“Ukrkondprom” predicts 2012 year decline in output in the country kondizdely

Feb 03 2012 published c earnings

Kiev. 26 January. Interfax-Ukraine - Ukraine 2012 year may reduce the production of confectionery products due to problems with reimbursement of export VAT and the introduction of protective duties on foreign markets, said the agency “Interfax-Ukraine” President of the Association “Ukrkondprom” Alexander Baldınyuk.

According to him, decline in production triggered, mainly, fiscal pressure from the state.

“Complex is the situation with regard to delayed export VAT refund or compensation under the condition of immediate transfer of the amount of reimbursement of VAT in an overpayment of income tax, which contributes not only to leaching of working capital of enterprises, but in general, the deterioration of the competitiveness of Ukrainian confectioners. This is especially important, given the export-oriented industries”, – the president said “Ukrkondprom”.

Among other negative factors, impact on production cuts, A.Baldynyuk said rising prices for raw materials and energy, outrunning increase in cost of confectionery products, and also increase the cost of transportation.

The expert noted separately complication of the situation in the traditional foreign markets.

“Russia 8 July 2011 year imposed a special duty on Ukrainian caramel products in the amount of $294,1 for 1 ton, the effect of which has been extended to all the countries of the Customs Union. In September of the same year, similar measures against Ukrainian caramel and chocolate products has made the Republic of Kazakhstan”, - Around A.Baldınyuk.

According to him, “this is a very significant factor, because in Kazakhstan were very large volumes of supplies”.

However A.Baldynyuk not exclude the possibility of stabilizing the area in the case of manufacture kondizdely, if the Ukrainian enterprises will be able to shift to other markets and to optimize production.

“Confectionery industry has always been characterized sufficiently flexible approach, quick response to market changes”, - he said.

some optimism, According to him, It gives a preliminary agreement on the level of heads of governments of Ukraine and Kazakhstan to resume trading at zero customs duties within quotas.

“Although the size of the quota remains unclear, the timing of their establishment – unclear”, - TA A.Baldınyuk.

As the president “Ukrkondproma”, Ukraine in 2011 year produced 1,07 kondizdely million tons in stock, What's on 2,1% less, than in 2010 year. In particular, release of sugar fell by kondizdely 8,6% – before 226 thousand. tonnes, chocolate – by 2,3%, before 341 thousand. tonnes. The production of bakery products, whose share in the total output kondizdely in the country is about 46%, increased by 1,1% – before 496,62 thousand. tons.

As reported, Kazakhstan Government 26 September 2011 , introduced protective duties on imports of caramel (30%, but not less than EUR0,27 per kg) and chocolate (49%, but not less than EUR0,8 per kg) for three years. Duty other kondizdeliya cocoa set at 39%, but not less than EUR0,42 per kg.
According to the Customs Service, c 2011 the export of cocoa without kondizdely, which include, including, caramel, from Ukraine to Kazakhstan decreased by 18,8% and made 10,62 thousand. tonnes (to the amount of $21,66 million), chocolate and cocoa kondizdely - on 22,3%, before 15,59 thousand. tonnes (to the amount of $50,19 million). According to these indicators Kazakhstan is the second largest after the Russian export market for Ukrainian confectioners.
www.interfax.kiev.ua

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