Hares have been stopped at Ukrproduct, a Ukrainian-focused dairy maker listed in London.
The business of the Jersey headquarters, which has brands such as Creamy Valley Butter and Morendam Cheese, was hit hard by Russia’s invasion of Ukraine, export restrictions to the country, and a “18%” rise in milk prices in the market.
The company said in its latest transaction information that it faced “some global challenges” and that there was a “rapid and ongoing shortage of dairy ingredients.”
The group said rising costs for “energy and transportation” also caused further problems for the business.
Last year, the company’s revenue was £ 51.9m, down 6.4% from the previous year. Net income was £ 300,000 compared to a loss of £ 1.2 million in 2020.
Ukrproduct said it achieved 11% year-on-year growth in the Ukrainian domestic market, surpassing expectations in last year’s branded dairy sales, despite the harsh global environment and “limited marketing efforts.”
The company states: “Trade in 2022 is heavily influenced by Russia’s invasion of Ukraine and the ongoing war.
“10 of the 24 Ukrainian regions have experienced serious military damage, and overall, these 10 regions supply 42% of Ukrainian milk. In addition, infrastructure damage, And rising fuel prices to make up for fuel shortages have impacted transportation and negatively impacted logistics costs, both on the supply and distribution sides.
“Ukrainian seaports are blocked by the Russian Navy, increasing pressure on the rest of the export routes.”
Ukrproduct said it will “provision” some distributors engaged in military operations and operating in areas where invoices cannot be paid in time.