An open letter to Prime Minister of Ukraine Volodymyr Hroisman

On January 7, 2018, the Government at its meeting had already adopted a resolution "On approval of the procedure for using the funds provided for in the state budget to support the livestock sector", which of course accelerates the implementation of budget programs, but unfortunately the adoption of the act passed without discussion with the public. Therefore, it is very important to finalize the directions and mechanisms of state support to the livestock sector, to take into account the real needs and needs of agricultural enterprises as much as possible, having made appropriate changes to this decree.

The Ukrainian Stock Breeders Association as the most specialized branch association of the livestock sector and its agricultural producers among the priority directions and mechanisms of state support to the livestock sector offers to:

1.  Simplify the coordination of design documentation for the construction and reconstruction of livestock farms and complexes when received through commissions in the areas of partial reimbursement of the costs incurred during the completed construction and reconstruction phases in the current year.

Unfortunately, for loans to pork producers, it will be quite difficult to obtain compensation for the construction or reconstruction of livestock farms and complexes (an alternative mechanism for support under the new Order), because banks consider the swine projects risky, do not want to lend them, and insurance companies do not want to insure their risks.

2. Introduce compensation for interest on loans to current assets of the existing enterprises of industrial pig breeding and cattle breeding (not only for sheep breeding, goat breeding, beekeeping, fur farming, rabbit breeding, sericulture, aquaculture).
3. Provide a budget subsidy for pork producers, at least in the amount of 2 UAH per kilogram of pork as a partial support canceled quasi-accumulation of VAT..

Producers of pork because of the cancellation of quasi-accumulation of VAT already incur serious losses (reduced liquidity of enterprises, shortage of working capital, increased payback of investment projects) and require alternative support.

4. Provide for partial reimbursement of the cost of construction and reconstruction of enterprises of the infrastructure of livestock complexes: technological feed mills and shops, factories for the production of fodder in order to increase the localization of their own production of feed. 
5. Introduce payment of partial reimbursement of the cost of construction and reconstruction of livestock farms and complexes quarterly (and not at the end of the year) on the basis of applications for which the commissions made positive decisions and as the stages of construction and reconstruction are put into operation..
6. Make an open register of subjects of state support recipients for partial reimbursement of the cost of construction and reconstruction of livestock farms and complexes, milking parlors, enterprises (workshops) for processing and storing agricultural products.
7. Deregulate the activities of the commissions that decide on the allocation of state support (ensuring mandatory participation of the public in their composition).
8. Restrict the use of funds from the state budget in the current year to pay off accounts receivable for the past years in the amount of up to 30% of the envisaged financing under budget programs and allocate most of the funds for development.

In connection with the foregoing, we ask you to urgently instruct the Ministry of Agrarian Policy and Industry of Ukraine to begin the process of finalizing the adopted procedure for using funds from the state budget to support the livestock sector on February 7, 2018 by introducing appropriate changes and incorporating the specialized association of cattle breeders of Ukraine and its producers.

Association of livestock producers in Ukraine and producers:

Niva Pereyaslavskii, Joint Venture Company

PAP "Agroprodservice"

Rentier Ltd.

Halychyna-West Ltd.

Bakhmut Agrarian Union PRAT

Slobozhansky AK PAO

Agricultural company "Orlovschina" Ltd.

Zhuravka LLC

Dan-Farm Ukraine Ltd.

Zootechnology, LTD

FG "New Level 2006"

Ecogenetics Ltd.

LLC "Elita"

Tarutin Agrarian Company Ltd.

Kamchatka Ltd.

Chornobai Meat LLC

Clearing Agro DP

Leader, LTD

Yavor-Agroservice PP

Agroind LLC

PAP Topilche

PP "Rostislav & K"

State Enterprise "Dnepr" of the Institute of Agriculture of the steppe zone of NAASU

LLC "Ukragrokhim"

Minich SFG

LLC "Green Brama"

FG "Shpilokolos"

Plamservice PJSC

FG "Lanagroprode"

Agro-Avangard FG

Agrofirma im.Shevchenko Ltd.

Bilovodsk breeding plant Ltd.

Envir LLC

PE "New Level"

FP Shneydruk Dmytro Stanislavovich

FOP Kucyk Nikolai Mikhailovich

PE "Dzuba"

Forward Ltd. AF

Simirenkovsk TOV

Prestige Agrolux FG

"Revival"

Agricultural production cooperative "Russia"

FOP Tkachenko Alexander Viktorovich

Farmhouse "Veritas-Agro"

PE "Kurochkina Albina Vladimirovna"

PP "Denyiivka"

DP of DG "Shevchenkivske"

Agro Dibrovka Ltd.

Podolsky Bacon Ltd.

Agro - Union of PrAT

Agroprodservis PAP

Barcom Ltd.

Chebeni Plus

Agrocomplex Ltd.,

Demetra PP

Nikonenko R.V., FOP

Smith SFNVG

Princess FG

IDA SZTZOV

Promin JV

The letter is open to signing by other agricultural producers, and the list of producers who support it is constantly updated.