"The prime cost comprises 45% of our meat products' value, and 'supermarket returns' account for 36-37%. Additionally, there are other expenditures, administrative and the like ," Irakli Dumbadze, Director of Leaderfood, stated at the meeting of the Parliamentary Commission to Study the Pricing Structure of Food Products, Medicines, and Fuel.
"Here we should add administrative costs and a centralized distribution system. Net profit is around 5-6%. "I think this effectively highlights our problem," Irakli Dumbadze notes.
As for payment ways, Irakli Dumbadze notes that the payment processing timeframe is 30-40 days and differs depending on the payment network.
"Here there are internal problems as well, though not on such a significant scale. I'm talking about payment delays that can last for several days. They usually manage to pay us more or less on the schedule outlined in the contract. Still, these amounts are quite large and significant," Irakli Dumbadze explains.
