Worsening of epizootic situation in the country entails risks of decline in production of the major meat kinds in Ukraine and direct losses of budget revenues at the level of UAH 2.8 billion.

In compliance with Annex 1 to the Decree of the Cabinet of Ministers of Ukraine No.413 dated 23 April 2008, 35 infectious and parasitic diseases to be covered by the state budget have been registered in Ukraine. One of the diseases that has been recently spread to dangerous condition is the African swine fever. Thus, as of 30 September 2016, 55 cases of this disease have been recorded in Ukraine. According to FAO forecast, in 2017 the number of cases will increase up to 117. Since the beginning of the year due to the African swine fever, 9.1 thousand pigs have been utilized leading to additional losses incurred by the farms at the level of UAH 29 million.

Based on the results of 2015, the amount of direct budget revenues from cattle breeding and swine breeding amounted to 1.4 billion only from payment of taxes on labour remuneration. Considering 50% VAT, the amount of revenues is UAH 2.8 billion. If worsening of the epizootic situation leads to decline in production of pork, beef and milk, national economy will suffer huge losses. These losses will be much more than the proceeds necessary to ensure stable epizootic situation.

‘The extent of financing necessary to stabilize the epizootic situation in the country is UAH 337 million. It constitutes only 11% of the direct budget revenues from the production of milk, beef and pork, and is insignificant comparing to the potential losses that the industry may incur’ - said Oleksandr Zhemoyda, Executive Director of the Association ‘Ukrainian Agribusiness Club’.

It should be recalled that the budget of Ukraine for 2017 stipulates allocation of UAH 56.8 million in order to maintain stable epizootic situation.