UPAA proposals on state support for the industry in 2020 were submitted to the Ministry of Economic Development of Ukraine


UPAA proposals on state support for the industry in 2020 were submitted to the Ministry of Economic Development of Ukraine

01/03/2020

Fruitful cooperation of the relevant ministry with industry associations should continue throughout the year

January 2, 2020, the first meeting of representatives of industry associations this year with the Deputy Minister of Economic Development, Trade and Agriculture of Ukraine Taras Vysotsky. The meeting was dedicated to discussing the proposals of agricultural associations for state support in 2020. The event was attended by over 50 representatives of industry associations, who presented their best practices and proposals. In particular, the manager for foreign economic activity of the Ukrainian Fruit and Vegetable Association Bogdan Rybalko suggested that representatives of the Ministry pay attention to issues of export subsidies and a reduction in the VAT rate on vegetables and fruits.

“One of the ideas of the UPRA is to receive an export subsidy. In the event that a link is made to the mass of exported products, the issue of corruption will be resolved, because such a scheme is quite open and transparent. For example, when you export apples, you get some compensation for selling apples abroad, but not leaving them in Ukraine. Obviously, such a scheme has several advantages. First of all, when it comes to export, it is always added value and foreign exchange earnings. Secondly, this is the idea of ​​creating a budget that can be used both to create jobs and to increase the wages of workers, ”explains Bohdan Rybalko, proposal of the Ukrainian Fruit and Vegetable Association.

On the issue of reducing the VAT rate on fruits and vegetables, the Deputy Minister of Economic Development, Trade and Agriculture of Ukraine commented that this issue is already being discussed, and government representatives understand how the reduction will affect the fruit and vegetable sector and the budget as a whole. Taras Vysotsky noted that this issue will be one of the priority at subsequent meetings with representatives of associations.

Other participants in the meeting noted that some changes need to be made in the distribution of funds, since some of the needs that currently exist in the field of berry growing are not covered by state programs. According to representatives of associations, the programs that worked last year were quite effective and should be abandoned in the current year. Moreover, you need to pay attention to quality and products that comply with international standards. Also, for berry growing as an export-oriented industry, you need to create an infrastructure. Firstly, it is necessary to build refrigerators of a smaller capacity than existing ones. Moreover, experts noted that refrigerators are a necessary technological component of the cold chain for berries, regardless of whether it is a fresh market or freezing. Another important issue in the berry segment is indoor cultivation. If we talk about freezing, then Ukraine is a fairly large player in the European market, while Ukrainian products are almost not represented in the fresh market. Climate change and growing demands on the quality of berries require Ukrainian producers to switch to closed ground. At the same time, without the help of the state and partial compensation for the construction of greenhouses and tunnels, this transition is quite difficult.

At the end of the meeting, the Deputy Minister of Economic Development, Trade and Agriculture Taras Vysotsky identified several key areas that representatives of specialized associations drew attention to: changes in tax legislation, compensation for the acquisition of agricultural equipment and machinery, and manufacturers’ access to credit. Also, the deputy minister noted two segments that require changes in state support programs – this is horticulture and animal husbandry, including compensation for processing in these areas.

“We hope that government representatives will heed the advice of the meeting participants and will make changes to the distribution of funds for the current year. It is worth noting that, despite the interest of a large number of representatives of agribusiness in today’s event, opinions and suggestions of all participants in the meeting were heard. We hope that the fruitful cooperation of the relevant ministry with industry associations will continue throughout the year, as associations, like no one else, understand the problems of Ukrainian manufacturers, ”said Katerina Zvereva, Director of Development at the UPAA.

Recall that the UPOA defends the interests of producers and exporters of fruits and vegetables and has repeatedly participated in meetings and asked questions regarding the support of gardeners, compensation of planting material, refrigerators with CWGs, sorting lines, freezers, bans on the export of fruits and vegetables, as well as the opening of new sales markets. In September 2019, the UPRA influenced the opening of the EU market, which for several days was not available to exporters of fruits and vegetables.

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