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Why Ukraine suffers from lack of sanitizers?

Author : Pro-Consulting Company

Source : PRO-CONSULTING

At the end of 2019, the sanitizer market amounted to about 4,000 tons in Ukraine
10:00, 7 April 2020

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Nowadays, there are two stages of Ukraine’s sanitizers market – before the beginning of 2020, when demand was stable and limited to the B2B market (primarily medical institutions and laboratories, food production and HoReCa, where sterility is important) and small sanitizers for personal use, and after the beginning of 2020, when demand rose sharply.

At the end of 2019, the sanitizer market amounted to about 4,000 tons: 1,000 tons of imports and about 3,000 tons of domestic production. At the same time, about 70% of the consumption of sanitizers and disinfectants in Ukraine belonged to the B2B segment.

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Against the backdrop of the coronavirus and quarantine pandemic, there has been a sharp jump in demand for sanitizer agents. Ukraine suffers from a shortage of disinfectants and sanitizers.

Disinfectant deficiency was caused by two main factors:

  1. "Bureaucratic barrier"
  2. Lack of raw materials for manufacturing

First, in 2018-2020, manufacturers of disinfectants faced the inability to carry out state registration of sanitizers, which is necessary because of the high content of ethyl alcohol.

For this reason, in March 2020, the Cabinet adopted a resolution, according to which the registration of disinfectants was regulated on the basis of the conclusions of the state sanitary and epidemiological examination. It is expected that this will facilitate the entry into the Ukrainian market of the required amount of high-quality and safe disinfectants and, accordingly, reduce the share of the shadow turnover of sanitizers.

Secondly, there is a shortage of raw materials on the market, in particular isopropyl alcohol, used for the production of sanitizers agents due to the Ukrspyrt (Ukraine’s state-owned enterprise of alcohol and liquor industry) monopoly, which lasted until early 2020 and was accompanied by inefficient management of the enterprise. As of the beginning of 2020, almost half of the state-owned enterprises were closed.

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Ukrspyrt states that additional plants of the company would work for these purposes. Ukrspyrt will produce a disinfectant until April 30, operating 43 production sites with a capacity of about 82,000 decalitres per day. Currently, Ukrspyrt produces only 26,000 decalitres of alcohol per day, that is, it works at 31% of its declared capacity.

Read the original text at Pro-Consulting

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