Confectioners have not sweet

Feb 03 2012 published c earnings

“world food”, №76. The current business environment in Ukraine is not easy. But for entrepreneurs it is important to have a clearly defined, sound policies and effective regulation, which takes into account their experience and needs. Understanding this makes them join forces. On the practice of the functioning of an industry association says Alexander Baldynyuk, President "Ukrkondprom 'Association

- Tell, What is special about your association?

«Укркондпром» – это ведущее отраслевое объединение производителей кондитерской продукции. We now have sixteen members, and will soon join the company and Nestle. We are ready to take the enterprise, who are interested in the joint solution of common problems of the industry.

On the basis of the rating «Doing business» World Bank, Ukrainian business environment is very complex (we are in the second hundred countries), which is caused by many factors – including a Rocket tax laws and is still a high level of corruption. In this situation, the business representatives need to unite and act together, which is what the participants 'Ukrkondprom' Association.

- How to become a new member of this structure?

Procedure for entry into the association is enshrined in our statutes. The decision is made by a vote of the General Meeting. This system is standard for European industry associations. Also produces general meeting goals, Association task, development trends. The structure is provided and the Supervisory Board, which oversees the work of the executive bodies.

- Alexander, specify the basic mission of the United?

Our main goal - is to create (a favorable business environment in Ukraine, in which the association members can freely develop and expand production in conditions of fair competition. We focus on open and constructive dialogue with the government and seek to reduce excessive government. regulation while improving corporate social responsibility. authorities may not always experience the industry-specific job or to predict the consequences of actions taken against businesses.

we are also in favor of maintaining high quality standards. In Ukraine there are already relatively stringent standards for quality confectionery. their implementation – a prerequisite for the further development of the industry. participants Association – and that, usually, large enterprises – strictly adhere to this condition, as in the confectionery segment, the level of competition is very high, which encourages companies to fight both for the quality of products, and for the price indices.

The second most important direction of our activity - protecting the interests of Ukrainian confectioners in foreign markets.

- Which of the problems today is best seen in the confectionery industry?\

The main problem - common to all sectors of the Ukrainian economy: corruption, the lack of effective protection of private property, equality of all before the law. We talk a lot about corporate responsibility, and it is right. But in this case it would be advisable to note, and that officials should be held accountable for the decisions, implementation of which has led to unnecessary losses of producers.

There are also more mundane problems. for example, GMO labeling issue. Безу­словно, products with GMOs should allocate, but why do it with food, where these organisms do not have or can not be initially. As a result of the treatment of a number of industry associations has been designed to bring the law closer to European standards Ukrainian legislation, regulatory labeling GMO products. But it "successfully" failed in the Verkhovna Rada.

Our position is not that, to mislead the consumer, and to label GMO exactly, as is done in developed countries.

There is a problem of quality raw materials. This applies, eg, dairy products. 60% of the volume of its production comes from households in Ukraine, each of which has one or two cows. Such an undertaking can not be cost-effective, and always will sacrifice the quality of products.
In these circumstances, Ukrainian confectioners to maintain a high quality of raw milk have to buy abroad, in particular, in the EU or to build a dairy farm itself.

- Your comment regarding the export of confectionery…

Today Ukrainian confectionery industry not only fully satisfies the domestic market, it also gives a fairly significant contribution to the development of our economy in the form of exports: last year it was about $800 million. Branch is formed as a basis for Ukrainian food exports. As Ukrainian products overseas demand, This often leads to a situation, when other countries, losing in a fair competition, trying to administratively close the Ukraine access to these markets.
A striking example - Russia, which is the third time applied the so-called "special safeguard measures" against Ukrainian caramel products. Besides, RF is almost solved the problem of distribution of these measures to other countries of the Customs Union. The volume of exports, which is under threat - about $100 million. Of course, as a result of these steps, we will not lose exports completely, but it will be an order of magnitude lower.

- How important is the Ukrainian food quality control system to adapt to international standards?

Usually, such standards may voluntarily maintain any of the countries. And Ukraine - is no exception. But more often than national legislation toughens requirements for product quality control, taking into account the specifics of a particular national or a certain public opinion. This is the situation in our country.

We can not ascertain, that there are specific complaints about the quality of Ukrainian products. certainly, manufacturers are different, but as for the companies with a long tradition – there is very strict quality control, and any possible violation of the standards is excluded.

Because otherwise these companies will suffer losses in the competition. Besides, Abroad operates very strict quality control, so we have to comply with the requirements, that push the supervisory authorities of other countries. And this is our absolute advantage: Ukrainian confectionery -Really quality!

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