18.10.2012

Iryna Varagash: 80% of children's shelves in Ukraine - imported products

Iryna Varagash: 80% of children's shelves in Ukraine - imported products
 "Ukrainian baby food manufacturers can't access commercial network of stores. Therefore, children's shelf is 80% represented by imported products" - said Iryna Varagash, the president of "Econia", during roundtable discussion in which representatives of domestic production and the authorities were resolving the question: what prevents the development of children's food industry in Ukraine.
 
According to Iryna Varagash, Ukrainian manufacturer has difficulties both at the stage of production, and at the stage of distribution of the products.
 
"Today, we are facing high requirements as manufacturers of baby. This applies to high-tech equipment, operation procedures, technology, raw materials, because everything concerns health of children. All this requires considerable resources", - said the president of the company.
 
In addition, according to Iryna Varagash, no manufacturer of baby food for today has direct distribution of products because it is also very expensive.
 
"We are working via three levels: distributor representing interests in a region, wholesale and retail trade networks. Each of these levels is expecting on own percentage of profits. To provide profit to these three levels, limits of profitability and trade markups should be 30-35%, but not 10%, as proposed by the government", - said the president of the company, adding that retail networks block access to Ukrainian manufacturers also because they do not want additional inspections of regulatory authorities.
 
"All this complicates the competitiveness of our children's products in comparison with imported products", - said Iryna Varagash and expressed hope that the government will come to understanding that the level of prices of products should not only reimburse the cost of production, but also provide the opportunity to develop the enterprise and industry of baby food in whole.
 

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