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Ukrainian Grain & Oilseed Market

Ukrainian Grain&Oilseed Market

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Viktor Yushchenko urges Government to put grains market in order

15.05.2008 15:12 "Agro Perspectiva" (Kyiv) — As to Ukrainian President press-service, President Viktor Yushchenko has appealed to Government to settle some problematic issues of country Agrarian-Industrial Complex (in part., grains market).

As to press-service, President as well insists that Government should carry out regulations of Presidential Decree “About Some Measures on Grains Market Development.”

In his letter to Premier Yuliya Tymoshenko, President reminded that some regulations of this Decree still remained unfulfilled, while fulfillment of other regulations needed to be urgently accelerated, says press-service.

Thus, among unsettled issues President named population financial incomes indexation and revising of list of food articles, goods and services necessary to fix population subsistence minimum. As to President, there is no progress neither in grains industry entrepreneurs environment/investment climate improvement nor in agrarian markets State regulation forecastability.

“Insufficient financing of Agrarian Fund may lead to next in succession failure of State Food Reserve forming,” runs Presidential letter.

Letter says “…State support of agricultural producers isn’t efficient enough, what is proved by cattle number/milk output lowering and stockbreeding unprofitableness.” In part., as of this year Apr 1, Ukrainian cattle number was down 10.6% against last year Apr 1; this year Jan-Mar milk output declined by 3.2% as of last year Jan-Mar. As to preliminary data, last year stockbreeding unprofitableness lowered to – 13.3% (stockbreeding financial losses totaled well-nigh UAH1.4 milliard).

Rising of financing of 2008 State budget agricultural producers support programs by UAH500 mn, credits rates compensations program – by UAH333 mn and insurance premiums compensation expenses – by UAH150 mn is “not sufficient to liquidate negative tendencies and stagnation processes of domestic agriculture,” says President in his letter to Premier.

President Yushchenko also admitted 2008 first quarter budgetary financial allocations for Agrarian-Industrial Complex development programs (in part., credits cheapening, insurance, rural municipal services development, agricultural equipment cost compensation/production support, etc.) were insufficient.

“Serious miscalculations of State agricultural policy and domestic producers being insufficiently protected from unfair competition were, to a considerable extend, reasons for consumption prices growth,” emphasized President.

President said strengthening of market processes administrative interference (presently made by Government) can’t settle prices growth problem as it inevitably leads to competition slackening and regional markets monopolization deepening.

At same time, President admitted one of main measures to overcome inflation is to significantly rise domestic market agricultural producers offer.

Taking into account necessity to enhance competitiveness of domestic agrarian companies of all kinds ownership, evade Agrarian-Industrial Complex economic conditions worsening after Ukraine joins World Trade Organization and deepen European Community integration, President expects Government “will take urgent measures to settle abovementioned problems” and fulfill regulations of Presidential Decree “About Some Measures on Grains Market Development.”

Agro Perspectiva

< Apr meat sales up 25.5%, to 258,700 MT

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15.05.2008

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