Kirill Chechin: the situation is stabilising and consumption indicators are levelling off
According to the expert, expecting an increase in consumer demand, retail chains formed increased inventory.
- As a result, almost all our sites have shipped the maximum possible volumes of products. It is worth noting that at the first stage, during the rush demand, there was a fairly serious change in the structure of sales channels in the direction of sales in hypermarkets. Due to the forced holidays of schools and kindergartens, the public procurement channel has been almost completely stopped. Also, deliveries to the HoReCa segment were stopped due to the closure of restaurants and cafes, - said Kirill Chechin.
The representative of the agricultural holding noted that during the peak demand period, there were some difficulties related to the lack of transport, as the load on logistics centers and on the transport company increased by up to 40%.
- We found a slight decrease in the level of service for Federal retail chains from 97% to 82% during the period of active demand. A positive factor was that the borders of the regions were not closed, so none of the 2.5 thousand trucks sent over the past month with products outside the Udmurt Republic under quarantine to stores of Federal retail chains was stopped, and all the goods were delivered on time. At the moment, the service indicator has stabilized to the standard level of 97-98%, - said Kirill Chechin.
As for exports, in February-March, before the introduction of strict restrictive measures, the company was able to successfully complete the planned shipments, in particular, 120 tons of meat products of LLC “Vostochny” were sent to Mongolia. On April 10, a batch of ice cream with a total weight of 26.2 tons was sent to the People's Republic of China from the Perm cold storage plant "Sozvezdie".
As previously reported by The DairyNews, the company made certain adjustments to the holding's export activities for the first half of 2020 and temporarily suspended shipments of some products – for example, milk and eggs until the sanitary and epidemiological situation in Russia and the world is leveled, despite active requests from foreign retail chains.
- There were some concerns about interaction with our foreign partners, since some of the raw materials, as well as packaging material, are purchased by the company abroad. We did not exclude logistical failures and problems related to the closure of territory borders, so we thank our foreign colleagues for their efficiency and understanding – all the necessary materials were delivered to us without delay, - said Kirill Chechin.
The Executive Director of “KOMOS GROUP” also expressed the opinion that a multiple increase in production volumes for social products is currently not possible, since most of the company's enterprises were operating at almost 100% capacity even before the introduction of quarantine measures. A minor structural change in the product portfolio seems more likely, the expert concluded.
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