The Ukrainian Stock Breeders Association presented effective mechanisms of state support of cattle breeders at an open meeting in the Ministry of Agrarian Policy

The meeting, organized at the initiative of the Ukrainian Stock Breeders Association and the National Committee for Industrial Development, in conjunction with the Public Council of the Ministry of Agrarian Policy and Food of Ukraine, was aimed at expressing the proposals of industry participants (representatives of industry associations, businesses, etc.) to support producers who should be taken into account when the Government adopts the Agrarian Sector Support Program in key areas within the State Budget for 2018.

The Ukrainian Stock Breeders Association in active cooperation with its members (a sociological poll on a sample of about 5,000 Ukrainian livestock producers was conducted) proposed its proposals that could provide real support to producers.

However, unfortunately, the day before, on February 7, at the meeting of the Cabinet of Ministers the First Deputy Minister of Agrarian Policy Martyniuk M. submitted draft resolutions on the allocation of funds from the state budget for various areas of expenditure, developed without discussion with producers and the public, which were adopted by the Government.

Nevertheless, one of the proposals, with which the USBA repeatedly appealed to the Cabinet, the Ministry of Agrarian Policy, to the Prime Minister of Ukraine, namely, the need to support young cattle on personal peasant farms, were taken into account in the adopted program.

However, there were still a number of unresolved issues, about which Iryna Palamar, the chairman of the USBA, spoke at this open meeting. And although it was not easy to perform (some of those present - supporters of the old bureaucratic system of financing - tried to interrupt the speaker, deviated from direct "uncomfortable" questions), the head of the USBA clearly expressed the Association's opinion on this issue, and all real producers and heads of industry associations , constantly face the problem of inefficient mechanisms for providing state aid.

Presenting the proposals of the Ukrainian Stock Breeders Association to support the industry, the speaker emphasized that in the last year of 2017, not only was insufficient funds allocated for livestock raising (only 170 million UAH), they were also used very inefficiently.

"93% of this amount went to pay off receivables, and only 7% for development - noted Iryna Palamar. - And did someone check whether these enterprises really exist, where were the funds paid for the debts? That is, we, the livestock keepers, do not understand where this money went.

In addition, there was an opaque dynamics of the use of these funds. For the most part, expenditures for the development of funds were made only in the third quarter of 2017 ".

Further, Iryna Palamar highlighted specific mechanisms for supporting livestock keepers, which were developed by the specialists of the Association of Young People's Artists on the basis of close cooperation with its members.

• In particular, in order to ensure transparency in the use of state support funds, it is proposed to create an open register of projects submitted for approval, so that everyone can clearly see how many projects have already been submitted and approved, how many funds have already been disbursed and how much is left.
• Deregulation of the activities of the commissions on reviewing and approving projects for compensation.

"If it is impossible to completely abolish commissions, at least let them include members of various industry associations and journalists so that they can ensure transparency in making decisions about compensation by the members of the commission," comments Iryna Palamar.

Simplify the approval of project documentation for the reconstruction and construction of livestock complexes.
"To date, the Government has proposed 2 ways of obtaining funds for construction: through banks and through the Ministry of Agrarian Policy. However, I can say with confidence that banks are not ready to give money for the construction of pig-breeding complexes, since insurance agencies refuse to insure such projects because of the high risk of ASF. Therefore, for pig producers there is only one way to receive funds for construction - through the commission of the Ministry, where the manufacturer can apply with project documentation. However, there are many bureaucratic obstacles. In this regard, we emphasize that it is necessary to simplify the approval of project documentation: for example, it is automatically coordinated in a situation where residential buildings are built in time later, after livestock complexes; ensure priority allocation of land for the construction and proper functioning of livestock complexes, etc."

Another problem Iryna Palamar called the lack of liquidity of enterprises, which they began to feel because of a lack of working capital in connection with the abolition of quasi-accumulation.

Shortage of working capital will cause a number of negative consequences, in particular:

For pork producers to:

•   reduce the liquidity of existing enterprises in the industry by 8-15%;
•  increase in the payback period of investment projects from 4 to 6 years;
•  reduction of livestock by small and medium-sized producers and replacement by import by 8-15%. For milk producers up to • the growth in the payback period of investment projects from 6 to 8 years;
• decrease in liquidity of operating enterprises of the industry by 10% and reduction in the number of livestock;
•  stop the build-up and renewal of livestock due to highly productive animals imported from abroad.

For beef producers:

• loss of economic meaning of beef production (excluding export contracts);
•  95% of dairy farms will get rid of calves at an early age before the 1st month.

Therefore, it is proposed to provide concessional loans for investment projects and turnover costs of enterprises. In particular, according to the calculations of USBA specialists, the amount needed to compensate investment projects and their turnover costs is 166 million UAH, and 500 million UAH for compensation of current assets of enterprises.

Otherwise, the shortage of working capital will lead to a loss of liquidity of enterprises, which in turn will lead to a reduction in the number of livestock to 10% and the risk of closure of enterprises to 10%.

An important issue, which the speaker expressed, is the allocation of some funds to the infrastructure of the livestock complex, in particular, the construction of feed shops and feed mills.

"Today, we import about 40% of feed, - said Iryna Palamar. "Is this true for a grain country?" Why can not we produce them here in Ukraine? After all, if there is a currency jump tomorrow, the cost price of meat production will increase immediately, accordingly, it will become even more expensive for the consumer. But today in Poland, for example, a kilogram of pork costs 42 UAH. And if the cost of feed increases by at least 20%, then we will not be specific at all, the producers will not make sense to engage in this business. "

Iryna Palamar also stressed the need for subsidies for pig production and dairy cattle breeding. In particular, it is suggested to allocate 2 UAH / per 1 kg of pork and 2,000 UAH per 1 milk cow per year.

As a result of the speech, Iryna Palamar read an open letter to the Prime Minister of Ukraine Volodymyr Hroisman, which was prepared by the Association and signed not only by the members of the USBA, but also by other major producers of livestock products.

"We will stand up to the end. I hope that both the Cabinet of Ministers, the Prime Minister, and the Public Council will support us, and this year we will make livestock production really develop, and the livestock finally began to increase, " sums up Iryna Palamar.