Profitability of agricultural enterprises is catastrophically falling

Submitted by bashun on Tue, 11/14/2017 - 10:05

Profitability of domestic producers of agricultural enterprises is catastrophically falling from year to year.

This is evidenced by the State Statistics Service of Ukraine.

In 2016, the profitability of grain growers and truck farmers fell by 10% compared to the previous year. The cattle breeders are much worse off. Their profitability for the year fell by three times. In addition, if in 2015 their profitability was 22%, then in 2016 - only 7.7%.

Most affected meat producers. Their unprofitability increased from 5% to 17%, depending on the type of meat. This suggests that the profit of livestock producers does not cover the costs they incur during production.

To stabilize the situation, a mechanism was developed for granting state aid to the agrarians. Since January 1, 2017, livestock producers have been given budgetary subsidies in the form of 60-70% of the refund of VAT paid by them. However, this year a group of individual deputies decided to curtail this program.

"Budgetary support is to be cut by half, to 2 billion UAH, in 2018. This cuts down all of the state policy that was fixed for a long period last year. Why is it leveled? The explanation is very simple: the life cycle of livestock development was laid for three years That is, the effect of this program should be manifested in the second and third years of its implementation. Without cutting this program in the second year, we must either recognize the capitulation of our ideas, or inform the government that this can not be done, " explaines expert Pavlo Moroz.

If the government does not hear and select state support in the livestock producers, the consequences will not be long in coming: the rise in prices and job cuts will be inevitable, experts believe.

To turn our "faces to the cows" was proposed by the government and the leader of the "Radical Party" Oleh Liashko at one of the last sessions of the parliament.

"The key is a village, the restoration of livestock. In order to have life in the village, it is necessary that every yard has a cow. We require the government to provide subsidies, state support for the restoration of the livestock sector, the restoration of the cows in the village. We demand from the authorities to turn their faces to the cows, and the Ukrainians, "- says Oleh Liashko. 
 

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