News
29.11.2012
Agriproducers defined main risks for 2013
According to a survey conducted by the Association "Ukrainian Agribusiness Club" (UCAB), more than 70 percent of managers and owners of Ukrainian agricultural companies are concerned about the outlook for their work in 2013. It was mentioned by the President of UCAB Alex Lissitsa, commenting on the results of the study, conducted on the eve of the Conference "Doing Agribusiness in Ukraine: Prospects for 2013".
Among the factors that may cause the deterioration of working conditions, representatives of the agricultural sector noted the following ones:
- The lack of a clear understanding of the prospects of the land market (and possible parameters of the market) and working conditions in the land market, in particular regarding the registration of lease agreements, land arrangement projects, calculation of normative monetary value of land, etc.;
- The lack of available funding regarding the availability of financial resources, and the cost of credit resources. Average annual interest rates for farmers amount to 24-26% in local currency. Other forms of capital, including capital investment on the stock exchanges are almost inaccessible;
- Unclear situation with prospects of taxation of AIC in 2013 in connection with existing proposals for changes in tax incentives for farmers due to the fixed agricultural tax and value added tax.
The next block of problems plaguing agribusiness, according to A. Lissitsa, are the following issues:
- Rising prices for basic agricultural inputs in conjunction with the control of prices for many kinds of products produced by farmers and processors;
- A possible shortage of high quality seeds in 2013;
- The lack of skilled personnel in the country that is becoming more evident. To find a qualified agronomist to work in rural areas takes almost 1 year, which is twice more than it was 5 years ago;
- Problems with the availability of freight cars during the massive shipments of grain, oilseed meals and other agricultural products.
Among the positive factors the representatives of agribusiness named the following ones:
- Relatively high prices for products produced, including grains and oil-bearing crops, although one cannot say this with regards to buckwheat or sugar;
- Relatively good condition of winter crops for harvest of 2013;
- The adoption by the Verkhovna Rada of Ukraine of the law on extension of the moratorium on sale of agricultural land, because more than 70% of farmers and about the same proportion of farms consistently opposed the introduction of agricultural land market, at least until the time when a workable system of cadastre and registration of rights to land are perfected.
These are the issues the IV International Conference "Doing Agribusiness in Ukraine: Prospects for 2013" will be devoted to, on December 6, 2012 in Fairmont Grand Hotel.
Among the speakers of the Conference there will be the Chairman of the Committee on Agrarian Policy and Land Relations Hryhoriy Kaletnik, the President of UCAB Alex Lissitsa, director of the Agricultural Department of Rabo Bank Ruud Hyurne, the Head of Assets Acquisition Department of JSC "Razgulay" Group (Russia) Vitaly Bochkov and others. Find out more at www.agrievent.com.ua.
Association "Ukrainian Agribusiness Club"
Velyka Zhytomyrska str., 20 А, office 53, Kyiv, 01001
Phone: +380 44 201-4950
Fax: +380 44 201-4951
099 272 59 30
Tetiana Kotyk
www.agribusiness.kiev.ua
The Association "Ukrainian Agribusiness Club" (UCAB) www.agribusiness.kiev.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.
