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IKAR in Mass Media

The influx of buyers in grocery stores reached a peak

26 марта 2020 года

the Existing inventory and available production capacity is more than enough even to meet the increased demand for food, assured the Vice-Premier of Victoria Abramchenko. But besides this, the Ministry of agriculture and the Ministry of industry will form an additional pool of food suppliers in case of supply disruptions or default. The Federal customs service and Rosselkhoznadzor has pledged to create the best possible free flow of food imports. The network, according to Vice-Premier, restructuring their logistics schemes to keep up with increased demand.

According to retailers, the influx of buyers in grocery stores, appears to have peaked and now will decline. So, at the stores of “Azbuka Vkusa” on March 18, did 220% of planned revenue, 19 March – 180% of revenue, said company President Denis Sologub at the round table “a Stress test for the coronavirus for business.” “We never sold so many cereals, toilet paper and somehow quinoa”, – said a top Manager. According to him, the demand for buckwheat and pasta is literally for a week increased by 10 times. According to the Director of corporate communications at X5 Retail Group Elena Connoway if a week ago the agiotage was observed in the centre of Moscow, and now he shifted. In the capital, demand has doubled, and in most regions the increase amounted to no more than 15%.

“All the company’s resources thrown at it to ensure product availability on the shelf”, – assured Denis Sologub. However, up to this point, the whole supply chain has been built under the normal mode. Expected sales for the new year or March 8 in the network are planned in advance: commodity wtsa is gradually to be ordered from suppliers and build shops. But now there was an unplanned spike in non-typical retail chains categories. Therefore, retailers have to make decisions that “pulls the blanket” from one direction to another – for example, it is possible to reduce the range and focus on the supply of a large amount of most earners. On March 18 inventory of the network Denis Sologub was estimated at an average of 26 days according to different products they develop differently depending on the storage time, logistics, etc.

“Inventories are minimized – we are hostage to the suppliers,” he admitted. He understands that in this situation the suppliers are also caught between two fires. On the one hand, increased demand from networking with other technological restrictions in production, logistic complexity. For example, often serves to dramatically increase the number of transport – “ABC of taste” proposes in this case to collect the goods yourself. Sologub also knows that some meat producers to limit supply in the network, because to increase several times a week meat production is unrealistic: the average broiler grown for 40 days, piggy – 175 days.

In Cherkizovo confirm that there has been a significant increase in demand from networks and wholesale channels. At the request of retailers, the company increases the volume of supply in retail. The companies of the group redistribute the volume of shipments, sending most of its products directly to the stores.

According to Elena Connoway, X5 increased the reserves (at least according to groups of conservation) at the distribution centers of Moscow since February, as the network had expected a surge in sales after pero reports of coronavirus. But now the company increases orders for suppliers. However, if we provide promptly the doubling is still possible, but five to six times to increase the production of goods, to find additional transport to the warehouses to deliver at each store (including a small “at home”) is impossible. However, X5 has managed to increase the supply of socially important goods from the warehouses to the stores in 2-4 times, to adjust the rules of calculations, some of the goods were exhibited in stores pallets to provide the increased demand for them. “Logistics seriously help the authorities promptly organised the passes are going to meet on the issue of axle load”, lists Konnova. Also increased the number of staff in stores, canceled all leave, modified schedule, work brought additional staff. Was redistributed transport for distribution of categories of high demand shops are monitored online, and the flows of goods are redistributed to where recorded particularly high demand.

Shopping network is now taking a range of measures to maintain the stability of the supply chain, knows the representative of the Association of retail companies (akort) Ilya Vlasenko. Increased vehicle fleet, employed additional personnel for unloadingloading personnel to work in distribution centers, change traffic patterns, reduce periods of delivery of products to stores and increasing the number of deliveries, increasing the number of products sent to the stores, taking into account changes in demand over the past day.

the Expert recalled that at retail for delivery in a trading network there are two traditional channel – domestic production and imports. In previous years, the imports of food products decreased significantly, the domestic manufacturers actively develop production. Therefore, heavily dependent on imported food (and hence the dollar) we have.

“Retail purchases products for the xinjuries and deliveries to retail outlets constantly replenish stocks. In this case only the current stocks of goods, if to stop any purchases will last for a few weeks. So manufacturers have time to organize additional production, for example in poultry,” – said Vlasenko. In addition, a possible increase in imports from neighboring countries (mainly from Belarus).

the same poultry or pork in Russia there is now a surplus. Only in 2019 produced more than 5 million tons of poultry meat and more than 3.9 million tons of pork, cites Victoria Abramchenko. She notes that over the past 15 years the consumption of meat and meat products increased by 38% to 76 kg per person per year, while global meat consumption in the world does not exceed 43 kg. And, for example, the remains of buckwheat was only in the Altai region 365 thousand tons. 22 thousand tons available in the Oryol region, also the stocks of buckwheat there are still more than 20 regions of the country. The rest of the raw rice at the processing enterprises in Krasnodar territory is more than 180 thousand tons, 148 thousand tons of raw rice available in the warehouses of agricultural producers. In Russia gathered about 200 thousand tons of vegetables in winter greenhouses, or 33.6% higher than the record levels of 2019.

Seriously increase the food production for the Russian manufacturers not only technologically impossible but also does not make sense, says CEO of the Institute for agricultural market studies Dmitry Rylko. “We will not be able to eat much more than eating now. Now if we skip out of the freezer and the meat, when the hype is over, will be rolled back. And eventually everything will return to normal”, – the expert believes.

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