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February 28, 2022updated 01 Mar 2022 4:48pm

Ukraine crisis hits Lactalis production

The world’s largest dairy company has three factories and 850 staff in the country.

By Dean Best

Lactalis, the world’s biggest dairy business, has halted production at one of its three factories in Ukraine.

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The French giant, which employs 850 staff in Ukraine, said its facility in Nikolaev in the south of the country “is down today (28 January) due to nearby combat zones”.

Lactalis said output at its two other plants – in Shostka in northern Ukraine and in Pavlograd in the east – had also been affected.

“Activity at our sites in Shostka and Pavlograd has slowed down, these sites only receiving one to three truckloads of milk per day,” Lactalis said in a statement sent to Just Food.

“We were able to make a few shipments of products to the most spared cities in order to limit the shortage of food for the populations. We will strive to maintain our contribution to feeding populations within the limits of ensuring the safety of our employees, suppliers and customers.”

Lactalis markets butter, milk, cheese and yogurt in Ukraine, with its business in the country generating around EUR100m (US$112.1m) in sales. Its plants in Ukraine also export to markets including Georgia and Moldova.

The family-owned business, which acquired the Shostka factory last year after buying assets from French peer Bel Group, outlined how the conflict could hit supplies to its factories.

“Certain shortages – for example, soda dedicated to industrial cleaning – are to be feared and could compromise the maintenance of site activity. The teams are thinking about the best solutions to maintain production for as long as possible,” it said.

Lactalis added it was “also closely monitoring the situation of our sites and our employees based in Russia”.

On Thursday, Nestlé said it halted the manufacturing and distribution of its products in Ukraine, where it has three factories and 5,000 staff.

Meanwhile, reports yesterday said Grupo Bimbo, the world’s largest bakery business, has suspended operations at its plant in the country.

For more on Just Food’s coverage on how the conflict in Ukraine is affecting the food industry, please visit our dedicated microsite

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Disruptive start-ups to watch out for

2021 was a record-breaking year, with more businesses breaking into the billion-dollar club. Many start-ups have achieved or retained the unicorn status by the end of the year to reflect nearly a fivefold growth from that in 2020. This boom can be linked to a financing frenzy spurred by the quick adoption of technology and innovative solutions by start-ups gaining traction in response to the pandemic. However, the start-up ecosystem is now facing turbulent times for fundraising as investors seek long-term business strategies, valuations, and a route to profitability amid uncertain market circumstances. Nevertheless, 2022 has the potential to carry forward the momentum with multiple entities having a fair chance of being in the right place when aided by the right technologies. GlobalData leverages the power of alternative data to examine the health of start-ups across multiple dimensions including the quality of their innovations, market presence, and the funding they can attract. This helps our clients to analyze the disruptive potential of start-ups for early alliances, investments, and acquisition prospects to develop future-proof strategic roadmaps for a competitive advantage. Read our report and gather insights on the following topics:
  • Recent Unicorn trends
  • Unicorns in 2022
  • Future Unicorns
  • Start-ups to watch out for
Start-up ecosystem outlook by top geographies
by GlobalData
Enter your details here to receive your free Whitepaper.

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