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The 1992 Agribuiiness Centers Project 



I am pleased to liave the opportunity to discuss our experience in opemiog Agribusinesf 

 Centers for Russia and Ukraine during 1992. The concepts that guided the organization of the 

 Agribusiness Centers were developed from conversations with Russian and Ukrainian farmers, 

 agricultural officials, and members of the academic and educational institutions serving agriculture 

 in these countries. During the organizational period for the Centers, we also visited extensively 

 with U.S. agribusiness firms operating in the former Soviet Union (FSU) and with small- and 

 medium-sized agribusinesses interested in exploring commercial opportunities made possible by the 

 transition of the FSU to a market economy. 



In our early conversations with the Russians and representatives of othar nations of the FSU, 

 the ideas put forward were often cast in terms of 'demonstration farms.* At first we misunderstood 

 their interest, rbinking that our counterparts were recommending the duplication of a typical 

 midwestem farm in Russia, for example. Instead, our coimterparts were requesting demonstrations 

 of modern, successful tedmologies and management methods and introductions to market economic 

 concepts on a very practical basis. From these demonstrations and trainii^ sessions, the farm 

 operators and agricultural officials could appropriate the techniques and approaches most useful in 

 their special situations. In short, our counterparts wanted access to information on technology, 

 managemem methods, and market concepts that they could utilize in addressii^ problems of 

 adjustment created by the economic transition. 



FmuUnff The Agribusiness Centers were initiated utilizing multiple sources of funding and in-kind 

 resources. Specifically, a $500,000 grant was obtained from the Trade and Development Program 

 (agency). The Iowa International Development Foundation (IIDF), Iowa State University QSU), tad 

 private-sector agribusiness firms and farm operators contributed funds, time, and equipment. Also, 

 in mid 1992, a grant to acquire grain storage, processing, and handling equipment was obtained 

 from the MIS Task Force of the U.S. Agency for International Development. The funding and/or 

 resources acquired to support the Center were as follows. 



Trade and Developmem Program (agency) $500,000 



US. Agency for International Development 500,000 



Private agribusinesses 396,673 



Iowa &rmers 69,250 



Iowa International Development Foimdation 400,000 



Iowa State University 50,000 



U.S. Department of State 1.000,000 



