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Success Story
New strategies help
make the transition to a
free-market economy
A Free Market Brings Fresh Produce
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Photo: Oksana Koulakovska, AMP
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A Rukavychka customer picks fresh
produce.
“The quality of the fresh
produce here is always high,
and they have a variety of
fruits and vegetables,” said
Oksana. “Now, instead of
wasting my time searching
for products at bazaar, I
always come to Rukavychka
and find everything I need.”
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As a vegetarian, Oksana Bondarivska has always had problems finding fresh quality produce. Although there was a small bazaar nearby and several small retailers who sold produce occasionally at the bus station, the assortment and quality were disappointing.
Then, about a year ago, she discovered Rukavychka, a new
supermarket with a produce department that satisfies her
needs. “The quality of the fresh produce I get here is always
high, and they have a variety of fruits and vegetables,” she
said. “Now, instead of wasting my time searching for one
product or another at the bazaar, I always come to Rukavychka
and find everything I need.” A wholly owned subsidiary of
Lvivkholod, Rukavychka introduced a fresh produce section
thanks to a recommendation from USAID.
Established during the Soviet era, Lvivkholod was mainly a
wholesaler of bulk frozen meat and fish products.In the early
1990s, with Ukraine’s economy transforming and marketing
channels collapsing, Lvivkholod had to establish a new way of
doing business or disappear. After privatizing, Lvivkholod
overhauled its ways of doing business and decided to expand
into retail. It reorganized its storage facilities and began
modernizing its offerings.
In 2003, still looking to find its market niche, Lvivkholod opened
its first Rukavychka supermarket. It was then that the company
began working with USAID on agricultural marketing. Project
specialists advised the company on modern wholesale and
retail practices and helped it develop marketing and strategic
plans, including setting up a produce department to better meet
customers’ needs.
In December 2003, Lvivkholod placed fruit and vegetable
displays in Rukavychka, then opened five more stores with
fresh produce sections. Today, these modern supermarkets sell
about 2 tons of fruits and vegetables each week, and USAIDsupported
farmers supply 20–80 percent of the produce
depending on the season.
Its emphasis on product variety has made Lvivkholod stand out
among competitors and survive the difficult transition from a
planned economy to a free-market enterprise.
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