World meat industry news

The Federal Antimonopoly Service (FAS) received proposals from entrepreneurs to halve the time within which retail chains must transfer payments to suppliers for socially significant food products, Izvestia writes, citing sources. In their opinion, such a measure can slow down the rise in the cost of production, and, consequently, stabilize prices in stores.

According to the current law on trade, the period of payment for products by the retailer depends on the expiration date. For example, for perishable goods, the store must pay the supplier within eight days of receiving the order. Products with a shelf life of up to 30 days and alcohol can be paid for within 40 days. According to Izvestia's sources, due to the long payment terms, manufacturers have to use borrowed funds for operating activities, which affects the cost of production. If the FAS approves the initiative, then amendments to the trade law may be required.

Dmitry Vostrikov, executive director of the Rusprodsoyuz association, noted that only by increasing food production can we provide the population with sufficient supply at affordable prices. “The fact that food suppliers are now facing cash gaps is an unhealthy situation and does not stimulate the expansion of production,” he said.

Vostrikov noted that if foreign suppliers switched to 100% prepayment, then domestic enterprises consider it fair at least to remove from them the obligation to lend to retailers with commodity loans. “Retail chains are developing by leaps and bounds, which cannot be said about manufacturers. Enterprises producing a social group of goods consider it fair to set delays at the level of goods leaving the shelves, ”he believes.