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TOUR COMPLETION REPORT Aquaculture TOUR COMPLETION REPORT MTM Productivity Study Tour Program, USA Aquaculture from Kharkiv, Ukraine June 30 – July 20, 2003 USAID Grant #121-G-00-99-00728-00 Center for Economic Initiatives (CEI) Phone: 513-931-6741 E-mail: [email protected] Prepared by: Jeffrey L. Ashby i TABLE OF CONTENTS I. Executive Summary ..........................................................................................................1 II. Introduction .......................................................................................................................2 a. Overview.....................................................................................................................2 b. Background.................................................................................................................3 c. Candidate Selection ....................................................................................................6 d. Host Company Selection.............................................................................................7 III. Description of the Participants .........................................................................................8 1. Bohodukhiv Agro-Fish Coop - Yuri Kryvoshey ........................................................8 2. Izyum Fish Enterprise - Gennady Ryanskyy ............................................................11 3. Kharkiv Vodproyekt Institute - Vladimir Esakov.....................................................14 4. Krasny Oskol State Fish Farm - Mikhail Len...........................................................16 5. Lyubava Fish Farm - Izotova Lubov ........................................................................22 6. Neptun Ltd - Roman Babenko ..................................................................................25 7. Niva Farm - Igor Misevra .........................................................................................27 8. Pechenegei Fish Farm - Yuri Merson, Antonina Slobodchuk ..................................31 9. Private Enterprise - Victor Klyotz ............................................................................39 10. Private Enterprise - Andrey Rybakov.......................................................................41 11. Regional Administration - Aleksiy Cheknenko........................................................43 12. Scientific Production Center Ecomir/Poseydon Ltd - Yuriy Golub .........................46 13. Ukrainian Eastern Fish Co. - Oleg Lushchyk ...........................................................50 14. Vesele Farm - Zinaida Kaverzina .............................................................................54 15. Novovodolazhsky Rybkhoz Fish Farm - Nikolay Bezkorsy ....................................58 16. Participant Photos.....................................................................................................61 IV. Description of Host Companies ......................................................................................63 1. Freshwater Farms of Ohio - Dr. Dave Smith............................................................63 2. Freedom Feeds - Steve Massie .................................................................................63 3. Jones Fish Hatchery - No Host, Walking Tour.........................................................64 4. Various Seafood Retailers.........................................................................................64 5. Advanced Aquacultural Technologies, Inc. - Gary E. Miller, Ph.D.........................64 6. Purdue University - Paul B. Brown, Ph.D ................................................................64 7. Ohio State University - Laura G. Tiu, Aquaculture Specialist .................................65 8. Moreland Shrimp Farm - Dan Moreland ..................................................................65 9. Newport Aquarium - Peggy Sparks ..........................................................................66 10. Wolf Creek National Fish Hatchery - James Grey, Hatchery Manager ...................66 11. Kentucky State University - Steven D. Mims, Ph.D.................................................66 12. Shuckmans Fish Company and Smokery - Lewis Shuckman ..................................67 13. Graves County Processors/Growers .........................................................................67 14. Jungle Jim's International Market.............................................................................67 ii b. Other Visits...............................................................................................................68 V. Problems Encountered ....................................................................................................68 VI. Conclusions.......................................................................................................................68 APPENDICES...........................................................................................................................69 A. Logistics....................................................................................................................69 B. Detailed Program Schedule.......................................................................................69 C. Press and Media Coverage........................................................................................72 D. Center for Economic Initiatives Members................................................................77 E. Licensed Aquaculture Sites in Kharkiv Oblast.........................................................78 iii iv AQUACULTURE STUDY TOUR I. Executive Summary A review of the research that has been done recently within Kharkiv Oblast showed a significant increase in the aquaculture, or fish farming, industry in the last several years. This increase in interest is being partially fueled by a significant decline in the production of carp species, the staple of Ukrainian aquaculture, within the Oblast in the last several years. One of the indications of the growth and potential of this industry is the increase in the number of licenses issued by the Oblast government. Six years ago there were only six licensed aquaculture operations in Kharkiv Oblast, last year there were forty two licensed operations. Many of these farms are small and are in a position to strengthen the local economies of many towns and to increase the availability and diversity of seafood within Kharkiv Oblast. Based on this and other information, the Center for Economic Initiatives set out to develop an aquaculture tour funded by a grant from the United States Agency for International Development. The tour is based on the original Marshall Plan Technical Assistance Program. The Marshall Plan was implemented after World War II to help rebuild Western Europe. European economies had been damaged or destroyed, industry was low, and standards of living dropped. Through the Marshall Plan Program, not only did the United States provide grain, steel and other raw materials, but also provided technical assistance on a large scale. More than 24,000 Europeans visited the United States to learn about the modern ways in which industry operated. Today, Ukraine suffers from a scarcity of cost-oriented management and marketing technologies. Most managers usually focus on production, rather than on market-oriented tasks. One goal of the program is to help Ukrainian management understand that marketing and productivity enhancements are essential to improvement. The task is to help them learn new techniques that they can adopt in Ukraine. Towards that end, the Center for Economic Initiatives arranged a program that took the Ukrainians to companies in Ohio, Indiana and Kentucky. During their visits to these companies, the Ukrainians were able to learn improved techniques in technology, production, marketing and management. The host organizations made the Ukrainians feel welcome and showed them considerable hospitality. The host companies made themselves available for extensive discussions and were genuinely interested in listening to and answering all questions put to them, and providing study tour members with as much information as possible. It was an active tour group and very interested in learning how the American aquaculture industry works. Tour members were cooperative, well mannered and positive minded. They participated actively in various group discussions and asked many excellent questions, not only about the aquaculture industry but also about the United States in general. They took notes, photographs, videos and materials back with them. The experience of seeing the American aquaculture industry and culture close-up made a significant difference in many of the members perceptions compared to what they had heard about America. They were exposed to many new ideas, not only in production, but also in marketing, technology, and management. We were also greatly encouraged by the bonding that took place among tour members. There appears to be genuine interest in working together in the future to build a better Ukraine. 1 II. Introduction Kharkiv Oblast is located in the Northeast section of Ukraine. It is 310.7 miles East of Kiev, the capital of Ukraine, and is approximately 435 miles Southwest of Moscow, Russia. Its is comparable in size to the countries of Albania or Belgium, or to the American states Vermont or Maryland. The location of Kharkiv Oblast makes it important in terms of transportation between the Black
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