In the Component Description is mentioned a number of assumptions like macroeconomic stability restored, measures to mitigate the negative effects of the financial crisis implemented, the Financial Services component implemented, various banks in Lviv Oblast developing credit products, and a strong willingness among authorities to attract new investments. None of these preconditions were met. Later on, in the Inception Report, is mentioned even more assumptions, like that there will not be extreme price fluctuations, there will be reasonable political stability, no large changes in agricultural or trade policy, and no dramatic changes in exchange rates. Most of these assumptions were not met either.
The programme interventions had a pragmatic, dynamic approach to value chain development. The Facilitating Office staff was led by its experiences in the field and the feedback from the private sector that the programme was to support. In that way, there was better adoption. The changes in approach came about gradually, in good dialogue with Danida.
The programme closure report mentions four important factors that influenced the programme: the considerable political, economic and fiscal changes; a drought in 2010; access to rural finance still being a major constraint; and that (fortunately) the average milk price has not fallen (despite the closure of the Russian market).
In the end it was one handful of factors that really influenced the programme – and even those did not cause it to fail. The main reason for this is that there was a diverse market for the produce. When one outlet did not work out, the producers were able to find another market. In such a situation production and marketing simply continues.Top