The “white banks” should not shallow
The producers of milk want to return the state subsidy for the milk givenThe evidence of this is the result of the poll held by the Social Monitoring Center and the Yaremenko Ukrainian Institute for Social Studies. The study had a form of telephone survey. A total of 140 managers of large and small diary factories all over Ukraine have been interrogated.
The discussion about the milk subsidies arose after the procedure of reimbursement was changed. Before 2011 the producers were supported by the state subsidies per liter of milk given. However, this year the procedure changed and the producers have to transit the VAT for the produce sold to a special fund of the state budget. This fund will be used to reimburse the producers their expenses on buying milking machines, building farms and mash plants.
According to the director of the Yaremenko Institute for Social Studies Tetiana Bondar, 61 percent of respondents answered “yes” when asked if they have taken any steps to augment the production of milk this year.
When asked if they are satisfied with the current situation with milk subsidies repayment by the state, 81 percent of interrogated producers answered “no,” director of the Social Monitoring Center Dmytro Dmytruk says. The number of those who support the current mechanism and of those who found it difficult to reply was equal – 9 percent.
The major part of respondents (91 percent) answered “no” when asked if their factories have received the state subsidies for milk production this year.
According to Dmytruk, the research has also demonstrated that 68 percent of respondents would like the state to resume the cancelled model of milk subsidies (per liter of the milk given), 19 percent answered “rather yes,” 7 percent answered “rather no,” 5 percent found it difficult to answer, and 1 percent abstained from commentaries.
The sociologists say that the sampling of the study was not large so the results received are far from being exact. However, they opine that the answers of 91 and 81 percent of respondents should be considered.
Director of the Livestock Department at the Ministry of Agrarian Policy and Food of Ukraine Andrii Hetria thinks that the milk subsidies should not be resumed since they are not efficient. He gave an example to prove it. Over the period of 2001-10 the state spent 10 billion hryvnias for the milk subsidies, however, the production of milk augmented only by 400,000 tons and the population of milkers fell. Another point is that milk production is highly profitable. That is why he says that it is unclear why the old form of subsidies should be resumed.
However, according to director of the Financial Department at the Ministry of Agrarian Policy and Food Bagrad Akhidzhanov, the new mechanism of milk subsidies was pushed by the unequal subsidies the people received in different regions of Ukraine. Besides, the subsidies per liter of milk prevented the diary factories from developing, he says. The players of the market and experts have their own opinion.
According to the Chairman of the Board of “The Yahotyn Creamery” Oleksandr Sirenko, today 70 to 82 percent of milk comes from individuals. If they are left without financial incentives they will reduce the population of milkers and the deficit of milk will grow. He says that even now the production of milk is decreasing by 4 to 5 percent every year.
The Hero of Ukraine, Director General of the company “Start” Vasyl Petryniuk calls upon to think about supporting the individuals having one or two cows. These people have the most questions about non-payment of the subsidies since the peasants survive by selling milk. The farmer does not want any subsidies for himself. “I have refused any subsidies long ago… My farm has not received any subsidies yet but the manager and the accountant are followed by prosecutors, tax agents, workers of KRU [Audit Office. – Ed.], and SBU [Security Service of Ukraine. – Ed.],” he says. The entrepreneur specifies that the instructions and rules for receiving the subsidies are so complicated that it is just impossible to avoid mistakes.
MP Kateryna Vashchuk also supports the resumption of the previous model. She has recently introduced a bill No. 9345 that suggests returning to the previous system of the state support. The time will show whether the deputies adopt it. Meanwhile, the representatives of the Ministry of Agrarian Policy and Food informed that the special budget fund has received 500 million hryvnias, however, this money has not been distributed yet.