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A major focus of the Company for the future is the development of its own brands, by means of proprietary products as well as joint partnerships with existent brand name suppliers. The company expects to produce higher profit margins. The Company has recently made a dramatic step to accomplish this goal. In August 1998 F & D signed a definitive agreement to acquire one of the largest milk processing plant in Europe based on the daily production. Located in Balta, in the Ukraine, the plant was originally built by Abbot Laboratories. The state of the art plant has the capacity to process 400 tons of milk per day.The plant has commenced production of powdered milk, sour cream, butter, kefir (yogurt), and baby food as well as extended shelf life milk. Plans to expand distribution of these products will include not only the Ukraine and the CIS but also all around the world.As indicated above, the heart of the Company distribution system is at the Company&＃39;s major six-story facility in Odessa, with regional warehouse facilities in seven other Ukraine cities. The Company&＃39;s customers are serviced by its own experienced marketing and sales staff. Once customer orders are received they are processed and normal deliveries are made within twenty-four hours by a fleet of delivery vans and refrigerated trucks. Due to the Company&＃39;s financial strength it is able to extend to thirty-day terms to it credit losses are minimal. In the near future the Company intends to extend its network of regional distribution facilities and its network over all of Ukraine.