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Prime Minister assures Government has developed mechanisms to encourage livestock breeding, thereby expecting a significant increase in livestock population and milk production during the year
16.01.2018 | 12:34
INFORMATION AND COMMUNICATION DEPARTMENT OF THE SECRETARIAT OF THE CMU

The Cabinet of Ministers of Ukraine has finally agreed mechanisms of support for agricultural producers, primarily in livestock breeding sector, and expects that the use of all developed solutions will allow this year to significantly increase the number of milk production complexes, farms, to grow livestock population, the volumes of milk production and other agricultural products. Prime Minister of Ukraine Volodymyr Groysman said during a special meeting dedicated to issues of agricultural sector development.

The Head of Government stressed, first of all, it concerns the incentives for the average agribusiness - both in the segment of crop growing and in the livestock agriculture. Meanwhile, the situation in livestock farming requires a prompt response: last year, for example, beef and milk production fell to record low.

"Therefore, by the end of January, we are drafting a product, in February we are coming up with programs, in March we are launching work," stressed Volodymyr Groysman. "We shall bolster the domestic market (of livestock products), support export and settle the situation."

On the proposal of the Government, the total resource allocated for livestock breeding support will amount to UAH 4 billion this year. Funding is to be directed, in particular to provide incentives for the construction of new farms and complexes - either by providing cheaper loans for building activities, or by compensating for part of funds spent by producers on construction. Maximum credit resource – EUR 10 million per production complex at 3% interest rate per annum for 5 years. Maximum compensation amount is 25% of the expenditure incurred by producer. If necessary, according to the results of the first half-year of effect of the programs, the mechanisms can be adjusted. At that, according to the forecast, by the end of 2018, the growth of livestock population is expected at least 11%, while milk output - not less than 5%.

"In a week’s term we must present final financial decisions. I am seeking to achieve the increase in cattle stocks, growing milk production, balancing meat products in the domestic market and, as a result, a moderate price for the whole range of products. I encourage to build - please, erect new farms", stressed Volodymyr Groysman.

The Government shortly plans to approve the program for the development of horticulture. The budget allocation for the said sector will make up UAH 300 million, the  aim of investing is to increase the area of gardens by more than 3000 hectares, to attract new technologies of storage and processing of fruits, and also to create nearly 30 thousand new jobs. "Within a week we will present a new support program for horticulture", the Prime Minister stressed.

The attendees of the meeting placed a special emphasis on the implementation of the program of compensation for the cost of agricultural machinery, to this end a sum worth UAH 1 billion is planned in the state budget. The Head of Government recalled that last year the program had proved its effectiveness, and now it is possible to gradually expand the range of its participants. "We provide an opportunity for agrarians to choose the equipment according to their needs, but we compensate only that technique, which has a serious percentage of production localization in Ukraine," the Prime Minister accentuated.

Another equally important issue is the introduction of a farm development program with the budget of UAH 1 billion. At the Government’s initiative, funds will be directed to ensure a drastic reduction of interest rate up to 1% for the purchase of equipment, seed selection, and the provision of advisory services. The only state requirement is the complete and fair registration of livestock and land by farmers. "I want a class of farmers, farmers' co-operatives to emerge in Ukraine. This year, we allocate a billion (UAH 1 billion), and then the amount of funding will be increased", Volodymyr Groysman underscored.

Background

The agrarian sector of Ukraine is determined as one of the engines of national economy, and therefore, the issue pertaining to effective state support for agricultural production is one of the topmost priorities of the budget process. Moreover, the focus is on supporting small and medium-sized businesses, which can fill the domestic market and strengthen the export opportunities of large farms.

 

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