News
16.07.2014
Agricultural producers promise “bread Maidan” in August
If the state fails to support agricultural producers and the fall of grain prices occurs, agricultural producers will go to the “bread Maidan.”
Chairman of the Union of Agricultural Servicing Cooperatives of Ukraine Ivan Tomych said at the round table in Kyiv, a Ukrinform correspondent reports.
"I address the authorities today. If there is the fall of grain prices in July-August, I say on behalf of the association - there will be the bread Maidan,” the farmer said.
According to him, prices for 5th class milling wheat should be at the level of UAH 2.500 per tonne and then the farmers will survive and provide the state with the food next year too.”
According to analyst of the Ukrainian Agrarian Association Marian Zablotsky, a price at which the State Food and Grain Corporation will sell grain to the Chinese People's Republic (UAH 2,000/tonne - Ed.) is “not profitable.” “The State Food and Grain Corporation operates at a loss now, which is proved by the millions of debts over the previous years,” the expert added.
To remind, currently, the average price for the 3rd class wheat is UAH 2,276/tonne and for fodder wheat - UAH 2,146/tonne.
Zablotsky also specified that “profitability of grain producers last year was about 2% and another 10% of profits were received through tax remissions. The expert said that this state support “should be preserved, although the EU stands for the abolition of tax privileges.”
The world fall of grain prices, which according to the UN Food and Agricultural Organization, will continue for the nearest two years and, respectively, will press on Ukraine, requires the state compensation and support, since agricultural producers, and they are about 3,500 persons in Ukraine, will simply stop production.
“A risk of the grain Maidan really exists if the government of Ukraine is not able to preserve the tax exemption for the agricultural producer,” Zablotsky summed up.