Public professional organizations of agricultural sector, i.e. Association ‘Ukrainian Agribusiness Club’, All-Ukrainian Agrarian Council, Union of Poultry Farmers of Ukraine, Meat Production Industrial Corporation and Association of Pig Producers of Ukraine wrote an open letter to Volodymyr Hroisman, the Prime Minister of Ukraine, requesting to increase financing for anti-epizootic measures.

In compliance with the Decree of the Cabinet of Ministers of Ukraine No.413 ‘On approval of the use of proceeds provided by the state budget for disease control measures and the list of services of veterinary medicine specialists carrying out veterinary practices for implementation of mandatory or necessary disease control measures as well as amount of their payment’ dated 23 April 2008, 35 infectious and parasitic diseases to be covered by the state budget have been registered in Ukraine.

Within the last two years in Ukraine the number of incidents of the African swine fever has increased and the risk of aphthous fever, nodular dermatitis of cattle, rabies, leucosis of cattle, leptospirosis, salmonellosis has risen as well. Epizootic situation is also worsening in neighboring countries. In particular, several outbreaks of ASF are being weekly recorded in the European continent.

In Ukraine since the beginning of the year 79 cases of the African swine fever has been registered. According to FAO forecast, in 2017 the number of cases will increase up to 117, while one in four disease incident is going to take place in the farm with low biosafety level. From 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.

The extent of financing necessary to implement mandatory anti-epizootic measures in 2017 is UAH 337,486 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.

Nonetheless, the budget for 2017 under the program budget expenditures classification No.2809020 ‘Anti-epizootic measures and participation in International Office of Epizootics’ and the code of economic classification of expenses No.2220 ‘Medicines and dressing materials’ stipulates the limit amount of UAH 50.44 million constituting only 14.9% of the actual need.

The above-mentioned letter emphasizes that the potential losses from deterioration of the epizootic situation are almost 10 times higher than expenses to be used for its stabilization. Preventive measures and/or rapid vaccination are much cheaper than a reaction to wholescale distribution of the disease. If the funds are not allocated, the actual financing needs can increase by 4-5 times in the upcoming 2017.

Underestimating risks of epizootic condition will affect not only the condition of livestock industry, but also for the majority of households will lose their cattle and, therewith, means of living. Biological safety as a component of national safety may be under the threat.

Worsening of epizootic situation in the country entails risks of reducing production of the major meat types in Ukraine and direct losses of the state revenues at level of UAH 2.8 billion. It will also lead to the risk of contraction of the animal products export. Basing on the results of 2015, Ukrainian pork and cattle producers supplied products to the amount of USD 341 million to the foreign market, within three quarters of 2016 the amount reaches USD 188 million.

This year, Romania, Kazakhstan, Belarus, Moldova and Armenia have suspended or banned pork import from the certain regions of Ukraine in view of the African swine fever. Reduction of livestock products to be supplied abroad would increase import and worsen foreign exchange balance, and can return Ukraine to the status of raw-material appendage. The consequences of epizootic situation deterioration are observed on the crop products as well. In 2015, Belarus banned import of feed wheat and maize from the regions where the ASF outbreaks were determined. This year, the export of meal has been significantly impeded to this country.

The letter places an emphasis on a necessity to have the draft state budget of Ukraine for 2017 finalized by the second reading and facilitate addressing the issue about increasing of the budget allocations to the State Foods and Consumer Service in order to stabilize epizootic situation in the country. ‘As of today the draft state budget for 2017 being in the form that has been passed by Verkhovna Rada of Ukraine in the first reading will provoke deterioration in the agricultural sector, in particular, the epizootic situation’, stated in the letter.

Association

‘Ukrainian Agribusiness Club’

146 Zhylianska Str., 3^rd floor

01032 Kyiv, Ukraine 

Tel/Fax: +380 44 236 20 97, 79

goshovska@ucab.ua

www.ucab.ua

Zoriana Goshovska

Association ‘Ukrainian Agribusiness Club’ (UCAB), , was founded in 2007 to protect economic and professional interests of the agribusiness players of Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the agribusiness leaders, enhancing their performance efficiency as well as building dialogue with the government authorities. UCAB greatly facilitates establishing and maintaining international business relations for the Ukrainian producers. The Association includes the largest producers and processors of agricultural products in Ukraine.