Dairy enterprises should prepare for lower consumer capacity – Eugenia Chemerenko
According to her, in the coming months, nothing good can be expected both in the dairy industry and in the economy on the whole. At the same time, Eugenia Chemerenko noted that there is no demand for the company's products only from social enterprises, and there is a slight increase in the retail market.
- Of course, the lost demand during the regime of self-isolation and quarantine of people will not be fully filled. When the regime is removed, HoReCa enterprises will not increase or compensate for the lost turnover, the consumption of confectionery products and ice cream may not return to the previous volumes of demand, the consumption of cheeses and butter will decrease due to a drop in purchasing power and an increase in unemployment, said the expert.
When asked about possible market consolidation, Eugenia Chemerenko noted that it rather depends on the region and the current structure of producers and processing within the region.
- It is much easier for companies that specialize in whole-milk products, with a low level of dependence on social enterprises and wholesale supplies to HoReCa, - she said. – From the means of state support of the market today, everything related to increasing financial support for the population and aimed at reducing the fall in income levels would be most effective. Subsidizing loans to replenish working capital and maintain stocks of dairy products with high seasonality of milk production would also provide significant assistance to the industry.
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