Wholesale Markets

The Ukrainian government thinks it can promote the sales of Ukrainian agricultural products by organizing wholesale markets. One wonders whether organizing such markets couldn't be a profitable activity. As far as I can understand, in Belgium such auction sites were established in the 1940s and 50s by the farmers themselves as cooperatives. On the website of one such Belgian wholesale market it is explained that the goal of these sites is to allow farmers to have more control on prices.

The official reasoning in Ukraine, as set out in this article reads as follows:

"According to the official, the program for construction of a network of wholesale markets that the government started last year will be a rather tangible stabilizing factor that will allow structuring the vegetables market and regulating it in the future.

Rozgon forecasts that with the help of those markets it will be possible to considerably cut the volume of imported agricultural products to Ukraine. He explained that for today, Ukrainian supermarkets are engaged in the sale of imported products, since as distinct from Ukrainian products, they are supplied in clearly defined volumes, in clearly defined terms and with clearly defined quality.

According to the official, in Ukraine activities on such terms is impossible, however formation of the network of wholesale markets will help ensuring accumulation, storage and promotion of products in compliance with the European, as well as world norms and requirements."

According to this article, the government plans to invest one billion in these markets.