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    Achievements of Ukrainian agro-industrial complex over the last 2 years

    The Government has summed up the results of work in agro-industrial complex. The Minister of Agricultural Policy and Food Supplies Nikolai Prisyazhnyuk introduced the results of the agricultural industry in each sector and emphasized that the agricultural producers and consumers should estimate the reforms in agro-industrial complex which had been initiated by the Cabinet of Ministers, however the Minister himself was satisfied with the achieved result.

    “I’m satisfied by the work done, by the team, co-operation and mutual understanding between the Government and Administration of the President allowing to resolve the issues which arise in agro-industrial sector”, - the Minister said. He emphasized that the agro-industrial sector attracts extra attention of the Government because “Ukrainian agro-industrial complex provides 25% of GDP of the country and 60% of the consumer market”.

    Two years ago during the formation of the new government there were tasks for the agricultural sector to be solved, such as development of main branches of the agro-industrial complex, development of the agro-industrial complex infrastructure, the agrarian reform accomplishment and reinforcement of foreign economic activity. “I think that we have progressed significantly in accomplishment of these tasks”, - Nikolai Prisyazhnyuk pointed out.

    What the Government is proud of

    Increase of the governmental support for the industry. 13.5 billion dollars were allocated for the industry in 2011 that exceeds by 1.5 times the last year indices. However, it’s worth mentioning that the direct support of agricultural producers in 2012 has been planned at the lowest levels for the last few years.

    Positive changes in crediting of the sector. Thus, in 2011 the agrarians brought 14.8 billion hryvnias of credits, 10.8 billion hryvnias are soft loans. In 2010 these indices made 10.1 billion hryvnias and 6.2 billion hryvnias accordingly. In 2009 the agrarian enterprises brought 6.8 billion hryvnias of credits, 2.6 billion hryvnias are soft loans. “The well-coordinated work with the National Bank and commercial banks is evident here”, - Nikolai Prisyazhnyuk explained the index growth.

    Tax revenues growth.In 2011 the agrarians increased assessments to the budget by 16% having paid more than 40 billion hryvnias of tax payments. This exceeds by 1.5 times the level of 2009.

    Agricultural production growth.In 2011 the agricultural goods production increased by 17.5%. This result has been achieved due to the crop production and record crop yield of 57 million tones.

    Record grain yield.In 2011 Ukraine gathered 57 million tons of grain that exceeds the last year records by 44%. The oil crops yield made 12 million tons.

    Sugar sector survived the crisis.“Due to the measures taken by the Government, the sugar production increased by 20% and made 2.3 million tones”, - the Minister pointed out. The internal need of Ukraine in sugar is 1.8 million tons, and in present the participants of the market complain of low prices (6 hryvnias/kilo at retail), and try to enter the overseas markets with their own products, but yet unsuccessfully.

    Cancellation of quotas and duties for grain export.“This has allowed the producers to work consistently, and has guaranteed the crops realization”, - the Ministry of Agricultural Policy explains.

    Agro-industrial complex export potential increase.Volumes of agricultural production export have increased by one third and made more than 13 billion dollars. Ukraine takes the second place in the world in barley and maize export, and the eighth - in wheat trade, and is a recognized leader in sunflower oil supplies that provide 50% of the world export.

    Reducing dependence on import.According to the Ministry of Agricultural Policy, meat and poultry by-products import has decreased by 65%, frozen fish - by 18%, fruits - by 50%.

    New markets for agricultural products.The Ministry of Agricultural Policy named India, Bangladesh, Saudi Arabia, the People’s Republic of China, North Africa among the new markets. “In the nearest future we are planning to reload the relations between Ukraine and countries of the European Union, import has increased significantly this way”, - the Minister maintained.

    Stabilization of milk production at agricultural enterprises.Milk production volumes have increased by 1.7% in comparison with 2010. The production continues falling on farms.

    Attraction of investments into cattle breeding.The construction of 26 new cattle-breeding complexes and reconstruction of another 95 have been started. The representatives of the Ministry of Agricultural Policy notice that the introduction of government granting system has contributed significantly to the investment attractiveness of this sector.

    Development of agricultural logistics and infrastructure.Building of wholesale markets for agricultural products, launch of the logistics center in Kakhovka.

    Minimization of seasonal price fluctuations for food products, first of all for bread and vegetables.According to Nikolai Prisyazhnyuk, due to construction of vegetable stores, start of wholesale markets and organization of travelling fairs they have managed to minimize the price fluctuations for food products. “Even cabbage, carrot, and bread have dropped in price”, - he noticed. Record low prices for vegetables were stipulated by the record crop yield (potatoes - 24 million tons, vegetables - 10 million tons), stable prices for bread - by the record grain yield and strict state regulation of the industry. According to “Ukrkhlebprom”, in 2011 the part of marginal enterprises in the baking industry of Ukraine increased by 40%, whilst in 2010 every third enterprise used to be marginal. According to the earlier information of “Delo” newspaper, the black market of bread in Ukraine is estimated at more than 60%.

    “One of the biggest achievements for me personally is that the agricultural sector has become stable and attractive in terms of economy. And also that after the administrative reform the team has worked consistently and strive to obtain common results”, - the Minister concluded.

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