Halyna Movchan and her husband, who live in the tiny village of Ivcha in Vinnytsia Oblast, are raising three grandchildren – two in grade school and one who recently graduated – on combined monthly pensions of approximately $125. Always looking for additional income, Halyna never seriously considered growing horseradish, as the effort was not worth the pennies paid per kilo. But then she heard that the Vinnytsia Food and Gustatory Factory, one of Ukraine’s most famous producers of horseradish condiments and specialty sauces, was dramatically raising the price paid for the roots of the weed-like plant. She decided to give it a try.

The horseradish producer increased the price it was willing to pay suppliers after USAID’s Agricultural and Rural Development Support (ARDS) activity helped it modernize through a co-investment partnership. The effort was one of several such partnerships that USAID has developed with local food processors to improve the livelihoods of small farmers. With USAID support, the factory retrofitted its bottling and packaging equipment, which resulted in a 40 percent increase in horseradish production. It also increased its product line from 2 to 12 (including introduction of a certified organic brand), expanded its supply base from six to eight oblasts, hired additional procurement agents, and restructured its collection schedule. 

The factory also increased its marketing and international outreach and is now serving several new markets. To meet increased production requirements, the factory doubled its supplier base from 3,000 to 6,000 households. The price per-kilo paid for horseradish root has steadily increased from less than a penny in 2016 to 26 cents USD today. This provides an immeasurable benefit to households such as Halyna’s, providing more than $300 in additional annual income.

“We earn almost as much as with the sale of potatoes,” Halyna said. “And horseradish is harvested just as the field is prepared for planting potatoes. It grows all winter, giving us its gift in the spring.”

She added that it helps provide the extra funds  to buy her grandchildren new clothing and footwear. “At times we get tired. It is difficult to dig out the root from the clay soil,” Galyna noted. “But then we get the money in our hands and understand that the effort is worth it. Many in our village are benefiting by selling the horseradish. It’s a good additional income for all of us. We are very grateful to USAID for helping the factory, which in turn is helping us.”