February 11 2003, 14:07 Interfax-Ukraine

Production of confectionery goods in Ukraine in 2003 will increase 5 to 6 pc

Ukrainian confectionery plants might increase output of their products by 5 to 6 percent compared with 2002 - up to 620,000 tonnes - should the legislative and pricing policies keep on stable, a spokesman for CJSC Ukrkonditer has informed.

Ukrkonditer embraces the majority of Ukrainian producers of confectionery goods.

"We can reach somewhat better performances than last year, if prices for raw materials do not increase and conditions of export do not change. These are the most important issues for the confectioners", the spokesman said.

At the same time, the experts do not expect considerable increase in production because of low buying power of Ukrainian population. They say the plants in 2003 will rather work at expansion of the product range and increase of quality than at the increase of production.

The specialists of Ukrkonditer think that many confectioners will resume production of dragee and marmalade and will further expand this product group. They say that, as in the last year, the majority of consumable confectionery goods will fall onto waffles and cookies.

"Ukrainian consumer is more prone to the backed confectionery group", the spokesman said.

The specialists said the large companies, such as Roshen, ABK, Kiev-Konty, Svitoch, Craft Foods Ukraine, would remain the market leaders. However, small producers will hold on their share, because of good demand for cheep unpackaged produce.

Specialists also do not expect an increase of imports of confectionery goods to Ukraine.

"Buyers have trust for domestic products", the representative of Ukrkonditer said.