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Current status for investments in husbandry in Ukraine

published 03 December 2021 18:27

On investments in the animal husbandry

According to data collected by the State Statistics Service of Ukraine the volume of capital investments attracted in the first half of 2021 in the spheres of agriculture, forestry and fisheries amounted to 19,4 billion UAH out of which 3,2 billion UAH (16,4 % of the total) in animal husbandry.

Referencein 2020 the volume of capital investments attracted in agriculture, forestry and fisheries was 50, 7 billion UAH out of which 8,3 billion UAH in animal husbandry (16,4 % of the total volume). In comparison with a previous year the volume of investments attracted in animal husbandry dropped by 20%. 

According to the information from regions for ІІІ quarters of 2021 the animal husbandry domain got 31 livestock (of total cost 698,95 million UAH) facilities out of which 16 in stockbreeding (with a capacity of 4,6 thousand cattle including 3,7 thousand cows), 9 in swine breeding
(with a capacity of 68, 1 thousand pigs), 3 in poultry breeding (with a capacity of 1057,0 thousand poultries), 2 in goat breeding (with a capacity of 2,4 thousand goats) etc.

In the year of 2022 construction and reconstruction of 27 animal husbandry facilities are planned (of total cost 726,4 million UAH) out of which 15 in stockbreeding (with a capacity of 8,18 thousand cattle including 7,23 cows), 6 in swine breeding (with a capacity of 47,0 thousand pigs), 2 in poultry (with a capacity of 1,14 million poultries) etc.

Reference73 livestock facilities were put into operation in 2020 (of total cost 2,3 billion UAH out of which 41 in stockbreeding (with a capacity of 18,9 thousand cattle), 14 in swine breeding (with a capacity of 57,9 pigs), 12 in poultry breeding (with capacity 1,4 million poultries) etc.

To accelerate investments in the animal husbandry the budget program “Financial Support for Agricultural Producers” provides for support in the areas (but not limited to) of: 

- state support for the development of animal husbandry and processing of agricultural products.

Reference: agribusiness entities are provided with partial reimbursement of the value of facilities  in the amount of up to 50 % of the value (excluding value added tax), and agricultural cooperatives in the amount of up to 70 % of the value (excluding value added tax) including the cost of equipment, finished  and/or reconstructed facilities (put into operation in November – December of a previous year and in January – October this year) for keeping (growing and breeding) livestock, poultries and aquaculture facilities (fisheries husbandry businesses), milking parlors, enterprises for processing agricultural products (in particular for the production of meat, fish and dairy products) and/or by-products of animal origin, belonging to categories II and III.

- financial support of measures in the agro-industrial complex by reducing the cost of loans

Reference: subjects to compensations are interest rates on the below categories:

short-term loans to cover production costs; 

medium and long-term loans for purchasing of fixed assets of agricultural production, covering of costs for the construction and reconstruction of agricultural production facilities, as well as for the construction and reconstruction of other production facilities.

Compensation is provided to borrowers on a monthly basis for actually accrued and paid interest at the rate of 1,5 of the discount rate of the National Bank, effective on the date of accrual of interest, but not higher than the amounts provided by loan agreements reduced by 5 percentage points.

As of today, almost 902 million UAH has been allocated to compensate agribusiness entities for the interest actually paid for the use of loans.

More than 3.5 thousand borrowers who applied to authorized banks received the funds.
The total amount of loans attracted by enterprises is over 250.2 billion UAH, out of which soft loans (subject to compensation) - 36.7 billion UAH, including:

a) by types of loans:

- short-term - 15.4 billion UAH (42%);

- medium-term - 13.2 billion UAH (36%);

- long-term - 8.1 billion UAH (22%);

b) by type of activity of borrowers:

- livestock industry - 6.1 billion UAH (16.5%);

- other industries - 30.6 billion UAH (83.5%).

The average interest rates of banks, at which agribusiness entities attracted loans were 14-16% per annum.

 

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