"Compromise". Major supermarkets self-limit settlement terms with suppliers at 30 days
The largest food retailers of Ukraine — ATB, Silpo, Auchan, Novus, Varus and Kolo — signed a memorandum, agreeing to limit the deadline for settlements with suppliers of basic products to 30 days, reported the Retail Association of Ukraine. The text of the memorandum was published by MP Danil Getmantsev.
The maximum settlement period between food producers and retailers is a painful issue for each of the parties. Everyone believes that they are lending money to the other, Economy Minister Yulia Svyrydenko explained last fall.
After the start of the full-scale war, the government passed a decree reducing the settlement terms with suppliers for staple goods to 10 days.
The shortening of settlement terms created problems for retailers and led to the loss of part of their working capital.
According to the terms of the memorandum, payment under supply contracts will not exceed 30 calendar days for the following basic commodities of domestic production (except organic):
→ cereals (buckwheat, wheat, peeled barley, pea, pearl barley);
→ beet granulated sugar;
→ wheat flour;
→ bread;
→ loaf;
→ pasta products from soft varieties and vermicelli from wheat flour of the highest grade;
→ milk (except for long-term storage);
→ fermented milk cheese;
→ kefir in film;
→ butter with a fat content of 72.5%;
→ sour cream in film;
→ chicken eggs (unpackaged) or C1 category;
→ refined sunflower oil;
→ chicken meat;
→ pork meat;
→ unpackaged vegetables of the "borshch set" (potatoes, carrots, beets, onions, white cabbage);
→ non-carbonated mineral water.
At the same time, the supermarkets in their activities will continue to comply with the requirements of current government resolutions No. 160 and No. 1236 regarding payment terms for staple goods within 10 calendar days and 10% retail markup.
"The document is designed to provide some support for domestic producers and stabilize the supply chain of basic food products," the Retail Association said, pointing out that this is the first market tool for self-regulation in the retail industry.
The memorandum is submitted to the Anti-Monopoly Committee of Ukraine, which will enter into force after approval.
"As a usual compromise, both parties are not fond of it, but an agreement has obviously been reached, which will benefit both market participants and consumers," Getmantsev commented on the document.