A reliable system of agricultural insurance will help minimize the risks in livestock production

Submitted by bashun on Fri, 06/15/2018 - 13:57

Like any branch of agriculture, livestock is an industry with a high risk. That is why in Ukraine, diversification and development of agricultural insurance systems is necessary, so that producers with the help of appropriate tools can counteract risks and losses not only in the sectors of crop production, but also livestock production. This was said by the Deputy Minister of Agrarian Policy and Food of Ukraine, Olena Kovaleva, during the roundtable on "Potential for Financing Dairy Farms and Insurance Solutions for Future Business Development", organized by the International Finance Corporation (IFC) on June 12, the press service of the Ministry of Agrarian Policy reported.

The event was attended by the Chairman of IFC's regional representation in Ukraine, Belarus and Moldova Jackson Pelmar, leading IFC experts, banks, insurance companies, profile associations, reinsurers, brokers and market participants.

"The development of livestock in Ukraine is one of the priorities of the Ministry of Agrarian Policy. We are looking for insurance solutions to save and increase the profitability of small dairy farms and minimize the risks associated with the cattle breeding industry. The Ministry of Agrarian Policy and the IFC are working together to improve the legal and regulatory framework and the institutional component of agricultural insurance in Ukraine," the Deputy Minister noted.

Olena Kovaleva added that the achievement of this cooperation today was the creation of the Agri-Insurance Sector, whose task is to improve the regulation of the agricultural insurance system in Ukraine, which will stimulate the development of this market.

During the round table, the main speakers presented the results of a study of the livestock sector in Ukraine and proposed recommendations and insurance solutions that could increase financing of dairy farms in Ukraine. In addition, a specially invited expert, the chief specialist for financing the agricultural sector of the Dutch bank Rabobank, shared the successful experience in lending to dairies and veal producers in the Netherlands (including risk assessment techniques).

In 2018 the Government provided 4 billion UAH for state support to the livestock sector and 1 billion UAH for support of farming and cooperation. The main emphasis of state support of farming is on the development of livestock and the processing of products in small quantities, in particular, on a cooperative basis.

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