News
24.04.2013
Agriculture ministry opposes introduction of minimum prices of milk
Agricultural Policy and Food Minister of Ukraine Mykola Prysiazhniuk has said that it would be better not to introduce minimum prices of milk - a measure proposed by some lawmakers.
"I support economic drivers dictating the price of milk - that is demand for milk. As for an administrative driver, a minimum price, it could be inefficient," he said at a press conference as a part of the Ukrainian Milk Form held in Kyiv on Tuesday.
The minister plans to ask the associations that unite milk processors not to create a monopoly in certain raw milk zones and thus dictate prices of milk. He said that for many private households milk production is one a major source of income.
Earlier lawmakers Andriy Derkach and Artem Pshonka (both from the Regions Party faction) proposed to stipulate a requirement on the state regulation of purchase prices of milk in the milk and diary products in the law on milk and dairy products. The cabinet of ministers will have the right to set minimum prices of raw milk for certain period of the calendar year.
In August 2012, the Cabinet of Ministers set a minimum price of second class milk with basis fat content bought from households at UAH 2.20 per kilogram (value added tax not included), which was in effect until the end of 2012.
According to the State Statistics Service, milk production in the first quarter of 2013 in the country came to almost 2.1 million tonnes, which is 1.2% up year-over-year.
