This guy, Ukranalittsentra President Alexander Okhrimenko, is genuine, I can trace him back years as a quoted expert in 404 mags – RB
From the EU to Ukraine can come “second-class” goods: Food will become less, but it is cheaper
Segodnia.ua, Feb 9 2016
The Ukrainian market is waiting for serious change, analysts warn promrynka and economists. The reasons for the decline of living standards and the devaluation of the hryvnia. Of course, the shelves are not empty, but the range will become scarcer and the quality of the goods the lower price segment — cheap sausage, cheese, butter, dairy products — will deteriorate. Also a number of specialists expect the emergence of cheap products from Europe, made specifically for Ukraine, according to our standards, which are still less stringent than in the EU. Ukranalittsentra President Alexander Okhrimenko predicts:
Due to the fact that beginning to work a free trade zone with the EU, in our stores soon begin importing cheap macaroni and dairy products from Europe. But the packaging states that they are made from recycled wastes of food industry. In the 1990s this has happened: it was imported from Poland a lot of cheap yoghurts, candies, cookies, rolls and chocolates. These products are safe, but they are cheaper because are made through the use of simplified technologies, with the use of substitutes for natural products.
Director of ProAgro Information Service Mykola Vernitsky also admits that such products may appear, but doubts that they would be a lot. He says:
It’s no secret that in EU the products of one and the same name is produced for the domestic market, according to the strict standards of the EU, and for export in accordance with the requirements of the buyer country, which will allow the use of colouring, stabilizers or substitutes prohibited in the EU. They can bring to us in large numbers only if there is demand. But whether it will show the market.
But the quality of Ukrainian goods on the shelves has dropped, and that is recognized by the trade network. A senior manager of a large trading network, Vladimir Molchanov, said:
We now take more cheap sausages, cheeses, dairy products and groceries because they sell better. And the premium segment. But the sausages, for example, is limited to 10-12 positions, and a year ago there were twice as many. With regard to the average price segment for sausages and cheese, it’s very unpopular. Especially impoverished is the fish sector, as the focus is not on imports but on Ukrainian producers. Now there are many private fish farms growing карпа, толстолоба, карася etc.
According to Vernitsky, the situation is worst of all with sausages:
The competition is great, and the price is difficult to raise. Therefore, manufacturers reduce the cost, adding in the minced meat more fat, cartilage, and partially substituting the pork with chicken.
According to the analyst of the consulting Agency “AAA”, Maria Kolesnik, due to the opening of our market to euro products price growth will be (initially), but reduction can be expected (later on). She said:
It was expected that our customers will be able to access high-quality European products at lower prices due to the abolition of fees. But the devaluation of the hryvnia ate all the benefits. So for example, cheeses and sausages from the EU are implemented mainly in the premium segment, and greenhouse production, with the exception of sweet pepper mainly comes from Turkey.
Kolesnik predicts that the prices on the Ukrainian market in the next month or two will be determined by the stability of the hryvnia. Some minor impact of seasonal price lowering is expected for milk, meat and eggs due to the spring increase of milk yield, live weight gain and egg production of hens. (Conversely, there will be some) higher prices of vegetables due to the storage costs. By the way, in February, eggs were almost 30% cheaper, and sugar 5-7%. Vernitsky explains that recent interventions on the sugar market from the Agrarian Fund, but expects that it is long, because its reserves are small there. He said:
In the wholesale sugar prices are already rising. Closer to summer we can expect that the retail price rises above 20 hryvniot per kilo.