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The Cabinet has proposed for the Verkhovna Rada to allocate 900 million UAH to support the livestock industry in 2014, according to the draft law "On State Budget of Ukraine 2014," registered as bill 3000 with the Parliament on Dec. 18, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine reports.
Based on the explanatory note for the document, the special fund of the state budget expects to receive about 900 million UAH in 2014 due to the Value Added Tax (VAT) paid by processing plants. These funds will be used as special budget subsidies towards maintenance and preservation of young animals, as well as for the cattle grown and sold for slaughter.
It is also planned to extend the program of partial reimbursement for construction of livestock farms, purchase of breeding stock and milking machines.
Several government programs to support livestock have been implemented in Ukraine for the past several years. The programs helped Ukrainian industry to start recovering from the crisis last year, the production figures were positive for the first time for 20 years. This trend is true of this year as well.
More than 160 million UAH have already been paid to the regions through these state programs since early 2013 which greatly contributed to industry growth. By Dec. 1, 2013, the cattle count in Ukraine totaled 4.97 million head, up 2.3% year-on-year. The level of profitability in the agricultural sector went up 1.4% whereas it was 1.3% in the first half of 2012.