How did more than 100 Ukrainian agricultural producers break into global markets and sign 803 export contracts during wartime?

The answer from the U-Food Association in Cherkasy region: by объединing into product value chains and acting under a single national brand. Through the “U-Food 2Chains” mechanism, comprehensive consulting on EU standards, and impactful participation in over 50 international exhibitions (such as Grüne Woche), the cluster reduced SMEs’ marketing costs and turned competitors into reliable partners. Cooperation became not just a strategy, but a condition for survival and growth in Ukraine’s agri-food sector.

“Today, the Ukrainian flag at international exhibitions is a sign of quality and resilience. But to turn buyers’ interest into real contracts, local producers must consolidate. Collective stands, joint export batches, and unified quality standards are the only way for Ukrainian SMEs to conquer global markets,” — Bohdan Serhiiovych Shapoval, CEO of the Ukrainian Food Association.

Practice Passport

Practice Title	Development of export value chains through collective marketing and consulting (U-Food 2Chains)
Cluster / Source Organization	Agro-food cluster Ukrainian Food Association (U-Food)
Region	Cherkasy region (with scaling to the national level)
Implementation Period	Ongoing (since 2020; active phase 2022–2025+)
Cluster Maturity Level	Cluster initiative
Number of participants	137, including 115 SMEs
Thematic Areas	Value chain development, SME services, joint marketing, wartime adaptation
Target Audience	Large agro-food and manufacturing clusters uniting many small producers of similar products; a solution to overcome limited export volumes and high marketing costs

Context and Problem Addressed by the Practice

Ukrainian small and medium-sized food producers often have excellent products but face a “glass ceiling” when attempting to export independently. Barriers include complex EU certification requirements, lack of international marketing expertise, high exhibition costs (tens of thousands of euros per stand), and the inability of a single SME to ensure stable large-volume supply.

Before the practice, export attempts were isolated and often unsuccessful. Producers in Cherkasy region viewed each other as competitors, preventing cooperation even for basic consolidated shipments. The 2022 war turned these challenges into a survival crisis: traditional logistics routes collapsed and domestic demand dropped sharply. The choice became clear — either export collectively or shut down businesses.

Description of the Practice Mechanism (“What’s Under the Hood”)

U-Food implemented an ecosystem approach where individual interests are aligned with group success.

Key elements:

• 2Chains program (value chains): Companies unite into product groups (e.g., honey, berries, canned goods), enabling standardized quality and large, stable supply volumes attractive to international buyers.
• Export consulting center: The cluster provides knowledge-sharing and support in certification (HACCP, GlobalG.A.P.), packaging adaptation, and marketing tailored to EU and other markets.
• Unified U-Food brand: The main cost-saving tool. The cluster organizes joint stands at major global exhibitions, significantly reducing costs for individual SMEs while increasing buyer attention.

Cluster management acts as an outsourced export department for 137 companies: negotiating, attracting donors, organizing logistics for exhibition samples, and coordinating joint production.

Resources and Preconditions

The practice relies on mixed financing: participant contributions combined with grants from international organizations and government programs.

A key prerequisite is strong cluster management capable of coordinating a large network and communicating effectively with international partners. Trust among producers is essential, particularly regarding fair distribution of orders.

Results and Outcomes

The results are significant:

• 803 export contracts signed during wartime
• Participation in 52 international events
• Organization of around 50 B2B events domestically
• At Grüne Woche 2026, the U-Food stand generated over 1,700 leads and conducted 18,000 tastings

Qualitative changes:

• Cultural shift: From hostile competition to partnership-based cooperation
• Behavioral change among SMEs: Producers proactively adapt to EU requirements, improve packaging design, and enhance quality
• Reputational impact: Ukraine strengthened its image as a reliable food supplier capable of fulfilling contracts even during wartime

Sustainability of the Practice

The practice is fully sustainable as it benefits all parties:

• SMEs gain contracts otherwise unattainable individually
• The cluster maintains a clear structure and long-term donor partnerships

Its systematic approach ensures continuity regardless of short-term project cycles.

Limitations and Risks

Logistical instability: Border blockages or infrastructure damage require constant crisis management and alternative route planning

Standardization risk: Managing 137 producers is complex; a single quality failure can damage the entire U-Food brand’s reputation

Lessons Learned and Recommendations for Clusters4Regions

Key lesson: One producer alone cannot succeed in exports — scale and recognition are decisive.

Recommendations:

• Move from theory to “quick wins”: Joint participation in exhibitions, shared catalogs, or collective visits to retail chains deliver contracts faster than long strategic planning
• Leverage donor support (USAID, GIZ): Projects combining multiple actors in a value chain (e.g., farmer → processor → brand) are more attractive for funding
• Strict standard alignment: Before selling together, establish unified internal quality standards — essential for joint export batches

The presentation of the case study is available via the link:

This practice has been included in the Ukraine Best Practice Guide, which we are developing as part of the Clusters4Regions project.

To be among the first to receive the full version of the Guide, please complete the short pre-registration form.

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Clusters4Regions is an initiative aimed at designing and implementing cluster programs in six regions of Ukraine (Vinnytsia, Volyn, Sumy, Odesa, Khmelnytskyi, and Ternopil regions). The initiative is implemented by the Ukrainian Cluster Alliance at the request of the Ministry of Economy, Environment and Agriculture of Ukraine, with the support of the Swiss-Ukrainian project “Ukraine`s Cohesion and Regional Development” UCORD, and is aligned with EU priorities, international donor frameworks, and Ukraine’s recovery agenda.