Kharkov confectioneries raise prices for sweets

“Price increase for practically all types of raw materials leads to rise in price of the confectionery,” – the President of the corporation “Biscuit-Chocolate” (Kharkov) Alla Kovalenko stated. According to the information from Kovalenko, since July the prices for wheat have grown by 17%, with the beginning of the season of sugar processing the price of this product has also grown from 5,500 hryvnas to 6,800 hryvnas per ton. Because of bad harvest the prices for hazel-nuts and almonds have grown by approximately 22 %, for cacao beans only during the last 6 months the price increased by 20%.

 According to the words of Kovalenko at the moment the prices for sugar by estimate correspond to the cost of its production and can become steady. “Nevertheless, by spring the prices may be awaited on the level of 8 hryvnas per kilo,” – Kovalenko considers.

She reminded that in the structure of the cost of product of the confectionery raw and packing materials constitute 65-70%. “It is impossible not increase the price of the final goods under the condition of such raw material price increase. Confectionaries are trying to do it very gradually at the expense of running at loss, taking into consideration limited consumer demand, and the problems with the export to the traditional end markets. Lately our ex-factory prices have gone up only for the limited assortment and not more than by 3-5%,” – Kovalenko told.

“Biscuit-Chocolate” consolidates PJSC “Confectionery Factory “Kharkovchanka””, PJSC “Kharkov Biscuit Factory”” and a number of another factories. In 2012 the factories of the corporation have produced 58,000 tons of confectionery goods. The volume of production comprised 910 million hryvnas. The goods are being delivered to 24 countries of the world, 42% of the sold goods were exported. The system of quality management on the factories of the corporation corresponds to the contemporary ISO 9001-2008 international standard. 3,000 people work on the factories of the company.

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