Ukrkondprom: “Our task - an effective dialogue between business and government”

Feb 03 2012 published c earnings

“bread business”, №1. Confectionery industry in Ukraine - one of the most important sectors of the food industry. The volume of industry output is about 3% VVP NA, and the share of Ukraine in the world market reaches 1%. About tom, than live domestic confectioners, the successes and challenges of the industry says President "Ukrkondprom" Association Alexander Baldynyuk

Alexander, представь­те, you are welcome, our readers association.

Association "Ukrkondprom" is an industry association of domestic producers of the three adjacent sectors - confectionery, food concentrates, Starch, as well as Ukrainian producers of coffee. The Association includes 18 participants, among them - the State Enterprise "UK" Roshen ", ON "Conti", CJSC "AVK", JSC "Kharkiv Biscuit Factory", OJSC "Poltava-con", LLC "Nestle Ukraine", SP "Galka Ltd", "TD" starch ", etc..

Note, that members of the association to date is provided about 70% confectionery and food concentrates production and 100% starch production in total manufacturing industry.

- What, In your, is the main mission of the association, its main function?

Currently in Ukraine have developed complex conditions for business development. The mechanism of the relationship between government and business is still imperfect.

Therefore, the main objective of the association, in our opinion, It is to establish an effective dialogue between business and government, achieving a reasonable balance between government regulation and interest-
my business, promotion of Ukrainian products in foreign markets.

In solving problems it is very important, the voices of all vendors sounded harmoniously, rather than apart.

- "Ukrkondprom" - "young" or rather "mature" organization?

The Association was established 10 December 2009 of the year. However, the current union is the successor of CJSC "Ukrkonditer". But beyond the Company remained many major market participants, which are now part of the association. Besides, "Ukrkonditer" increasingly focused on general issues, carrying out paid services for association members. The Association is a non-profit organization, spreading the composition and possible previous branch association.

- Speaking about the domestic confectionaries, How do you assess the situation in the industry?

First of all, it should be noted that, that confectionery industry - a major consumer of Ukrainian agricultural products - sugar, flour, milk, starch and molasses - is one of the most developed sectors of the food industry in Ukraine- If we talk in terms of figures, the total output of the industry is more than 1 million tons of products per year. This makes it possible not only to fully meet the needs of the internal market, but also to export significant volumes of production abroad.
An important fact is also that, that the industry (directly in production) employs about 170 thousand. работни­ков. In this case, the domestic confectionery companies annually invest in the development of some 200 $ millions. USA.

- Are domestic enterprises competitive?

The reality of today's market is, that the industry develops in a tough domestic and foreign competition. it, by the way, It contributes to the continuous improvement of management processes and ensure high-quality products, corresponding international standards. By the way, on all the leading enterprises of the sector are implemented and functioning of the quality management system ISO 9001:2000. At the enterprises - leaders of industry to actively introduce international product safety system HACCP.
In recent years, industry experts have developed about 100 national standards for finished products and raw materials which are harmonized with the standards of the European Community and the European Commission “Codex Alimentarius”.

All these factors have allowed domestic confectioners almost completely displace competitors from other countries in the internal market.

- It, certainly, curious. And what steps the association in terms of the overall increase of domestic products, his control?

Today, based on the association operates the Central branch tasting commission for confectionery quality assessment, food concentrates of coffee, tea and beverages based on them, which deals with the annual meeting about 400 new products.

Besides, Association serves as the secretariat of the Technical Committee for Standardization TK152 "Confectionery Products & FOOD CONCENTRATE", which develops industry standards.

- Based on the above,, domestic confectioners is not going to give in to difficulties. How do you see the prospects of development of the industry?

Because the medium term, domestic confectionary consumption will remain fairly stable, and domestic demand for confectionery products almost entirely provided by national manufacturers, increase production can only be achieved by increasing exports.

by the way, on export. About what it amounts in question?

Looking ahead, I note, that confectionery industry - one of the basic elements of the domestic agribusiness exports of processed products. Today, domestic confectioners and manufacturers of starch export products to more than 50 countries in the world, totaling about 1 billion dollars. USA, thereby providing a significant amount of foreign exchange in Ukraine. Important to, exports of confectionery products from Ukraine increased over the past three years 814,5 $ millions. US 2008 year to 972,8 $ millions. US 2010 year, ie. almost 20%, and is about 40% of the total production.

Is it possible to significantly increase the volume of Ukrainian export of confectionery products, and if so, what are the advantages it can bring?

Potentially might bringing products to the export industry 2 billion dollars. in year. it, first of all, will reduce devaluation pressure on the national currency, significantly increase tax revenues, as well as to increase employment in the sector is not less than 2-4%.

What factors may be decisive for the further development of the industry?

First of all, it is extremely important to achieve the lifting of restrictions on the supply of Ukrainian confectionery, imposed by the Russian Federation, Belarus and Kazakhstan.

Besides, requires the full liberalization of trade in confectionery goods between Ukraine and the EU.
Extremely important is the solution of internal economic problems, among them - a further reduction in regulatory pressure, improving the tax code.

Speaking of specific cases, the decision of any questions is currently in the Association?

One of the current problems - the question of increasing the transition periods for entry into force of changes in regulatory documents.

Here, in our opinion, important, that, changing, for example, any requirements for the product, organization of production, the government gave the business an opportunity to get out of this situation with minimal losses. It should be understood, that all expenses will still ultimately borne by the consumer. If we look at foreign experience, the, eg, in the European Union there the manufacturers to solve these problems is given two to three years. In Ukraine - a few months.

Alexander, What would you wish to our magazine and its readers?

On behalf of the association would like to support the new edition of his endeavors. At the same time I would like to see in the pages of relevant publications, highlighting the urgent problems of the industry and their solutions. It seems to me, that for this purpose you (I mean publishing) has it all - and experience, and strength. trust, that this magazine will benefit both domestic producers, and state as a whole.

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