Unexpectedly, the news literally exploded the information space and became the top news of information agencies and social networks. NIBULON performed such a striped trip, having delivered 300 tons of delicious Kherson watermelons grown by domestic farmers along the Dnipro River for grateful consumers.
Of course, sceptics can search for various comments as long as they want, saying that there was a lot of fuss about watermelons. We can´t deny it: watermelons are not so important. The new joint infrastructure project is the most important thing. It will allow us to deliver high-quality products from producers to consumers timely, in more efficient and inexpensive way. The transportation along the Dnipro River is started both downstream and upstream.
On July 30, the non-self-propelled vessel loaded with the first batch of watermelons grown by 28 Kherson farmers left the berth of “Holoprystans’ka” branch, which was inaugurated on July 14 as a transshipment terminal for grain and oilseeds shipment on water transport.
Kherson region is still famous as a producer of large volumes of high-quality delicious, and what is more important nowadays, inexpensive fruit and vegetables – watermelons, apricots, peaches, tomatoes, pepper, aubergines, onion, garlic, etc. Because of the high cost of transportation, the price for the end consumer in the central region, and especially the northern region of Ukraine, increased three or even five times. That happened because someone could not afford to transport and sell them in Ukraine or sold for pittance or left the harvest on fields.
This year, nutrient water has helped Kherson farmers again, like a few decades ago. That was not irrigation which the local dry lands require but transportation along the Dnipro River. It will be much cheaper to deliver fruit and vegetables (as well as berries, as watermelons are also berries) on the territory of Ukraine. If there is transport to carry, the investments in irrigation will appear. Grow a lot and sell products in Ukraine and around the world, earn a fair price for your hard work, and enjoy your work, enjoy your life!
Head of Kherson Regional State Administration Andrii Hordieiev noted last year that water transportation of its products was one of the most important issues for Kherson region. He did a lot to implement this idea which was unfeasible at first glance; he was present when the non-self-propelled was loaded with Kherson watermelons. According to him, the logistic infrastructure created by NIBULON and the opportunity to transport Kherson watermelons, fruit and vegetables to the north of Ukraine and even to Belarus (along the Dnipro River and Prypiat River) will become a sharp intake of breath for the Left-bank Kherson region.
Hero of Ukraine, General Director of NIBULON Oleksiy Vadaturskyy supported this idea. In June 2017, 28 local farmers, NIBULON, Silpo retail chain, and Chemonics International Inc., with the support of the United States Agency for International Development (USAID), signed an agreement on cooperation at NIBULON’s transshipment terminal in Hola Prystan town as part of a pilot project “Creating an effective logistic chain of fruit and vegetables delivery”.
Due to a new waterway to deliver fruit and vegetables, Kherson farmers are able to significantly reduce their costs (the delivery is cheapened by 40%) and to expand the markets for seasonal fruit and vegetables.
The weather significantly affects watermelon consumption. People are thirsty, so the volumes of watermelon sale increase. Because of the lack of alternative modes of transportation, the transportation costs for road transport increase by 2–3 times in a “high season”. Difficulties with logistics and marketing cause the situation when about 30% of watermelon crop is left on fields. In addition, watermelons are loaded in bulk; 10-13% of them are mechanically damaged. Lack of packaging and transportation standards cause inconveniences for large batches. All these losses and expenses, which can be avoided, negatively affect buyers.
To explain all the advantages of this “striped trip”, it is necessary to follow the entire logistic chain. Watermelons are put into cardboard boxes of the European standard (products will be placed in these boxes at the supermarkets); they are placed on pallets of four in a truck. A crane loads the pallets to the bottom of a non-self-propelled vessel at the river terminal in Hola Prystan; a loader carefully puts them in rows. Then the non-self-propelled vessel is closed with a cover as if grain is transported. It delivers products by waterway without holes and potholes to the port of destination carefully and strictly according to schedule. The pallets with boxes are unloaded the same way with the help of a crane; later they are loaded into brand refrigerators of Silpo. Within a few hours watermelons are delivered to supermarkets, and buyers are pleased with high quality and price.
The first pilot trip of non-self-propelled vessel with watermelons from Kherson region to Kyiv region along the river is an opportunity for initiators of this infrastructure project to check how the mechanism works, how modern logistic and packaging standards are applied, how transportation costs and time are calculated. If everything happens as it was planned, there will be other vessels performing such trips. Upon successful completion of the pilot project, this logistic chain can be applied to other fruit and vegetables grown in Kherson region.
In the morning of August 4, the project participants and many journalists gathered at the berth of “Pereiaslavs’ka” branch. To satisfy the curiosity of the media, the project participants have answered all the questions.
“In fact, our pilot project is not just about watermelons”, said Patrick Rader, USAID project manager, “Above all, this is about river logistics, as well as about access of small producers to large retail chains. This non-self-propelled vessel is a test of a new supply chain we are helping to set up for farmers of Kherson region using the so-called M4P approach (Making Markets Work for the Poor), the USAID project.
He said that the project managed by him has shown weaknesses in the existing system of farm products supply and helped to unite the efforts of various players to build a new model that will be more efficient.
In turn, Maksym Didenko, head of Silpo “Fruit and vegetables” department said that they immediately have agreed to participate in this pilot project which fully corresponded to the goals and values of the chain. “Thanks to cooperation, we managed to create a new logistic chain to supply products to Silpo stores. At the same time, the logistics costs decreased, and we received products of higher quality due to minor damages of watermelons during transportation. In addition, as well as USAID, we support farms that produce various products throughout Ukraine. We get acquainted with farmers and present their high-quality products on the shelves of our stores”, he said.
The host of this, without exaggeration, holiday of understanding and delicacies Oleksiy Vadaturskyy was absolutely happy. “Dreams come true”, he said to the audience. “They come true if a person works hard and does everything to make them come true”.
Answering the questions about commercial benefits of this project, he stressed that this project was first of all a social one for NIBULON. After all, the company loaded the non-self-propelled vessel so it would not operate empty upstream. The non-self-propelled vessel will carry grain downstream the Dnipro River. “If we consider separately the project of fruit and vegetables transportation by inland waterways, then it is absolutely unprofitable in comparison with other modes of transport. Shipowners pay excise tax on fuel, pay lock dues, and pay for raise of drawbridges on the Dnipro River. All these dues make river transport uncompetitive”.
At the same time, Oleksiy Vadaturskyy explained that the company has agreed to participate in this project because the future of Ukraine depends on integration, cooperation of different food market participants, and river transportation. ¨This project will attract attention of politicians, economists, officials, and authorities to the fact that river transportation should be perceived differently. The way it is done in the USA, in Europe¨, he said.
According to General Director, the company can perform at least 50 cargo trips of 1,000 tons – 50,000 tons of various agricultural products per season. NIBULON can remove these cargoes from the roads of Ukraine and transport it by river transport, which is more efficient, profitable, and environmental friendly.
The watermelons have been thoroughly checked with the help of laboratory equipment for nitrates, salt of heavy metal, radionuclides. Kherson agrarians offer both well-known types of watermelons and relatively new ones – seedless watermelons.
“The laboratory of our terminal can determine GMO, pesticides, nitrates presence in agricultural products. There is the most modern equipment in our laboratory. We can do this and provide all the information. Therefore, buy Kherson watermelons without nitrates, pesticides, and GMO!”, called on Oleksiy Vadaturskyy.
Oleksanr Synenko, a Kherson farmer, director of ¨Aleksandr A. Synenko¨ PC, was a real promoter of his own products and products of his colleagues. He initiated cooperation of 28 producers of melons to form the batch quickly. He skillfully cut the watermelons that cracked under his knife, and entertained the guests.
Honorary guests and journalists liked the tasting. They had been taking more until there was enough strength. Connoisseurs said these watermelons had excellent taste. Now Kyiv residents should express their opinions.