Iryna Varagash: "There is a lack of domestic baby products on shelves of Ukrainian stores"

Iryna Varagash: "There is a lack of domestic baby products on shelves of Ukrainian stores"
"If the government supports local manufacturers of baby food, then tomorrow it will get benefits", - said Iryna Varagash, the President of the Foreign Invested Enterprise "Econia" during a speech at a meeting of Ministry of Agricultural Policy, which considered the development of baby food in Ukraine.
 
"In order to see what condition of current Ukrainian manufacturer, you may just take a look at the representation of domestic and imported products on adult and children's shelves in stores. Adult shelf is 90% represented by products manufactured domestically. The contrary situation you can see with children's shelves: 80% - imported products, and only 20% are domestic manufacturers. Imported products is higher segment of the market and it is not affordable for the majority of Ukrainian consumers. There are almost no domestic products being sold in the middle price segment", - noted Iryna Varagash.
 
According to opinion of the head of the company, only active support of companies producing baby food and implementation of specific measures that would be used to increase volume of domestic production could change this situation, which thereby will increase the share of the Ukrainian manufacturers in the future.
 
"One of these measures should be introducing of tax benefits, which would exempt Ukrainian manufacturers of baby food from payment of VAT. The restriction of trade margins and profitability should also be cancelled", - said Iryna Varagash and added that free funds could be directed to the development of existing production and creation of new manufacturing sites, expanding the range of assortment.
 
"Today, for example, there is no domestic Ukrainian manufacturers of meat and fish puree for babies, though we have everything we need to create high quality products (raw materials produced by Ukrainian manufacturers are not inferior to imported). However, the launch of such production is possible only with a considerable government support. This means assistance in providing customs exemptions on import of foreign equipment to install new lines for manufacturing of products (there is no domestic production of equipment for manufacturing of baby food in Ukraine), reduction of cost of credit resources and state subsidies", - declared Iryna Varagash.
 
The President of "Econia" is confident that this will give the opportunity to fill the market with quality products of domestic production, modernize manufacturing sites, introduce new technologies, create new jobs, increase turnover of related industrial enterprises and eventually compete with powerful foreign corporations.
 
"Delovoy region"

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