The Ukrainian AgriCouncil (UAC) has submitted proposals to the Plan for the Recovery of Ukraine, which is being developed as part of the work of the National Council for the Recovery of Ukraine from the Consequences of War, established by the President of Ukraine. The UAC's proposals include priority initiatives for both the war and the post-war period, as well as a long-term strategy.

During the war phase, the main problems are the restriction of exports due to the blockade of ports; threats to lose a part of the harvest 2021/2022 MR; increasing of logistics cost, fuel shortages due to the destruction of fuel storages and difficult logistics; projected shortage of grain trucks and fuel vehicles; processing crisis, due to the inability to preserve its by-products. "For example, cake, meal - spoil faster than it is possible to export or consume them inside of the country," explained in the UAC.

The decision of the UAC - is an active lobbying in the UN and NATO for the introduction of "Blue Convoys" of ships that will enter the ports of Ukraine to export agri-food products, quotas of the Railways of Ukraine capacity for various products, redistribution of quotas in favor of higher value-added goods and short shelf life.

"Without an increase in the share of grain and oil exports from 14% to 44% (pre-war share of foreign exchange earnings), sowing will be under threat next year," the UAC said.

Emphasis in the proposals to the Recovery Plan of Ukraine is made to solve the problem of irrigation and animal husbandry development

The main problem in pig farming today is the export isolation connected with ASF (African swine fever). Solutions that are offered:

  • establishment of the State Service of Ukraine on Food safety and Consumer Protection region, which are free from ASF,
  • prohibition of yard slaughter and mandatory identification of animals in households,
  • in order to accelerate the construction of modern large processing enterprises, inclusion in the state support program through advance co-financing of approved projects,
  • continuation of the program "Affordable loans 5-7-9%".

As a result, the livestock is expected to be increased by 1 million (up to 4.5 million) and increase to 25,000 jobs in the industry.

The main problems of the animal husbandry are strict tariff restrictions on exports to EU countries; destruction of capacities in regions of hostilities, export of breeding livestock, due to migration and purchasing power of accumulation of processed products from processors, low efficiency and uncompetitiveness of available capacities up to 1,000 heads and processing plants.

The UAC offers:

  • indefinite abolition of tariff quotas on imports to the EU or setting a schedule for their increase;
  • inclusion in the state support program through advance co-financing of approved projects,
  • continuation of the program "Affordable loans 5-7-9%",
  • granting a separate quota for the priority export of heifers and processed products; - to adopt the law on patronage dividends in cooperatives for the construction of large modern cooperative plants.

"Under condition of the EU export markets opening, we can expect investments (USD30-80 million) in the construction of 2-3 meat processing plants, growth of industrial livestock to 1 million (+ 5-7 thousand jobs), plus USD500 million of export revenue, as well as the conversion of 3 million tons of grain into livestock. Construction and reconstruction (restoration of damaged) dairy complexes (USD 11 million, 10 thousand cows) with the release of biomethane," the UAC commented on the need to expand export opportunities for livestock.

Regarding land melioration, the UAC proposes to introduce some measures and, as a result, they will help to attract investments of USD4 billion to the industry, create energy and water modernization of reclamation systems, construction of new ones, pumping stations construction and reconstruction, to bring the industry closer to environmental standards, as well as get 11 million tons of additional gross production and UAH135 billion gross value.

Thursday, 12 May 2022

 

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