A third of Ukrainian poultry farms under threat
The cancellation of the tax benefits for agricultural producers in Ukraine may result in 30-40% of the country’s poultry farms to cease operations, claims Alexander Bakumenko, chairman of the Union of Poultry Farmers of Ukraine.
Removing the tax benefits will seriously harm mostly small and medium sized poultry producers, said Bakumenko. He also pointed out that the cost of production both broilers and eggs will constantly growing. The government intends to take this measure during 2013, as according to recent estimations agricultural tax benefits cost the state budget about UAH 18bn (US$2.3bn) annually.
The country’s ten largest agrarian associations have formally requested the government to not cancel the tax benefits.
“I think they will hear us because we have stated our position clearly and convincingly. Moreover, these associations account for 98% of the agricultural market of Ukraine. They will be affected with such a step which may lead to a collapse of the agriculture sector. Large, medium and small-scale pig and poultry enterprises simply will have to stop their operations, all with negative consequences,” added Bakumenko.
As a result of the cancellation of the tax benefits, experts predict a significant rise in imports and the fall of the domestic production of poultry already in the coming years.
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