Agrain pays more export taxes than it receives state support

One of the shortcomings of the current system of subsidies for agrarians is the constant change in the formulas for their calculation. Such an opinion was expressed by the Head of the Livestock Branch of Agrain Agrogroup Yuri Gudz in the commentary for Latifundist.com.

According to him, despite the importance of supporting agricultural producers, this issue is not the main one in the industry. Yuri Gutz emphasizes that the main thing in livestock breeding is that the market rules are correct, and the market itself is stable.

“If we are talking specifically about specialized beef cattle breeding, then, on the one hand, we get a subsidy, and on the other hand, we pay an export duty which is 10% of the price. If we take the annual volume of livestock that is exported, we, roughly speaking, the amount of paid taxes exceeds the state support we receive,” Yuri Gutz noted.

According to the expert, the amount of subsidy should depend on the final product, that is, on its quantitative and qualitative indicators. The effect of this will be more tangible.

“What's the use of UAH 1.5 thou. per year for a cow? And who knows if this cow has given more milk or more calves? And you need to count on the subsidy, based on the amount of milk, or bind it to the quality. If it concerns bulls, then to the live weight of realization. That is, it must be progressive,” the manager explained.

Yuri Gudz stresses that the method and the principle of the state subsidy calculation must be stable and understandable for all market participants.

"Almost every year, formulas, approaches, methods change. About 10 years ago there was a subsidy for the kilogram sold. Then for a head of cattle. Then the VAT was returned. Then they did not return anything. Then again for the head. That is every year there is something new. Let us work for a period of 3-5 years and see. What we have in the result is changing rules every year," Yuri Gutz added.

Previously it was reported that Agroprime Holding, a branch of Agrain Agrogroup, considered the increase of its farmland bank.