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MIM-KYIV PRESNTS RESEARCH RESULTS ON FOOD STAPLES IN NEWLY LIBERATED TERRITORIES

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News of the business school

MIM-Kyiv presented the findings of its research project, "Business Development Bake-4-Ukraine," commissioned by the Perspectiva 21.3 charity and funded by the Netherlands government. The aim of the research was to establish micro and mini bakeries to address the critical food shortage, particularly in the Southern and Eastern regions of Ukraine. In these areas, approximately 90% of large bakeries have been destroyed or rendered inoperable due to the ongoing war. The establishment of smaller-scale bakeries not only addresses the immediate need for food staples like bread but also promotes self-employment and generates income in the affected areas.
The initiative, "Bake4Ukraine," was launched by Andrii Vasylenko and his wife Arenda Vasylenko Van De Rey, who is from the Netherlands. The initiative focuses on helping individuals with Down syndrome, autism, and intellectual disparities by providing them with suitable vocational training, such as baking. Their bakery in Brovary serves as a training facility, and their experience greatly influenced our project. The Dutch government provided immediate support for our endeavor, stated Andrii Sosnovsky, the research supervisor and MIM-Kyiv faculty member.
MIM-Kyiv conducted the research from scratch, starting with a feasibility study, followed by field research, and culminating in the development of comprehensive and ready-to-use business models. These models encompassed various aspects, including recipes, equipment procurement documentation, remuneration schemes, and taxation considerations.
The team reviewed pre-war statistics and gathered the latest data on temporary displacements throughout Ukraine. The analysis revealed that the most promising areas for this type of business were in the South and East of Ukraine. The team also collected extensive data on the bread supply and demand in the newly liberated territories, where it served as a temporary substitute for other food sources.
"Easter and Southern areas, particularly those that have been recently liberated, are facing food shortages. While volunteer and donor aid provides immediate relief, the establishment of small, family-run bakeries represents a sustainable and practical solution," shared Andrii Sosnovsky, drawing from his experience.
The Dutch government plans to support the implementation stages of the project and involve partners. According to the research results, the launch of 600 micro and mini bakeries would require 40 million Euros, and the implementation phase may span two to three years.
"These bakeries provide both nutrition and job opportunities with salaries commensurate with the regional standards, along with the associated tax contributions. Each bakery typically requires a team of 10 to 16 individuals, most of whom are self-employed and pay taxes as sole traders. We have developed a comprehensive documentation package and recommendations, which will soon be made available on Dutch government resources for anyone interested in starting this type of business," explained Andrii Sosnovsky.
 
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