World Grain - October 2016 - 70

FEATURE: UKRAINE AIMING TO DOUBLE GRAIN OUTPUT

"Ukraine got significant benefits after establishing
a free trade zone regime with the E.U., so in
2016 European countries are the largest
purchasers of our grain."
-Eugene Goncharenko, Ukraine Agricultural Ministry

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deal with this situation, but we really
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EXPORTS DRIVE UP DEMAND
At the same time, the Ukraine
Agricultural Ministry forecasts suggest that the share of export supplies of
to 100% or even more. For other key future spending on modernization. grain producers should rise to 70% in
resources, growth is expected to be This decision caused several protests 2020 from 50% in 2015.
within 60%, the study found.
in which hundreds of farmers gathered
2I¿FLDOVH[SODLQHGWKDWWKLVZLOOUHIn addition, the Ukraine govern- outside the Parliament. The increase quire the opening of new markets for
ment, beginning in January 2016, of tax payments to the general budget Ukraine grain as well as upgrading of
cancelled advantages on VAT pay- amounted to 5% to 15%, according to relevant infrastructure.
ments for grain producers, which had PDUNHW SDUWLFLSDQWV DQG VLJQL¿FDQWO\
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been available since 1998. Previously, XQGHUPLQHG WKH SUR¿WDELOLW\ RI PDQ\ after establishing a free trade zone
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regime with the E.U., so in 2016
of 0.45% of the value of land they op"The transition from 100% non- European countries are the largest
erated. Payment of this tax allowed taxable income on VAT to 15% is SXUFKDVHUV RI RXU JUDLQ´ H[SODLQHG
them to avoid VAT payments.
D VWURQJ KLW RQ SUR¿WDELOLW\´ -RKQ Eugene Goncharenko, spokesperson
However, the system has been Shmorhun, head of agricultural hold- for the Agricultural Ministry. "At
changed, so farmers have to transfer ing AgroGeneration, told World the same time, we have very diversi85% of VAT to budget and another Grain. "But there is also another ques- ¿HG JUDLQ H[SRUWV VLQFH WKH ODUJHVW
15% to their own special accounts for tion, as instead of one tax account purchasers of our wheat this year are
Thailand, Egypt and Indonesia, while
most barley is delivered to Saudi
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for the further increase of wheat exports to China, the Middle East, and,
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Goncharenko said the rise in exports
should be coupled with the modernization of infrastructure; there are already some projects under way in this
regard. Ukrlandfarming is planning
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Vladislav Vortonikov is a correspondent from
Voronezh, Russia. He may be reached at
Vorotnikov.vlsl@gmail.com.
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