– Alexander, tell, you are welcome, in which our country kondproduktsiya comes today, which of the still untapped markets could be promising for us?
We supply konditerckie products in more than 50 countries of the world, but deliveries to the CIS countries is much higher than in value terms of delivery to other countries. To date, very promising and untapped for us is the EU market. We understand now, that after the problems with access to the markets of Russia and Belarus' export diversification - this is an important challenge for the industry, for further development, irrespective of the country – trading partners, who do not fulfill their obligations to us and ignore international trade rules.
– The economic part of the agreement on association with the EU signed. What are the risks and opportunities it opens up our confectioners?
Now we are actively studying the European market for export expansion. In fact, it is very difficult. The European market is very competitive, it is saturated with confectionery, it is attended by very strong players. Has its own specifics, and with the entry into the market. for example, во многих странах ЄС кондитерка продается преимущественно через торговые сети. In the leading countries - Germany, France, England - have 4-5 players, which control all trade in the country. Therefore, the path to the user is through the distribution network, in which their claims to the vendor. Networks easier to work with major international manufacturers, who have the ability to hold a large-scale advertising campaign, etc.. We all have to go through.
–How we can supply to Europe?
At present, E exchange with EU countries about the same amounts of confectionaries: about 20 thousand. tonnes in each direction. But in value terms, imports from the EU kondizdely about 2 times higher than the exports to the EU from Ukraine. reason: unequal trade regime between Ukraine and EU, which existed prior to the signing of the Association Agreement. Access to our market for European sweets was almost open, while the European market for us was closed duty at an effective level 40-45% cost of goods.
Now, Bilateral trade between the EU and Ukraine confectionery almost completely liberalized. We get, one side, call, and on the other - an opportunity, that we need to use. How we can do this - time will tell.
To tell, that we are ready to enter the European market immediately, probably, it would be an exaggeration, because there is a consumer, which we though similar tastes in respect of confectionery, but, at the same time, has its own taste nuances in each European country. And since the confectionery market is very competitive, it is precisely nuances here often play a key role. Behind this apparent similarity we have to look for the subtleties of taste, which will enable us in some assortment ranks start to hold their positions. We hope, that we will be able to establish trade with the EU in the short term, during 5-7 years old. Any number, that call, is subjective, predictive. We expect 400 million euros, but in fact it can be quite different figures and upwards, and vice versa.
At this stage we can not predict, because there is no dynamics, the process has only just begun. Much, by the way, It will depend on, some internal regulation will be in our country.
– Whether to change the price of confectionaries in the domestic market? If yes, in which way and in connection with which?
We do not track prices. Yes, in the world, prices for cocoa beans, but this is not strongly reflected in our final product. We have the same prices for finished products growth lags far behind the rising cost of raw materials. For example, flour has risen in price since the beginning of the year about 50% before 4,13 hryvnia / kg, flow - on 16% before 6,2 hryvnia / kg, gelatin - of 42% before 150,82 hryvnia / kg. Импорт европейских товаров тоже станет, rather, deterrent to domestic prices growth, as it increases the already high level of competition.
– Alexander, toakuyu dynamics showed confectionary business 1 half of 2014 compared to the same period last year? What are your forecasts for the development of the market before the end of this year,.
negative dynamics. We see a large drop in production, first of all, in the part of those enterprises, which are part of the Association. It is virtually all major companies in the industry, provide up 75% confectionery market in the country.
here, for example, three months of last year was made 224 thousand. tons kondizdely, and in January-March this year - only 172,3 thousand. tonnes. We see a reduction in the 51,7 thousand. tons - is even greater, than the reduction on the basis of the production of the past year - on 39,2 thousand. tonnes (-4%) before 908,8 thousand. tonnes compared with 948 thousand. tons in 2012 year. By the end of the year the decline may be more, and it will affect the financial performance of companies.
In addition, the decline in production of finished products is also reflected in the related fields: in large quantities, we have reduced the demand for the products of the sugar industry, flour industry, patokovoy, breast, packing etc.
– Recently the Belarusian market closed for the Ukrainian confectioners. Is it possible to get it back, that this should be done?
Belarus once again with the help of administrative illegal measures has closed its market to us. This is not the first time, when the Belarusian side has trampled on our national interests, protected by international legal instruments. I'm talking about trade and economic interests of Ukraine. Last year, for two months the Belarusian customs for unknown reasons to us stopped all imports, transferred all Ukrainian goods in the customs inspection regime reinforced with full unloading of our products and moving it to the temporary warehouses. certainly, when the first shipments stopped by customs, all other factories stopped deliveries, because they understood, that the prospect of the customs clearance of goods will, properly, same.
During 2 months, the Belarusian side pretended, that tries to understand, what's happening, in fact, they imitated the negotiation process and continued to keep our goods on the border. And, The timing was not accidental: April May – during the peak pre-Easter sales of confectionaries. You know, that in the present kondizdely sales seasonality. Just Belarus chose the peak sales of confectionery products, not to miss our products in your market. They have successfully coped with it.
Our power, in fact, showed, that she was not able to give an adequate answer to solve this problem.
– How we delivered Confectioner in Belarus?
Russia is the number one importer of the Belarusian market of confectionaries, and we - number two. Together with Russia we import to Belarus about 90% Belarusian imports. Last year, we put on the confectionery market worth about 70 million dollars. Given the growing trend of our exports to this country, I think, This year we could supply to Belarus sweets worth about 100 million dollars. Moreover, due to the devaluation of the hryvnia, our products could become more competitive in foreign markets.
But, Unfortunately, our exports worth. Belarusians, as known, introduced import licensing procedure kondizdely. They force us to set minimum prices for our products in the range 50 before 500% above market. That is, the price level will not give us the opportunity to sell the Belarusian market. Until now, no license is not obtained, because to accept such conditions makes no sense. Exports of raw materials and kondizdely (Starch-products industry patokovoy) currently suspended in Belarus. According to our information, all attempts to relevant agencies to negotiate with the Belarusian side came to nothing.
– Alexander, How do you see the next steps of our government to overcome the current situation?
It's hard to predict the next steps of our government. We see, that negotiations with Belarus do not bring no effect, Belarusians mimic negotiation processes, wherein, as in a known adage “A Vaska listens, yes eats”, they continue to pursue a policy of restrictions on our confectionaries. This is only one of the parties. There is another side - Belarusians have banned trade subjects, which is part of the municipal or state ownership, implement the imported products. This is a gross violation of the basic principles of international trade. Belarus believes it is possible to comply with its obligations to trading partners and international organizations.
We have asked the Ministry of Economic Development to conduct an investigation into the anti-discrimination action against Belarus. The results of this investigation are submitted to the Departmental Committee on International Trade of Ukraine, which has the power to determine the existence of hostile and discriminatory actions, First of all, and secondly, encourage the Government to take measures against the Belarusian side.
– Могут ли быть какие-то “Rear answers” action on Belarus? for example, why not ban them realize we jelly, which actively fills our market?
It seems to me, it is the only effective way to convey to the Belarusians, that you must still comply with all obligations towards its partners. We are well aware, that the last year's situation showed Belarusians (this, in fact, precedent), you can with impunity trample on our interests. With the Belarusians their methods need to do - to ban those products, that they have nowhere, except we, realize. Dairy products they can not sell to third countries, except for Ukraine and Russia.
Yet there is one important fact: trade with Belarus has 10 years is added to the negative balance for us - in the range of 1 before 3 billion USD annually. They, one side, restrict our trade illegally, and on the other - using our market. Therefore, if our government understands the specifics of trade with Belarus, and still try to defend our interests, we are in this case we have a perspective on the full, fair and equitable trade relations.
– Russia spoke about the intention to introduce similar restrictive measures to protect its domestic confectionery market? Is it possible in Russia, given the volume of its imports? As it is displayed on the Ukrainian producers?
As for Russia, here there is also an economic, and the political aspect. In the past year we have witnessed a true trade war, when Russia used the customs procedures as a tool for blocking our supplies to its territory. Of course, Customs may consider the individual situation and impose restrictions relative to some enterprise, and apply it to the product specific customs procedures. But if such customs procedures are introduced in relation to the entire industry, First of all, and if, Secondly, This leads to a complete blocking of imports from certain countries, it means, that we are not dealing with customs procedures, and a tool of political pressure.
We are well aware, that Russia was trying to influence the decision of Ukraine to sign the agreement on association with EU.
– How much are we in Russia have supplied?
Well, let's start off with, that Russia has for 10 years applies to us restrictive measures in relation to our caramel. Shipments of this product fell for 10 years from 140 thousand. tons to 5 thousand. tons per year.
Our country during the reign of Yanukovych's regime has admitted Russia's WTO accession, without solving a single problem of trade restrictions imposed by the Russian Federation. All abstracts of, that we will work effectively with Russia in the framework of the WTO agreement, until you have paid off. Russia continues quite freely interpreted its obligations in relation to the Ukraine as a partner in trade at the WTO, not bothering to compliance with all international regulations. In addition to special protective measures against our caramel, Russia last year quite unnecessarily and illegally introduced a sanitary embargo on major Ukrainian Roshen, thus violating not only the principles and rules of international trade, but its domestic legislation. And this, certainly, attempt to punish Ukraine for its European integration course. Still, as known, This embargo is not lifted, although Ukraine has done everything possible, He fulfilled all the requirements, that Russia itself and come up.
obviously, that Russia had no right to impose such restrictions. The only reason could be a threat to the safety of products: mass infection or threat of mass poisoning threat. ie. Indicators should be broken product safety. true, сначала господин Онищенко (Gennady Onishchenko, then headed “Rospotrebnazor”) заявлял о якобы нарушениях показателей безопасности, but then he could not confirm the words evidence base. He contradicts himself, because soon recognized, Roshen that products are safe for the consumer. Russia thus had to allow the import of, but nonetheless, they continue to look for reasons – cling to the alleged violation of the labeling and packaging requirements. The Russian side never gave any supporting documents. They never showed us, where it is and what we have transgressed. We just said,: "You break", and all. I would characterize the Russian action capacious word "arbitrary".
– Какие компании продолжают поставлять в Россию кондизделия и о каких объемах идет речь?
Considering, Roshen that provides nearly half of our exports to Russia, and in a year we exported to Russia goods worth about 600 million dollars, the ban on the delivery of products Roshen Russia has cut half of Ukrainian imports. Then they battered us customs procedures, you know, that there impose the so-called mortgage payments, as a result we often had to pay double the cost of the goods. The money is deducted from the company and went to certain accounts of the Federal Customs Service of Russia, that washed away funds from the companies' turnover, worsened their financial performance, since the return of the money was delayed for months, and not all of them have received so far. So now some exports persists, but, certainly, more than modest in comparison with the, that we have supplied to this.
– How many lost Ukrainian confectioners in connection with the annexation of the Crimea?
Now there are difficulties with the supply of products, to afford the payment. certainly, all this affects the volume of production.
– What we need to take in the first place for the normal operation of the confectionery industry?
For normal operation in the country, not to mention the process of entering the EU markets, we need to carry out systemic reforms, aimed at de-monopolization and deregulation of the economy, fight against corruption, reform of the judiciary and law enforcement agencies. Priority is to change the state administration on a philosophy, in which the state would perform service functions for the real economy.
But so far beyond words dealing with the reforms do not go. I will not say, that absolutely nothing has been done, tk. a number of important laws were adopted, in particular the reduction of licensing documents, on metrology, standardization. Although, according to my information, We take these laws with the active resistance of our officials and under pressure from international donors.
– What needs to change in terms of legislation?
If we talk about the field of food, It is one of the most important legislative acts, around which for many years there is a struggle, this bill, regulating food safety control. It establishes a European monitoring system, removes many unnecessary, but pay procedure, It increases the responsibility for violation of the requirements for food safety. This is beneficial for the producer, and the consumer. Decline in market competition reduces the quality of the products, so we are fighting, that was a tough food safety control and correct informing the consumer about the product. We support the strengthening of control, but at the same time, in favor of a transparent system of control. Project, developed by independent experts, submitted to Parliament and approved by the Agriculture Committee of the Verkhovna Rada of Ukraine. We hope, that it will be adopted.
Необходимо пересмотреть методологию расчета таможенной стоимости товаров при их импорте через государственную границу Украины. Domestic manufacturers are often faced with the overstatement of the customs value of imported raw materials, leading to an unjustified increase in the cost of finished products, only because, that customs officers need to implement the plan income to the budget.
It is necessary to fully implement the "On licensing system in the sphere of economic activity" set forth in the Law of Ukraine, the principle of "tacit consent", providing, that if the state agency for more than ten days beyond the deadline delay issuing permits a business entity and not informed about the refusal to issue it, that such a document is considered to be issued.
Also appropriate is the introduction of personal responsibility of officials for misconduct, which led to a financial loss of the enterprise. civil servants often prescribe an exorbitant amount of fines in order to meet the budget plan fees, or trying to force the company to bribery. Economic entities are forced to incur substantial legal costs, contesting such unlawful decisions of officials, а в украинских реалиях – чем выше сумма штрафа, and the higher costs, including. and corruption. In this situation, the introduction of the personal liability of officials or, Typically dismissal in case of loss, let us say, in three trials in two years, It would make them think twice, before prescribing dubious penalties.
Generally, I do not see the determination and will of our government, not in words, but in fact to carry out the de-monopolization and deregulation of the economy, systematically overcome corruption schemes and eliminate corruption flows. For example, the well-known exclusive circuit around DC "Ukrekoresursy": business and the public have repeatedly called on the new government to revoke the monopoly position of the company. This can be done in one day. You heard, probably, of this scheme? Every importer should reach an agreement with the company, and an agreement is made in such a way, that ultimately the importer can not demand anything from DP "Ukrekoresursy", tk. time and place of supply of services is not indicated. This agreement is imposed by fiat, otherwise the goods can not be cleared.
Leading Manufacturers Association as a food, and industrial products, They called on the government to revoke the said scheme and to implement European standards in the field of packaging waste. Producers supported the head of Michael Brodsky Gospredprinimateltva, Minister of Economic Development and Trade Pavel Sheremet, but the Ministry of the Environment, this scheme has already satisfied. We see, how quickly forgotten values of Maidan. And this is just one example of thousands of ...
A source: Ukrainian news
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