Ukrproduct: 5-Mos Domestic Processed Cheese Prices Down 15%

14th Jul 2010 16:08

LONDON (Dow Jones)--Ukrproduct Group Ltd (UKR.LN), a producer and distributor of branded dairy products in Ukraine, said Wednesday that during the first five months of 2010, domestic processed cheese prices have declined by 15% on average from January 2010 and have reached July 2009 levels, driven by aggressive pricing by local producers at the low end of the market. MAIN FACTS: -Prices for packaged butter were up by 25% year-on-year on average which has partially compensated for the increased cost of raw materials. -Over this period Ukrproduct experienced certain non-payment issues with its distribution channels which resulted in the delay of payments from a number of wholesale and retail customers. -The Group also came under competitive pressure from producers of processed cheese. Management believes that both of these issues have now been addressed and overdue payments have been received, however, it has resulted in a short term disappointing effect on its trading. -Ukrproduct remains confident that trading in branded products will recover further in the second half of 2010 and expects to be able to take advantage of its economies of scale. -Shares at 1505 GMT down 0.50pence, or 1.37%, at GBP36 pence, valuing the company at GBP14.78 million. -By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; [email protected] (END) Dow Jones Newswires July 14, 2010 11:08 ET (15:08 GMT)