In Ukraine, about $5 billion was laundered out of the turnover of manufacturers in favor of retail chains, Ukrainian businessman, owner of SMK Group Denis Paramonov said. He shared the statistics in his post on Facebook.
“Ukraine urgently needs a fair trade law,” he said. - Because it can't go on like this. Today it has become the norm for Ukrainian supermarkets to unreasonably delay payments for our products up to 120, and sometimes even up to 160 days. And this is with an average sales period of 14 days. During this time, the cost of purchasing raw meat increases by at least a third.
Retail chains use this money to purchase products from foreign suppliers. And those, unlike us, are paid immediately after shipment. As a result, the trade networks receive from importers a more favorable price for similar products. The difference can reach 20%, and in some places even 50% is not in our favor. Because of this, some national producers are going to relocate production abroad.
At the same time, Europe itself has clear rules for the regulation of the market. There, retailers can afford no more than 30 days of deferred payments. Violators are fined.
Besides that, retail chains do not want to accept the price increase from us. A recent example - dated October 1, we raised prices as needed. The trading networks agreed on this for more than a month. All this time, we actually had been working at a loss.
We estimate that, in Ukraine, about $5 billion was laundered out of the turnover of manufacturers in favor of retail chains. So it turns out that the Ukrainian manufacturer is driven into a constant shortage of working capital and blocking the development of business in favor of foreign competitors.
The bill №6155 would end this situation. It is the one that can regulate relations between suppliers and retail chains. And it will do it in accordance with the European market rules. Otherwise, Ukraine runs the risk of being left without national producers at all.
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