ukrainian sea ports
for transshipment of grain for export, is imbalance between the capacity of the port and approach
areas for them.
In the major ports of Odessa region there is an active development of the access road ways, which
is carried out mainly by operators of grain and oilseed markets.
As many as three operators of the grain market - TIS-Grain, LLC "Borivage" and LLC "Delta Wilmar
CIS" reported on the measures taken to reduce the stress on the road at the entrance to the port.
OOO "TIS-Grain" and LLC "Delta Wilmar CIS" will lead to the construction of parking lots 1,5
thousand and 200 parking spaces, respectively. In addition, the port operator LLC "Borivage"
completed the construction of funded and parking for trucks with 300 parking spaces. In addition,
a group of companies owned by TIS on her territory completes the construction of a bypass
tarmac road connecting the highway M-14 and M-28, this would reduce the queue of cars waiting
at the port of unloading.
With the active development of port facilities in Ukraine there remains a problem of lack of access
infrastructure. Projects for the construction and upgrading of access roads are maintained by the
owners of port terminals to a limited extent, because these activities require substantial financial
costs and long negotiation period.
According to the results obtained, investment in the development of the domestic market
infrastructure can significantly increase the country's capacity to export grain. Finally, from a
technical point of view Ukraine is currently the largest in the Black Sea region in availability of
grain transfer facilities that is about 42mln.tonn. Development of the internal logistics system and
building of a stable delivery chain will load existing facilities.

5.4.

Air traffic. Discharging potential for parishable commodities

Today, the fastest means of delivery of goods is air. This type of transport is one of the most
profitable and essential means of delivery for transportation of perishable and high-value goods.
Fruit, early vegetables, berries, fresh fish, fresh flowers, biological, medical and other products
requiring temperature control are shipped by air.
Air transport in comparison with other modes of transport has several advantages in the
transportation of perishable goods. By air transportation is carried over long distances in a short
time, and as a result, the transportation of perishable products requires no special cooling. The
low temperature in the cargo space is required for compliance with the conditions of carriage and
is achieved by the circulation of cold outside air.
Odessa International Airport is located in the southwestern part of the city of Odessa. The distance
from the city center to the airport is 7.5 km. The airport covers an area of 570.3 hectares.
LLC "Odessa International Airport" is a joint venture established in November 2011, the Odessa
City Council and private investors "Odessa Airport Development", which finances the construction
of a new US airport terminal and infrastructure valued at $ 45 million...
Odessa International Airport belongs to the largest airports in Ukraine and is associated by air lines
with many cities of Ukraine, CIS and Western Europe, Asia and Africa.
Airport in Odessa offers cargo terminal, including the handling of perishable goods. The airport has
the necessary production resources for this:
Customs temporary storage warehouses (3 warehouses with a total area of 1500 m2, including
warehouse for the storage of hazardous and valuable cargo, low-temperature chamber with
temperature control from 0 to + 5 C);
special equipment for mechanical handling of cargo (container loaders, fork-lift trucks with load
capacity from 1.5 to 3 tons, container trucks, trucks with lifting basket, conveyor belts, rokly,
tractors);
highly qualified, trained and certified staff to work with dangerous goods
The development plans in the airport via installation of two deep-freeze chambers with
temperature control between 0 - 20 C, as well as a certificate for maintenance of dangerous
goods in categories 3 - 9.
According to the research, in 2015 cargo Odessa airport amounted to about 500 tons. Taking into
account the trend of recent years of declining traffic, researcher evaluates potential cargo
handling Odessa airport in 1 thousand tons and transshipment of perishable goods in not less than
500 tons.

6. Evaluation of export potential in sectors with account of industrial and

logistic potential
6.1.

Assessment of resource potential

Climatic and soil resources of the Odessa region allow to cultivate a wide range of crop and
livestock production. However, at present this potential is not used in full. The raw material
structure there is a steady trend of growth in the share of crop production. The main crops
cultivated in the region are wheat, barley, corn, sunflower and rapeseed. Wheat production can
fully meet the needs of mills in the area. Consumption of forage crops is relatively small due to
weak development of animal husbandry. This makes it possible to generate sufficient export
potential of grain crops.
High level of concentration of oil and fat enterprises enhances the export potential of the region
for the products of processing of oilseeds.
In animal husbandry, the main production is concentrated in the private sector, this reduces the
capacity of the region to export due to poor quality and quantity of output. In addition, due to the
shortage of raw meat and milk processing industry went into decline in the region. It should be
noted that the region is a leader in the sheep breeding and has all the resources for further
development, particularly given the significant demand from the global market, i.e. in the Arab
world for the products of sheep, both in vivo as well as as processed products.
A similar situation is observed in the fruit and vegetable sector. With sufficient soil and climatic
conditions, the sector is still largely developing in private households. In addition, the lack of
modern vegetable storage and processing enterprises does not allow the sector to develop fully
and to apply for the European and global export market. In these markets, the high level of
competition, fresh produce, besides its production should be controlled / certified accordingly,
that in the conditions of small-scale production is almost impossible. At the same time production
of fruit and vegetable by processing enterprises (concentrated juices, tomato paste, fruit puree,
canned food, etc.) is much more competitive. In this sector, the region has great potential, but it is
necessary to take into account the features and taste preferences to the prospective markets.
Available water resources suitable for the production of fish currently in use are not enough. With
sufficient investment the region has all the prerequisites to become a leader in the production of
valuable species of fish and their sprawn, which has a deficit in the global market.
6.2.

Assesment of export potential

Odessa region has unique for Ukraine export opportunities from the point of view of logistics, with
the most developed sea port infrastructure. The internal logistic component is in need of
modernization and development.
Export potential for grain is 2-3mln.tonn depending on the crop, for sunflower oil - about 250
thousand tons. In addition, there is a potential for export of fresh fruit (apples, pears, cherries,
peaches, strawberries, nuts) in case of improving the storage and transport system. At the same
time, the development of export capacity for meat and dairy products is possible in the conditions
of large-scale and cooperative production of raw materials, as well as the implementation of
quality standards of international level. A promising product for exports from Ukraine and the
Odessa region in particular is honey.

The fishing industry Odessa region also has a very high export potential for the valuable fish
species (particularly sturgeon) in case of the corresponding investment in the development of this
area.

7. Summary and recommendations. SWOT-analysis of industries

Livestock Farming
Strong points

Weak points

- Constant demand for products

- Favourable location
- The use of surplus grain and by-products of
agriculture
- More efficient use of existing resources
- Availability of raw materials for the production of
animal feed
- Availability of significant production capacity and the
potential to increase the productivity
- Backlog demand for meat and meat products
- Low self-sufficiency in the field of livestock
production
- High rate profitability of poultry and pork
- Short payback period of investments in the poultry
and pork

- Imperfection of large-scale agricultural production.

Predominance of the private sector in production
- Lack of quality control in the private sector
- The personnel problem in the industry: a lack of
highly qualified professionals with specific education
- Low rate of cattle profitability
- Lack of investment in the development of the sector
- Branding of products to be exported
- Long payback period of investments in cattle
breeding
- Lack of modern processing capacities
- Obstaclec to export to the EU due to regulatory noncompliance related to quality and sanitary standards
- Lack of government guarantees and incentives to
private investors
- High level of competition on foreign markets

Capacities

Hazards

- Use of new breeds with high genetic potential

- Production of potentially perspective livestock
products
- Use of own resources
- Expansion of the sales market
- Increase of export potential and its opportunities
- Introduction of intensive technologies
- Production of environmentally friendly products
-Production of a wide range of products to meet the
requirements of a market
- Creation and development of enterprises for the
production of value-added products (semi-finished
products, canned food, frozen products, Private Label,
etc.)

- Risks related to weather conditions

- Rncrease of import quantity
- Recrudescence of infectious deceases
- Development of bad reputation in overseas markets
due to the irregular supply, lack of quality control and
lack of demand for products.
- Changes in consumer preferences
- Low level of qualifications and the irresponsibility of
staff
- Increased production costs due to the growth in
rents and the cost of energy
- Reorientation of agricultural producers at a marginal
crop production and the closure of its structures in
the livestock sector

Horticultural Sector
Strong points
- Favorable soil and climatic conditions
to create a modern production of fruit and vegetable
sector with the deep processing of products in
demand, both domestic and foreign markets
- Unmet demand for fruits and berries. The low level
of self-sufficiency in the field of fruit and vegetable
products
- High margins;
- Investment attractiveness;
- The trend toward healthy eating;

Capacities

Weak points
- Low investment activity and investment hunger
- Lack of development of large-scale agricultural
production. The predominance of the private sector in
the production process
- Low level of manufacturing value-added products
- The low level of capacity utilization for processing
- Narrow market of fresh produce sales
- Insufficient attention to post harvest handling and
transportation of fruit and vegetable and berry
production, which ultimately reduces the choice of
channel sales and sales markets
- High degree of manual labor
- Low level of development of transport and logistics
infrastructure (spets.transport, production
equipment, refrigeration, storage and processing
equipment)
- High level of competition on foreign markets

Hazards

- High production potential

- Introduction of intensive technologies
- Reduced costs and increase the profitability of the
enterprise
- Production of environmentally friendly products
- Ability to expand areas for cultivation of fruit and
vegetable products
- Expansion of the sales market for the commodity
nomenclature with access to export positions
- Creation and development of enterprises for the
production of value-added products (semi-finished
products, canned food, frozen products, concentrates,
chips, Private Label, etc.)
- Cultivation of a unique product. Focusing on a
limited group of consumers
- Processing of the product including its own cooling /
freezing
- Improved product quality through pre-sale
improvements (packaging, sorting, packaging and
attractiveness etc.)

- Climatic risks
- Imported products pressure
- Seasonality of production. The risk of
overproduction
- Reorientation of agricultural producers at a marginal
crop production
- Negative reputation in overseas markets due to the
irregular supply, lack of quality control and lack of
demand for products
- Changes in consumer preferences
- Low level of qualifications and the irresponsibility of
staff
- Increased production costs due to the growth in
rents

Pisciculture
Strong points

Weak points

- Existence of significant capacities and the potential

to increase their productivity
- Demand for fish, including low-cost varieties
- A high rate profitability
- Short payback period of investments
-Start reforming the fishing industry as a whole and its
deregulation
- Availability of raw materials for the production of
feed for fish

- High degree of "shadowing" of the market

- Lack of material for stocking
- Personnel problem in the industry: lack of specialists with
specialized education
- Low level of domestic breeding
- Environmental issues (the status and quality of water in
reservoirs and groundwater, the water level in the reservoirs,
water pollution with toxic substances, etc.)
- Lack of the state program for lending aquaculture
- Loss of the internal market for (Crimea, ATO zone)
- Problem of the exports to the EU because of noncompliance with the quality requirements and veterinary
outdated standards for fish in Ukraine
- Weak level of development of transport and logistics
infrastructure (transport, production equipment,
refrigeration, storage and processing equipment)
- Preferential use of extensive technology

Capacities

Hazards

- High production potential

- Development of intensive technologies
- Improving the productivity of the ponds by
improving natural forage
- Reducing production costs and increasing the
profitability of the enterprise
- Production of environmentally friendly products
- Ability to expand areas for cultivation of varieties of
fish
- Expansion of the market for the commodity
nomenclature with access to export positions
- Creation and development of enterprises / plants for
the production of feed for fish
- Creation and development of enterprises for the
production of value-added products (semi-finished
products, canned food, frozen products, etc.)

- Weather and climate risks

- Sharp reduction or the loss of fish catch due to the spread of
unauthorized fishing or poaching
- Competitiveness with amateur fishery
- Low level of qualification and the irresponsibility of staff
- Increase in production costs due to the growth in rents and
the cost of energy
- Changes in consumer preferences due to the increased
demand for fish grown in reservoirs and rivers

SWOT-analysis of port sector in Odessa Region

Advantages
Good geographical location and proximity to key markets

Shortcomings
Lack of capacity of port railway stations in some ports

of agricultural marketing Development of port

infrastructure, including the availability of modern both
specialized and universal cargo complex
Developed access infrastructure, including roads and
railways
High potential of turnover growth
Hazards
Weather force majeure: adverse weather conditions
reduce the intensity of cargo shipping and handling,
increase unproductive downtime and loss of market
operators.
Changes in market conditions can lead to a loss of traffic
and, as a consequence, to the financial losses of the ports

Increased competition among exporters for access to

port facilities as a result of the loss of transshipment
facilities due to the annexation of Crimea

Capacities
Increase in freight by attracting new cargo flows,
including export and transit, provided the development
of Trans-Caspian transport corridor
Development of short sea cargo handling mostly in small
ports of the region, situated at the mouth of the Danube
river

SWOT-analysis of railway sector in Odessa Region

Advantages
Well developed infrastructure of railway sector in the
region
Proximity to the ports determines export oriented loads

Hazards
Changing market conditions can lead to the loss of
turnover and, consequently, to the financial losses of
ports
Weather force majeure: adverse weather conditions
reduce the intensity of shipping and handling, increase
unproductive downtime and loss of market operators

Shortcomings
High demand for grain handling services in sea ports of
the region leads to their high pricing
High load rates in stress hous can lead to standbys of
truck in the stations adjacent to the ports, in its turn this
may lead to loss of market operators
Capacities
Development of port entrance roads, update of loading
capacities can increase cargo handling indices and attract
considerable number of clients

SWOT-analysis of transport sector in Odessa Region

Advantages
Well-developed infrastructure of automobile sector of
the region
Export orientation and proximity to sea ports determines
the specificity of economic activities aimed at the
maintenance of international trade flows
Hazards
Weather force majeure: adverse weather conditions
reduce the intensity of cargo shipping and handling,
increase unproductive downtime and loss of market
operators.
Changes in market conditions can lead to a loss of traffic
and, as a consequence, to the financial losses of the ports

Shortcomings
Low quality highways
High load rates in stress periods can lead to lowproductiveness while anticipating for loading operations
and loss of market operators
Capacities
Increase of transport potential of the region, including
transit upon condition that the highways shall be
reconstructed and relevant legal provisions shall be
followed