photo: aggeek
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Today, there are practically no food processing industries in the Lviv region, so nothing but bread is produced here. Why is it necessary to open new enterprises not only for the sake of investments – an expert on the agricultural market, Ivan Stefanyshyn, explained in a comment to Lviv Now.
In addition, the bakery market still has a problem that existed before – about half of small bread producers work in the shadow sector of the economy. Previously some producers operated in most districts of the Lviv region, and partially supplied their locality with bread. And now, as for large enterprises, there are few of them left.
«If we make an investment for the sake of investing, then we can do a lot of damage. Lviv region is problematic from the point of view of the food industry. Because we don’t have anything of our own at all, absolutely no one processes anything. Previously, we had a grain factory in the structure of a state enterprise, but it was sold. We do not make cereals, macaroni and other products except bread. Therefore, in this segment, it would be possible to look for an investor for production, because the issue is logistics and the price of the final product,» – says Ivan Stefanyshyn.
According to the Lviv Regional Military Administration, there are currently 35 large enterprises engaged in the production of bread in the Lviv region. There are one and a half times more small producers who are also market players.
In addition to Lviv bakery enterprises, bread products are also supplied to the region from the Volyn, Khmelnytskyi, and Kyiv regions. The established indicators of how the market in the Lviv region is distributed between producers cannot yet be announced in the Antimonopoly Committee. However, they note that until 2010, large bakery productions had a higher specific value on the market, while now it’s the contrary – a significant share is occupied by medium and small «bakers», which is a positive factor and promotes competitiveness.
According to Ivan Stefanyshyn, there are currently no trends for the emergence of something new in the bakery segment of the Lviv region. Yes, many small producers have appeared, but some of them cannot withstand the pressure and close their production. As for those who continue to work, it is difficult to predict how long they will be viable, the expert says. At the same time, stronger players, if they have moved to the industrial group, already cease to be crafted. Therefore, if a new competitor enters the market just for the sake of investment, it will have a negative impact on the industry development in the region.
Read our spring report on food security amid the Russian invasion: «We must sow to feed the whole Ukraine.» How the Lviv region is preparing for the sowing campaign
Yulia Osym
Translated by Vitalii Holich
Follow us on Facebook and Instagram. Lviv Now is an English-language website for Lviv, Ukraine’s «tech-friendly cultural hub.» It is produced by Tvoe Misto («Your City») media-hub, which also hosts regular problem-solving public forums to benefit the city and its people.
