Since 1999, FIELDFARE has undertaken investment in four projects in the Lower Danube region of Ukraine, largely through its local joint-stock subsidiary, Salix Ltd. These projects are:
Additional information about them is available in the shareholder updates on the download page.
More detailed information about the projects, and other similar investment opportunities, are available on request. Potential investors are referred to the Investor Information page.
Agricultural activities in the Lower Danube region are mainly focused on producing cereals (wheat and maize), oil seeds (mainly sunflower), vineyards, fruit, some vegetables and water-melons. Animal husbandry comprises of rearing dairy and beef cattle, sheep, pigs and poultry. About 65% of the land area in the Lower Danube region is occupied by agriculture, although the region lies in an agricultural risk zone which suffers prolonged drought periods; only about one year in five produces good crop yields under natural conditions.
Accordingly, large areas of agricultural land rely on irrigation, but excessive over-abstraction and inappropriate irrigation methods have led to groundwater over-exploitation, water logging, erosion and salinisation. Agricultural land is also significantly affected by agro-chemicals used on irrigated crops, oil seeds (rape and sunflower), in viniculture, and orchards. Mineral fertilisers, where used, are applied at rates of 0.8-1.0 t/ha, whilst pesticide sprays were applied at rates from 3.3 kg/ha to 5 kg/ha (for irrigated areas). Such practices are at best unsustainable, and in some cases highly dangerous, from an environmental perspective.
As a result, all the aquifers are contaminated to some extent by pesticides and nitrogen compounds. In the Lower Danube region, crop diversification is generally low and rotation is hardly used. This reduces yields and can lead to increased levels of weeds and pests - biological pest control is less effective when crop rotation is not used. The absence of crop rotation also has a negative effect on soil structure and fertility.
Throughout Ukraine, the agriculture sector has witnessed major reform as land ownership has shifted increasingly to the private sector and the establishment of a land market. However,since most land previously managed by state farms (kholkhozes) are now leased and managed by private companies (generally comprising the former administrators), the farms still resemble their former conditions with large field sizes, limited range of crops and rotations, and decrepit machinery.
Nevertheless, the liberalisation of the land market (set to start in Ukraine in 2005), and the reform of the legal status of enterprises can also be important for the process of developing and implementing environmentally sustainable agriculture practices in the Lower Danube region. Furthermore, organic production in the Lower Danube region is gradually expanding, building on a base of de facto non-use of agrochemicals during the last decade. Indeed, a few farms in the Lower Danube region have become or are becoming certified organic producers under the EU organic production regulations.
In order to stimulate the local agricultural community to evolve towards sustainability, FIELDFARE has been working with such local pioneering organic farms to form an association and assist them obtain EU-recognised certification. The aim initially is to produce organic sunflower, which can be locally processed to make high-quality oil.
Since 1998, FIED has focused its attention on the Lower Danube region. With its wetlands, steppes and forests straddling the borders of Ukraine, Romania and Moldova, this region is one of the most outstanding areas in Europe for its natural, historical and cultural assets. With most of the area already, or scheduled to be, declared Biosphere Reserve and natural World Heritage Site, there are great opportunities for encouraging sustainable development through ecotourism. However, to prevent damage to biodiversity this requires sensitive investment in accordance with the Global Code of Ethics for Tourism recently produced by the World Tourism Organisation.
In 2000, in association with WWF and the European Centre for Eco-Agro Tourism (Amsterdam), FIELDFARE prepared a preliminary strategy for improving the infrastructure for ecotourism in the Lower Danube Region, focusing on the extensive local protected area system.
A more detailed FIED Strategy for Ecotourism in the Lower Danube Region was prepared in July 2002, based on experience from two pilot tours conducted in 2001, and a first commercial tour in May 2002. It sets out a framework for activities to promote the area as a desirable place for nature-based holidays. In addition, the implementation of the strategy will achieve the aim of "tourism for biodiversity" by providing a range of benefits for the region, including:
= Generation of income for local people
= Raised awareness of the value of local nature for attracting tourists
= Policy development and intervention to forestall intensive tourism development
= Conservation and restoration of natural areas
= Knock-on benefits for promotion of organic agriculture and energy efficiency
The investment plan to implement the Strategy covers the period from 2003 - 2012 and is expected to have an internal rate of return of 23%.
As a part of the strategy, has purchased a building of 250 sq.m. near the Danube boat station in the town of Vilkovo which is being renovated as an Ecotourism Information Centre.
Because of a long period of mismanagement and high nutrient inputs that encouraged algal growth, the wild fish stocks in the Danubian lakes had declined to a very low level by the mid-1970s. Stocking with exotic species commenced, and today the local fishery is dominated by grass and silver carp from China.
However, these fish require high investments (especially electricity and food) for rearing fingerlings and, at the same time, command the lowest prices in the markets. Consequently, the fish economy is in depression and some rearing ponds near to Lake Kartal (a Ramsar wetland) are now abandoned.
FIELDFARE has worked with local fish companies to prepare an investment proposal for improving water quality by establishing a sport fishing centre. Unused fish rearing ponds will be relandscaped and stocked with game fish such as wels catfish, common carp, and pike. Basic but adequate accommodation will be constructed for anglers.
The plan would not only provide much-needed employment and profits for local people, but also demonstrate the value of restoring the lakes to a natural state and regenerating the former wild fish stocks.
The Lower Danube region has considerable resources of renewable biomass (reeds, willow and poplar), yet at the same time has a fuel deficit which encourages felling of the valuable Danubian riverine forest.
In cooperation with an American manufacturer of biomass briquettes, and funded by WWF, FIELDFARE has carried out a technical and economic study of the potential for producing fuel pellets from biomass, much of which could be generated from protected area management operations.
The study indicated that while there were few technical hurdles and considerable ecological benefits from biomass pellet production (e.g. carbon neutral and maintaining healthy reedbeds), the likely prices in the local markets for such a fuel would be too low to generate a return on the investment required. However, there are opportunities for attracting development grants and exporting fuels to power stations upstream on the Danube. The company is now investigating these possibilities.
