Ukrainian Grain Association to initiate extra measures for country grain market saving

Ukrainian Grain Association stated that the new Tax Codex coming into force, and also imposition of the mechanism for grain export quotas selling at the auctions will cause damages for the domestic agricultural commodities producers at the level of 350 USD for each cultivated ha of agricultural land. Due to the fact, the Ukrainian Grain Association initiates the extraordinary measures, in order to escape the negative scenario of the situation development on the country grain market and irretrievable damages, stated announcements of the Ukrainian Grains Association signed by Vladimir Klimenko, the President of the Association.

According to the Ukrainian Grain Association, the agrarians losses will be provoked by three reasons. In particular, the VAT refund cancellation for grain exporters (in accordance with the new Tax Codex) will cause damages for grain producers at the level of 400 UAH for each tonne.

Besides, the agrarians will suffer damages at the level of about 250 UAH for each tonne of grains, due to the planned grain export quotas selling at the auctions.

The different varieties of additional payments during export trading will cause the losses at the level of about 120 UAH for each grains tonne.

Thus, according to calculations of the Ukrainian Grain Association, the final losses of agrarians will total about 100 USD for every tonne of grains or about 350 UAH for each ha of cultivated land areas.

The scenario may cause grain production damages in Ukraine, food safety challenge of the country and the foreign markets lose, noted the Ukrainian Grain Association in its announcement. Meanwhile, the Association reminds that the European Union dotations for 1 ha of treated land total the level of about 500 EUR.

Due to the fact, the Ukrainian Grain Association brings up the range of the principal issues for the agricultural complex for which it would like to get the answers, in particular, who will be responsible for ruination of peasants, due to the changes in the VAT taxation?

Besides, the Ukrainian Grain Association brings up the issue about: why representatives of the non-governmental organizations were excluded from the composition of the commission for grain export quotas distribution of the Ministry of Agrarian Policy and Food of Ukraine?

The Ukrainian Grain Association is also wondered: in accordance with what order the quotas were distributed, if the Agrarian Department did not confirm grain availability at five world known companies, as a result they were not able to introduce the required documents to the Ministry of Economy, and did not receive allowance for exports of any tonne of grains? According to the conjunction, these five enterprises are the largest borrowers of the European Bank of Reconstruction and Development.

There are other issues of the Association: why the Decree about grain quotas volumes increase and about their validity terms prolongation still was not officially introduced? Why maize export limitations were not canceled, though maize production volumes totaled the highest level for all the years of Ukrainian independence.

The Ukrainian Grain Association appealed to the agrarian unions of the country and the Cabinet of Ministers of Ukraine to realize the extra meeting regarding the situation on the grain market for approved decisions making, in order to escape the negative scenario.

UGA predicts heavy losses of farmers due to tax code

The entry into force of the tax code, as well as the introduction of a mechanism of sale of quotas on grain exports at auctions will lead to losses of domestic agricultural producers in the amount of USD 350 for each hectare of land being cultivated by them, the Ukrainian Grain Association (UGA) said in a statement signed by its president, Volodymyr Klymenko.

According to UGA, the losses of farmers will be triggered by three reasons. In particular, the abolition of VAT refunds to grain exporters (in accordance with the new tax code) will lead to losses of grain producers of up to 400 UAH/ton (USD 1 - UAH 7.96).

In addition, the farmers will suffer another UAH 250 per ton of grain due to the planned introduction of the mechanism of sale of quotas on grain exports at the auction.

Various types of additional payments in export operations will lead to losses of another some UAH 120 per ton of grain.

Thus, UGA says, the resulting losses of farmers will total about USD 100 per ton or USD 350 per hectare of cultivated land.

In this regard, the Ukrainian Grain Association has called on the agricultural associations of the country and the Cabinet of Ministers to hold an extraordinary meeting on the situation in the grain market for making agreed solutions to avoid the development of a negative scenario.

The Verkhovna Rada adopted the new tax code, as amended by President Viktor Yanukovych, on December 2. The document will come into force on January 1, 2011.

Ukraine. 93% of winter crops in good and satisfactory condition

Winter crops in Ukraine were in good condition on an area of 4.5 million hectares as of December 16, 2010, which was 55.3% of the total area under crops, according to the Ukrainian Agriculture and Food Ministry. Crops on an area of 3.11 million hectares were in satisfactory condition, or 38.1% of the total area.

Weak sprouts were reported on an area of 543,000 hectares, or 6.6% of the total area.

Winter wheat was in good condition on 3.74 million hectares (56.5%), satisfactory condition on 2.46 million hectares (37.1%), and weak sprouts were recorded on an area of 418,000 hectares (6.3%).

Winter barley was in good condition on 540,000 hectares (44.4%), satisfactory condition on 560,000 hectares (45.5%), and weak sprouts were reported on an area of 123,000 hectares (10%).

Winter rye was in good and satisfactory condition on 218,000 hectares (70%) and 83,600 hectares (27%) respectively.

As of December 16, winter rapeseed was in good condition on 53.5% of the area, satisfactory condition on 35.8% of the area, and weak sprouts were reported on 10.7% of the area.