Dairy

07/ 02/ 2011

On 28 January the Ministry of Agrarian Policy and Food has published the Draft Cabinet of Ministers’ Resolution “On the amounts of payments allocated for state support of animal production for 2011” which foresees the payments to individuals for the delivered milk in amount of 30 copecks per 1 kg.

Following the adoption of the Tax Code of Ukraine in the end of 2010 that has abolished the system of subsidies to agricultural milk producers through the automatic VAT reimbursements from dairy processing companies, the EBA Dairy Committee elaborated proposals as to further support of milk producers aimed at productivity and quality of milk. In January 2011 EBA Dairy Committee’s proposals have been submitted to the Ministry of Agrarian Policy and Food together with the detailed analytical overview and calculations. Also several meetings with the representatives of the Ministry took place to discuss these proposals.

On 28 January 2011 the Ministry has published the Draft CMU Resolution regarding the amounts of payments which, in particular, incorporates the EBA proposals as to the payments to individuals for the delivered milk in amount of 30 copecks per 1 kg.

In the opinion of EBA Dairy Committee, such payments will stimulate milk deliveries by individuals for its further processing which, in turn, will promote the increase of quality and productivity of milk, improvement of the financial state of agricultural producers by means of their financial support as well as stabilization of purchasing prices of raw milk.

EBA hopes for the final adoption of the Resolution by the Cabinet of Ministers of Ukraine.

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