The production facilities of Yagotynsky Butter Plant ALC and Piryatinsky Cheese Plant LLC operate according to the usual schedule, all shipments of finished products are carried out on time. All other enterprises of the Molochny Alliance group of companies did not stop, they work as usual.

This is stated in the official statement of the Milk Alliance Group of Companies regarding the letters of the aforementioned enterprises to partners, which were made public on the eve of the New Year.

It is noted that orders from retail chains are 100% fulfilled. There was no talk about the shutdown of factories from January 1, 2022 in the letters mentioned, since the holding's management does not want and does not plan to stop production.

Export shipments are also carried out in a regular mode.

Letters from the heads of Yagotinsky Butter Plant and Pyriatinsky Cheese Factory LLC, published in the media, were sent to partners to inform about the critical situation not only among the holding's enterprises, but throughout the industry, the statement says. The reason for this was the rise in gas prices by 9 times, electricity - by 2.5 times, packaging materials - by 42%, and raw materials - by 25%.

“At the same time, we could not adequately raise prices for finished products,” noted in the “Milk Alliance”. “The negative gap between expenses and revenues resulted in factories operating at a loss in Q4.”

In turn, the holding turned to suppliers with a request to meet halfway and temporarily reduce prices for raw materials and packs, and retail chains - to reduce accounts receivable to the level of contractual terms.

AgroTimes