FAO and the European Union provide grants of up to USD150 000 to support aggregation models in berry and vegetable production

On 17 February 2025, the Food and Agriculture Organization of the United Nations (FAO), with the support of the European Union (EU) and in close collaboration with the Ministry of Agrarian Policy and Food of Ukraine, is launching a new window within the third cycle of its grant programme that will be focused on supporting aggregation models¹ in agriculture. The programme will assist small and medium-sized agricultural enterprises in developing aggregation models that would improve the integration of small farmers into specific supply chains, enhance storage and processing capacities as well as improving access to domestic and international markets. Applications can be submitted through the State Agrarian Registry (SAR) until 17 March 2025.

This initiative is a pilot that aims to strengthen the commercialization of agriculture production in selected locations and agrifood value chains. By promoting combination and cooperation between small and medium-sized agribusinesses, market access will improve and supply chains will be more resilient. Through aggregation models, farmers can collectively process and store their produce, ensuring higher quality, improved food standards and better pricing, which ultimately contributes to the long-term sustainability of the agricultural industry in Ukraine and better livelihoods for rural communities.

"This new window of the FAO–EU grant programme represents a significant opportunity for farmers to scale up their operations, enhance competitiveness, and establish more sustainable business models. We encourage all eligible producers to take full advantage of this initiative to incorporate small farmers into larger supply chains, ensuring long-term benefits for Ukraine’s agrifood system," said Vitalii Koval, the Minister of Agrarian Policy and Food of Ukraine.

To qualify for the programme call, agricultural producers must demonstrate their capacity and commitment to effectively engage small farmers into their business models through fair purchasing agreements and training programmes. The applicant should be able to provide access to essential infrastructure such as storage facilities, packaging and logistics services for small farmers. Additionally, applicants must contribute at least 50 percent of the investment cost, demonstrating their commitment to engage in sustainable business growth and market integration in their respective locations.

The programme is open to producers from Lvivska, Zakarpatska, Ivano-Frankivska and Chernivetska oblasts. Priority will be given to enterprises that use environmentally sustainable practices and innovative business solutions that contribute to the modernization of Ukraine’s agrifood sector.

"FAO is committed to supporting agricultural enterprises that adopt inclusive agrifood value chain approaches and effectively integrate small farmers into their business models. With support from the European Union, we are not only providing financial assistance to scale up these models but also fostering stronger, more inclusive food value chains in Ukraine. By investing in aggregation models, we facilitate greater economic stability for small farmers, helping them access new markets and benefit from improved logistics and processing capabilities. Our goal is to build resilience and promote a more competitive agricultural sector," said Mohammed Azouqa, Head of FAO Office in Ukraine a.i.

The programme also aims to enhance food safety standards, ensuring that aggregated products meet quality requirements for both domestic and international markets. By supporting investments in post-harvest handling and processing, the initiative will help agrobusinesses reduce losses, extend product shelf life, and meet buyer expectations. 

"The European Union remains steadfast in its commitment to support Ukraine’s agricultural sector. Through this initiative, we aim to enable Ukrainian farmers to modernize their businesses, strengthen cooperation within agricultural value chains, and create long-term economic opportunities. Small farmers are the backbone of Ukraine’s rural economy, and by promoting aggregation models, we help agribusinesses scale up while ensuring that small farmers remain competitive and actively participate and benefit from inclusive businesses models. This programme is part of the European Union’s broader strategy to strengthen Ukraine’s food security, enhance rural development, and facilitate the country's integration into European markets," said Stefan Schleuning, Head of Cooperation at the European Union Delegation to Ukraine.

Beyond financial assistance, this programme will provide technical support and mentorship. Successful applicants will gain access to expert consultations, training sessions in various topics, including access to financial services, and guidance on sustainable business management and value chain integration. FAO will assist in developing long-term strategies that enhance operational efficiency and create new market opportunities for smallholder-inclusive agribusinesses.

Since 2023, under this EU-funded initiative, FAO has allocated USD 2.8 million, the equivalent of EUR 2.67 million, to 237 Ukrainian agricultural producers from Lvivska, Zakarpatska, Ivano-Frankivska and Chernivetska oblasts. This funding has improved farmers’ access to funding and technical support, enabling them to invest in critical tools, green technologies, and infrastructure to sustain and enhance their operations.

¹An aggregation model in agriculture refers to a business approach where small-scale farmers or producers come together—either independently or through collaboration with larger agribusinesses—to collect, store, process, and market their produce more efficiently.