Factors that affect pricing at the agricultural market of Ukraine were discussed during an online meeting of UAC participants with representatives of a leading agro-trader - the group of companies "Agroprosperis Trade". The meeting was organized by the UAC Deputy Chairman on Tax Policy Olha Boghanova,.

Director of economics and taxation at the group of companies “Agroprosperis” Viacheslav Sahan, spoke about Ukraine's place among the world's grain exporters and explained how the price of grain in the domestic market was formed. In particular, he pointed out that prices for agricultural products in Ukraine are formed under the influence of export prices excluding VAT.

"Traders focus on prices at the Chicago Board of Trade - the price rises on it, as a result it rises in Ukraine. It falls at the stock exchange - it falls in our country too. This is an indicator of where prices will go. Trader - is not a major player in the market. However, we set our prices in reverse. After all, the closer the product is to the consumer, the more expensive it is. Therefore, there is a certain margin at each stage of delivery,” Viacheslav Sagan explained.

The director for agricultural products purchases Maksym Vynokurov spoke about the influence of the reduced VAT rate on the agricultural market saying that they assess such changes positively.

"It's positive for several reasons. The trader's margin for the entire supply chain is USD 2-4. Whatever amount the trader pays, the total margin does not change. Therefore, the VAT rate reduction is a reduction for funds required for the purchase of agricultural products. There are no price losses for the agricultural producer, as export prices are formed without VAT. In fact, a farmer receives the same price without VAT. Also, one of the positives for a farmer is that the VAT rate of 14% for the agricultural products sale fully covers its VAT credit, even though it has decreased," Maksym Vynokurov said.

Speakers also spoke about price changes in early March. The UAC participants had the opportunity to ask questions about price formation and get comprehensive answers.