Ukraine: Ukraine Introduced New Agricultural Support System in 2017

  |   Attaché Report (GAIN)

Upon introduction of a new agricultural support system in early 2017, Ukraine eliminated budget revenue support programs based on Value Added Tax (VAT) subsidies. A new direct budget transfer system significantly reduced support for livestock and pig farmers, while support for poultry producers will likely decline at a lesser extent. Among animal producers, dairy, beef and pork producers are most likely to be negatively affected due to smaller expected margins. Support for bulk crops (grains and oilseeds) was cancelled; however, these losses were partially offset by more efficient export VAT reimbursement for these crops. Based on the elimination of subsidies for bulk crops, margins are expected to be lower which could result in slower growth of that sector in the longer term. The new system provides lower support to agricultural producers overall; however, it is difficult to predict specific changes in production levels across sectors. 

Ukraine: Ukraine Introduced New Agricultural Support System in 2017

Related Reports

Attaché Report (GAIN)

Taiwan: 2023 US Agricultural Exports to Taiwan Summary

In 2023, the total value of U.S. agricultural and related products exported to Taiwan was $3.7 billion, a decrease of 15 percent compared to the previous year.
Attaché Report (GAIN)

Thailand: Rice Price - Weekly

Rice export prices further decreased 1-2 percent due to the weakening of the Thai baht.
Attaché Report (GAIN)

Ukraine: Poultry and Products Semi-annual

Ukraine’s chicken meat production continued to recover in 2023, driven by low feed costs and stable energy supplies and macroeconomic environment. Facing lower world market poultry prices in the first three quarters of 2023, Ukrainian poultry producers concentrated on import replacement on the domestic market and exports to the European Union, under the tariff- and quota-free access granted to Ukraine in solidarity after Russia’s full-scale invasion.