April 13 2007, 14:33

Many Ukrainian canneries won't work in 2007

According to information got by the analysts of ""Agrooglyad: Vegetables and Fruits" journal", many canneries in Ukraine won't be able to start their produce processing capacities in 2007. Thus situation relates to the deteriorated financial performance of the enterprises as a result of the excessive supplies of the canned produce on market and low prices for these products, and also the result of the excessive stocks of the unsold cans in the canneries' warehouses.

The experts explain this situation in the industry by the fact that the enterprises ignored the information about the raw material and canned produce market , and also they failed to organize the serious systematic approaches to the canned produce marketing. Andriy Yarmak, the Analyst of the "Agrooglyad: Vegetables and Fruits" believes that actually there are only 2-3 trademarks which are more or less recognized on market. The other companies have to compete in price or to buy the expensive shelves in the supermarkets. As a rule, the latter action does not have the affordable effect in view of the presence of a few strong brand names on market.

The managers have been changed at once on several canneries of Ukraine recently. Some enterprises are still looking for the new owners because the previous ones are not able to finance the enterprise activities this season. Probably, only the plants of the most successful companies will work this season as they enjoy steady sales of the ready products. Nevertheless, these enterprises are likely to reduce the volumes of fruit and vegetable processing as well. The other plants will either be idle or process produce in line with the orders or for the supermarket chains. It is possible that a complicated financial state will force certain processing enterprises to precisely specialize on the niche types of the produce.

So, the analysts of "Agrooglyad: Vegetables and Fruits" journal forecast that this year the volumes of the produce processed by Ukrainian canneries will decline not less than 50% comparing to the pervious year.