Ukraine: Expensive gas will raise the cost of production by 10%, warns confectioners

Ukraine's food security has come under threat from ultra-high gas prices. This statement was made by the president of the association "Ukrkondprom" Oleksandr Baldynyuk, the organization said in a statement. He said that since January 2021, the price of gas has already increased by 7 times, which may lead to the suspension and even bankruptcy of many food enterprises, in particular the confectionery industry. “The production needs of a medium-sized confectionery enterprise in gas are approximately 300-600 thousand m3 of gas per month, and they grow during the heating season. So, every month each company will need to additionally “find” about 10-20 million hryvnyas just because of the increase in gas tariffs, and the majority simply do not have these funds, ”Oleksandr Baldynyuk notes. Due to the sharp rise in the cost of gas, the share of energy carriers in the cost of confectionery products increased on average from 4% to 12%, and therefore the cost of confectionery products will ...