Ukrainian factories for the production of milk and cheese may stop due to gas prices

The companies have already warned that the orders for the products will be fulfilled in part “with the subsequent cessation of production.”

–

Due to the rise in gas prices for enterprises, the plants of the Milk Alliance group, which produce products under brands such as Yagotynske, Pyriatyn and Slavia, may cease their work. About this on your Facebook wrote co-founder of the holding Alexander Derkach.

According to the businessman, for all 15 years, while he and his partners are engaged in the dairy business, there has never been such a situation that “raises the question of the expediency of further production activities.” Derkach clarified that the entire industry, and not just individual manufacturers, is under the threat of termination of its activities.

Head of the Supervisory Board of the Milk Alliance Sergei Vovchenko statedthat the plants of the holding have already warned the partners that it is impossible to continue working at a loss. For example, Vladimir Barshtak, General Director of Piryatinsky Cheese Factory, in his letter to commercial partners warnedthat the enterprise from January 1 will “partially fulfill orders for products with the subsequent termination of production.”

In turn, the head of the Supervisory Board of the Milk Alliance said that the group is forced to turn to farms with a request to reduce prices for raw milk by “several percent.”

“(We also) turned to retail chains: accept our economically justified prices and reduce accounts receivable to the level of contractual terms. We do not set ultimatums, but only offer to overcome this crisis together,” Vovchenko added.

The head of the supervisory board also said that the factories found themselves in a paradoxical situation – “the more milk is processed and products are produced, the more losses are.”

“Judge for yourself. The price of gas for the year for us has grown almost 10 times (from 5.5 UAH / m3 to 50 UAH / m3). Electricity – 2.5 times. Prices for packaging materials – by 42%. Prices for raw milk – by 25%. But we were able to raise prices for finished products by an average of only 7%. In such conditions, further work will give us tens of millions of losses every month “, – said Vovchenko.

The Milk Alliance group of companies was established in 2000 by the former head of the board of Bank Aval Alexander Derkach and the former head of the board of this financial institution Fyodor Shpig. The holding includes 11 enterprises, including Pyriatinsky cheese plant, Yagotinsky butter plant, Bashtansky cheese plant and others.

On Tuesday, December 28, a number of associations and unions signed an appeal to the Prime Minister of Ukraine Denis Shmyhal with a request for an immediate meeting to negotiate a way out of the energy crisis. Discuss this issue with the head of government want 13 associations, in particular, the Ukrainian Agrarian Confederation, the All-Ukrainian Association of Bakers, Ukrkondprom, the Meat Industry Association, the Union of Poultry Farmers of Ukraine, Ukrvinprom and others.

Against this background, the Cabinet of Ministers intends set a ceiling price for gas 25 thousand hryvnia for 1 thousand cubic meters for producers of bread and bakery products.

Focus also wrote that on the eve of the probable stop of production was announced by Roshen and 26 other companieswho are engaged in sweets. They explained their decision by the fact that since the beginning of the year the gas price has increased from 5.9 thousand hryvnia to over 79 at the end of December.

– .