Decreasing global and domestic prices and related to it multimillion losses, significant logistical expenses and expensive resource providing with almost absent State support creates catastrophically adverse conditions for agribusiness in Ukraine. At the same time, the draft budget for 2014 does not again includes almost any assistance from the State. This was stressed today during the press conference by the representatives of agricultural associations: the Association "Ukrainian Agribusiness Club", Ukrainian Agrarian Confederation, the Union of Poultry Producers of Ukraine, and the Association of Farmers and Private Landowners of Ukraine.

Although farmers have received a record harvest in 2013, but the falling the prices on the international and Ukrainian markets caused those who provide a quarter of foreign currency revenues to the State budget, counting the exorbitant losses. So, as at January 10, 2014 the average purchase price for corn under EXW  was 1185,3 UAH/tonne, that was 38.75% (749,7 USD/ton) less than at the same date last year. Third class wheat costed 1752,7 per ton, that was by 16.7% (350,6 USD/t) less, feed wheat – 1619,2 UAH/ton – by 17.7% less (347,4 UAH/tonne), barley – by 23.0% (469,2 USD/ton). So the profitability from growing many crops is approaching to zero, and producers of corn worked even with losses about 7% (loss per hectare – 469,2 UAH).

"Wherein, the cost of fertilizers has increased by 25% during the last month, that puts in jeopardy the quality and timely doing of the next sowing campaign”, - said the First Vice President of the Association of Farmers and Private Landowners of Ukraine Mykola Strizhak.

The measures aimed at the reduction of logistics costs, brought no tangible results. Should be recalled that in Ukraine they are 500-600 UAH when in developed countries logistics costs do not make up more than 20-30 dollars per ton.

Even under such difficult conditions for farmers, the budget for next year almost does not provide support to agricultural producers.

"The draft budget for 2014 foresees only 100 million UAH  from a special fund for crop production to garden and treat young plants, vineyards and barriers, while according to the legislation it should be allocated 1.2-1.3 billion UAH on these needs. The financial support for agroindustrial complex was increased on 113,7% up to 207 million UAH, however, this sum is insufficient even for loan repayments for agribusinesses for previous years. Slightly enlarged the State support for livestock industry – up to 900 million UAH (through a special fund), i.e., by 38.5% ",-said theChairman of the Board of Directors of the Association "Union of Poultry Producers of Ukraine” Oleksandr Bakumenko.

"Unfortunately, we can say that the draft budget for 2014 is not such that would give preconditions to talk about the State’s wish to maintain positive trends in agriculture. Almost all the areas as we see have reducing in funding", - added the President of Ukrainian Agrarian Confederation Leonid Kozachenko.

By the way, in Ukraine only 1.32% of the gross value added industry in 2012 were subsidies from the budget. In Russia, this figure equaled 13.47%, United States-7,12%, in the EU – 19,04%. These countries are the most important competitors for Ukraine on the world grain market. Thanks to the subsidies provided in developed countries their agricultural producers remain with profits even under current low prices for grains. So the domestic farmers are not capable to compete with their counterparts. As experts assert, substantially neutralize the loss of farmers could VAT refunding when exporting grain. However, the Government proposes to extend provisions of the Tax codex, according to which the exporters of grain cannot pretend for VAT refunding.

Farmers expected that since January 1, 2014, as has been anticipated, the norm for VAT refunding when exporting grain will operate. Due to this the purchasing prices directly from the farmers could grow by 10%-12%, that would greatly help to agricultural producers to “survive” in the difficult conditions prevailing.

"Now farmers are thinking whether it makes sense to engage in agriculture in the future, when investing considerable material, labor and moral resources, in result they find themselves with empty wallets. So many of them already plan to cut square, to save on resource materials that would adversely affect the quality and quantity of future harvest", - said the President of the Association "Ukrainian Agribusiness Club" Alex Lissitsa.