Business Journal of Commerce and Industry of Ukraine №8 (219) 2012
Confectionery industry, employing 170 thousand specialists, – one of the most developed in the food industry of our country. Total production is over 1 million. per year, allowing both to meet the needs of the domestic market, but also export it in large quantities abroad.
The industry are active users of national agricultural products – sugar, flour, krohmalopatoky, milk and so on the basis exports of processed agricultural products the country. Ukrainian confectioners and manufacturers krohmaloproktiv provide a significant amount of foreign exchange earnings, exporting products to more, than 50 countries.
Its range covers almost all groups of confectionery. In particular, Export caramel, chocolate and other food products containing cocoa, bakery and pastry products containing or not containing cocoa over the past four years increased from 814,5 million. US. in 2008 y. before 1,1 billion. last year, ie almost 36%, and is about 40% of total output. Potentially, it is possible to export up to the industry 2 billion. USD., which will reduce devaluation pressure on the national currency, significantly increase tax revenue, increase employment for workers 2-4%.
Modernization of production and quality
Our company annually invest in the development of the industry heavily. The leading confectioneries made full modernization, established the most advanced production lines. Significantly improved technology and business naukomistkist.
Industry develops in the highly competitive domestic and foreign, enabling management to continually improve processes and ensure high international standards of product quality.
International Quality Management System ISO 9000 implemented on 19-year, HACCP – 11 thou, ISO 22000 – at 16 plants “Ukrkondproma”. Industry experts recently developed almost 100 national standards for finished products and raw materials, which are harmonized with the standards of the European Community. These factors, along with a moderate government regulation made it possible in recent years to consolidate the position of domestic producers. However, recently deteriorating situation in foreign markets through the probes into foreign countries, the additional duty and other tough measures against our products.
Transnational format
The industry invested in the purchase and development of production facilities on potentially attractive markets: “Roche” acquired production sites in Russia (with. Lypets) and Lithuania (city. Klaipeda), “Conti” – RF (city. Kursk). The possibility of building confectioneries in other countries. Thus, it is possible, what form the confectionery industry first multinationals Ukrainian origin.
The main problem - the trade restrictions
Among the prerequisites of the industry: solving domestic economic problems (further reduction of the regulatory burden, improving the tax code, customs procedures, etc.); removing restrictions on the supply of Ukrainian confectionery, imposed by Russia, Kazakhstan and Belarus; full liberalization of trade in goods with the EU confectionery.
Prime Ministers of Ukraine and Kazakhstan Mykola Azarov and Karim Masimov during recent talks agreed on a settlement agreement – our exports kvotuvatymetsya, but within the production quotas will also be imposed no additional duty. First Kazakhs delayed implementation of agreements, and then change your mind at all to do and continue to apply restrictive duties. If Russia (Over the last ten years) charge additional duty on caramel, the Kazakhstan – even on chocolate products. With, CIS Executive Committee actually recognized the illegality of the Kazakh actions. But they ignored this conclusion.
As for the WTO, the, as shown, its dispute resolution mechanisms are not always effective. It should be noted, that while Russia's accession to the WTO Ukraine somehow not defend their interests, to Russia lifted restrictions on flimsy Ukrainian caramel. Therefore, it became unprofitable to export to this country. Besides, even UZ “help” compete, increasing cost of freight.
The bulk of deliveries of confectionery in Ukraine, traditionally, coming from the Russian Federation and the European Union, which account 94,38% total imports.
Since the beginning of this year, EU, boosted exports of confectionery products and significantly increased its share in the Ukrainian market presence. A marked disproportion domestic foreign trade in: almost half of the total imports of this product coming to us from EU, We supply them only 5% of total exports. Because Balan foreign trade with the EU is not in our favor.
There may be a problem and a plan. At the time, when the world is a struggle for raw materials, our deputies passed the bill, whereby the expected increase in import duty on cocoa products, hazelnuts and many other products, Are we not made. Tariffs can not be used solely to filling the budget under the name of protecting the domestic market. Who knows, of which the domestic producers in question, when increased duty on agar, hazelnuts, etc., are not produced in Ukraine. These “visionary” Parliament's decision will lead to significant economic losses, For the final product more expensive and it will be much harder to sell. so, Sales apparently fall, and with them automatically and corporate profits and payments to the budget. In this scenario, the winner will be our competitors.
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