Dairy

15/ 03/ 2011

On 2 March 2011 the Cabinet of Ministers of Ukraine adopted the Resolution №181 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.

The EBA has consistently advocated for the system of subsidies to milk producers based on the quality and quantity of milk. Following the adoption of the Tax Code of Ukraine in the end of 2010 that abolished the system of subsidies 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 the proposals have been submitted to the Ministry of Agrarian Policy and Food and several meetings with the representatives of the Ministry took place to discuss these proposals.

We are happy to announce that on 2 March 2011 the Cabinet of Ministers has adopted the Resolution regarding the amounts of payments which, in particular, incorporated 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.

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