Manufacturers of baby food whose products are labeled in the Honest Sign system may be exempt from paying for labeling codes.
"As the operator of the labeling system, we are exploring the possibility of exempting manufacturers of baby food products from paying for codes. So that these codes are free for manufacturers," said Revaz Yusupov, Deputy General Director of the CRPT, at the session of the Eastern Economic Forum.
The economics of the issue consists of the number of units. The code is ordered for each product unit, and baby food is a small package and high turnover: a can of mashed potatoes, a bag of porridge, a bottle of juice. With production volumes in the tens of millions of units per year, the code fee becomes an independent expense item that puts pressure on the shelf price in a socially sensitive category.
The context of the statement shows that the topic is broader than one benefit. At the same session, Yusupov noted that these labeling systems capture the concentration of the market not where raw materials are available, but in regions with sustainable processing, and pointed to the production capacities of the Far East in the dairy segment.
An important limitation for the reader: this is a study, not a solution. Neither the dates, nor the list of product items, nor the mechanism for compensating for the operator's shortfall in revenue have been publicly announced. It is too early to plan the cost at zero cost.
What it makes sense for manufacturers and importers of baby food to do. Calculate the current cost of codes by year and separately their share in the cost of a unit: the figure will be needed when discussing the initiative through industry associations. Keep an eye on the wording: the exemption may apply only to manufacturers and not to importers, and this is a fundamental difference for those who import finished products. And do not delay the technical preparation for labeling: the benefit, if it appears, will concern the payment for the codes, and not the obligation to apply them.
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