Zhytomyr deputies ask for preferences for domestic producers

Deputies of the Zhytomyr Regional Council want to send an appeal to the Verkhovna Rada on the need to adopt bills to support the country's dairy industry.

The corresponding draft decision of the session, prepared by the Department of Agro-Industrial Development and Economic Policy of the Regional State Administration, was published on the website of the Regional Council on December 3.

“We, the deputies of the regional council, are concerned about the situation in the domestic market of dairy products. In recent years, there has been a massive import of dairy products to Ukraine, mainly from the countries of the European Union and the Republic of Belarus. According to the State Statistics Service of Ukraine, over the past four years alone, imports of dairy products to Ukraine in physical terms have increased 5 times - from 18.3 thousand tons in 2017 to 90.9 thousand tons in 2020. Along with this, since 2019, exports have decreased by 20%, and for certain items - critically. Thus, the export of dried whole milk decreased by 74%, butter - by 45%. The bad trends taking place in the domestic market of milk and dairy products are due to a number of factors. The VAT rate on dairy products in Ukraine today is 20%. In countries, exporting dairy products to Ukraine, the VAT rate is much lower: in Poland - 5%, France - 5.5%, the Netherlands - 6%, Germany - 7%, Hungary - 9%, Belarus and Russia - 10%. On the other hand, prices for raw milk in Ukraine are quite high compared to prices in European countries. The excess of the price level for raw milk in Ukraine in September 2021 was above the price level in Poland - more than 18%, Latvia - almost 23%, Belarus - more than 31%. Manufacturing enterprises are extremely concerned about this state of affairs, since this automatically reduces the competitiveness of domestic dairy products both in foreign and domestic markets,” the appeal says. milk prices in Ukraine are quite high compared to prices in European countries. The excess of the price level for raw milk in Ukraine in September 2021 was above the price level in Poland - more than 18%, Latvia - almost 23%, Belarus - more than 31%. Manufacturing enterprises are extremely concerned about this state of affairs, since this automatically reduces the competitiveness of domestic dairy products both in foreign and domestic markets,” the appeal says. milk prices in Ukraine are quite high compared to prices in European countries. The excess of the price level for raw milk in Ukraine in September 2021 was above the price level in Poland - more than 18%, Latvia - almost 23%, Belarus - more than 31%. Manufacturing enterprises are extremely concerned about this state of affairs, since this automatically reduces the competitiveness of domestic dairy products both in foreign and domestic markets,” the appeal says.

It is noted that, despite the availability of budget support, the crisis in the dairy industry has only worsened in recent years. The volumes of state support proposed by the budget for 2022 are not able to change the existing negative trends in the development of the dairy industry.

“If cardinal steps are not taken to increase competitiveness, then over the next 2-3 years, the dairy industry may be irretrievably curtailed,” the authors of the appeal note.

In order to overcome the negative processes, the Zhytomyr Regional Council proposes to urgently take a number of measures, namely:

provide state subsidies for producers of products of animal origin;

introduce a reduced tax burden, for example, a VAT rate of 10% for both raw milk producers and processors;

establish preferential prices and tariffs for energy carriers for raw milk producers and dairy processing enterprises, which will help reduce the cost of finished products;

introduce preferential loans for development with a lending rate within the limits of the NBU rate;

regulate the relationship of food producers with retail chains by accelerating the adoption of the draft law dated September 16, 2021 No. 6068 “On Amendments to Certain Legislative Acts of Ukraine on Establishing Favorable Conditions for Producers in the Sale of Food Products”;

improve the export strategy (economic incentives for exporting enterprises in the form of subsidies, state insurance of risks of foreign economic activity, creation of niches for Ukrainian products in foreign markets, financing of measures to promote products, etc.);

introduce restrictive quotas and higher percentages of import duties for goods supplied from countries where similar requirements for the supply of Ukrainian goods are established;

to strengthen the responsibility for falsification of food products by accelerating the adoption of the draft law dated November 1, 2021 No. 6248 “On Amendments to Certain Laws of Ukraine regarding food products and other objects of sanitary measures”;

other support aimed at developing the domestic economy.

“Given the foregoing, we are asking for the adoption of bills to support the domestic dairy industry, which will help preserve the national producer and provide the citizens of Ukraine with high-quality local dairy products at affordable prices,” says the appeal, which is scheduled to be considered at the session of the Regional Council on December 16, 2021 of the year .

zhitomir.info