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
the situation in livestock farming requires a prompt response: last year, for
example, beef and milk production fell to record low.
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
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.
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.
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.
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
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