At present, the craft producer identifies three problems in the adjika business:
- Production capacity and outsourced services.The producer expects to reach a production capacity of approximately 2,000 jars of adjika per month. Negotiations have already been held with one buyer who is ready to purchase 400 jars per month.«Large buyers that operate stores are capable of purchasing such a volume of products. In addition, the recipe and production technology for our adjika make it possible to produce sufficient quantities with the help of equipment to meet initial demand even if only one employee is hired. Our experience of producing it in a home kitchen proves this,» explains Ivan Marakhonko.
- Another major problem is customers’ inability to purchase large batches of products due to the threat of military action.It is for such buyers that the adjika stick format is being developed, so that customers can order a small quantity to try the product without spending a lot of money.
- Another problem is raw materials.This spring, the price of chili peppers remained at around UAH 150/kg, then rose as high as UAH 360/kg and above, with such prices recorded at markets. According to the craft producer, this was due to the chili season coming to an end and supplies being unavailable. In addition, global prices increased, which meant prices in Ukraine also had to rise.
Today, Ivan Marakhonko needs two types of equipment: a packaging machine and equipment for pasteurizing adjika. The total cost depends on the manufacturer and the needs of the business.
«We are currently developing the proper packaging technology, so the equipment may cost UAH 100,000–150,000. Part of the budget is needed to pay for the stick-packaging service. In other words, packaging a batch of adjika into 3,000 sticks, including the packaging material and the packaging service itself, will cost approximately UAH 80,000. Packaging adjika in glass jars is more expensive because of the higher cost of the containers,» notes Ivan Marakhonko.
The producer has developed an ideal recipe and process for producing adjika: raw material processing, particle size control, mixing, pasteurization and packaging. In total, the costs of such production will amount to approximately UAH 180,000–230,000, excluding the permits required to open the business.
For reference: CraftUP Ukraine is an educational and grant project for craft food producers, organized by the online publication AgroPortal.ua with the support of the Government of the Kingdom of the Netherlands in Ukraine. The project consists of several stages. The first was a study of Ukraine’s craft production market, based on the results of which a training programme was developed. Its participants included 40 craft producers from different regions of Ukraine.
Following the educational stage, 10 finalists were selected and are currently preparing for the final presentation of their business projects. In September, they will present them to the Expert Council. At the same time, the CraftUP Ukraine team is introducing the audience to the stories of all the finalists, while the participants themselves are taking part in individual mentoring sessions with industry experts.
Information about the project on the page of the Embassy of the Kingdom of the Netherlands in Ukraine
Viktoriia Polevyk, AgroPortal.ua