Ukraine region ups food processing

Feeding a growing economy and increasing investment from overseas companies, the Odessa State Regional Administration reported that in 2003 meat processing grew by 42.3 per cent, fish processing by 34.6 per cent, fruit and vegetable processing by 46.2 per cent and the production of alcoholic beverages by 28.4 per cent. Sugar processing is also another important industry for the city and production was said to have increased by 1.7 times.

The national average increase in the processing of food and agricultural products in the Ukraine last year was 22 per cent. This figures reflects the huge growth the sector is experiencing throughout the country, but also emphasizes how the Odessa region is outstripping even the significantly high national average.

Odessa borders the black sea and has a population of 1.1 million people, making it the fifth largest city in the Ukraine and the conurbation along the black sea. Including the surrounding administrative districts and suburbs the population is an estimated 2.5 million people.

There are a number of major global food processors that have invested in the region lately, the most prominent being Heinz, which specializes in the manufacturing of liquid and dry baby food.

The region is a major industrial belt for the Ukraine and currently provides a significant amount of the country's heavy machinery, mineral and fertilizer products. Currently around one third of its output is attributed to both agricultural, food and beverage product processing.

Total production volume for the Odessa region was up 18 per cent in 2003, to UAH 5,621 million.

The driving force behind the major increase in output for the agriculture and food processing sector has been significant investment from companies overseas - namely US and western European companies. In 2003 an estimated 14.8 per cent of total investment in the region went into this sector, accounting for $988.3 million (€819m).