Uman NUH | today: 03/31/2023

State support as a tool for the stabilization of the development of livestock in Ukraine

Author(s) А. А. ОСІПОВА, , ,
Category Economics
year 2020 issue Issue number 96. Part 2
pages 84-103 index UDK 338.43.0
DOI 10.31395/2415-8240-2020-96-2-84-103 (Link)
Abstract Livestock is an important component of the agricultural industry of each country. Since it plays an important role in the food security of the country, the state should pay attention to it at a high level. Within the context of the modern world, mechanisms and methods have been developed for the implementation of state support for animal husbandry. Mostly they are based on the characteristics and needs of each state. But the use of generalized best practice in this area, as it is mostly practiced in Ukraine, does not bring the expected results, and therefore this area of activity is undergoing a severe decline in development and does not take advantage of the interest of potential investors and manufacturers. The abovementioned is evidenced by the devastating decline in livestock for the period from 1991 to 2019. The number of cattle decreased by 21,9 million, pigs – by 13,9 million, sheep and goats – by 7,7 million, poultry – by 43,4 million of livestock population. Consumption of livestock products by the population of Ukraine at the end of 2018 was mainly on the verge of the minimum required consumption rates: meat and meat products — 4,9 with a minimum of 4,3 kg on average per 1 person per month (rational rate – 6,7); milk and dairy products — 19,1 kg (minimum 28,4, rational norm — 31,7) on average per 1 person per month; eggs — 19 pieces for 1 person (rational norm of 24 pieces); fish and fish products — 1,4 kg (rational norm 1,7 kg). At the same time, livestock production in 2019 amounted to 2,6 % of total exports, and crop production to 25,8 %. Thus, we get a clearly formed shift of balance in the development of agricultural sectors, which, of course, is negatively reflected in the economic development of the country. And a way out of the situation is foreseen in the change of priorities and mechanisms for the implementation of state support for the livestock industry. Nowadays, state support programs in the industry under study foresee partial compensation of certain financial expenses associated with production activities, special budget subsidies for individuals and legal entities, partial reimbursement of the cost of animals, as well as the cost of construction, repairs and reconstruction of the premises necessary for the activity. However, such methods in practical terms turned out to be rather ineffective, since access to funds is mainly provided by large enterprises. Based on the current situation, it is necessary to review the mechanisms for providing state support which will be of a combined nature and also change priorities. In particular, more attention should be paid to individual, family and farming enterprises, for which the direct financial support will be more convenient. Separately, it is worth revising the taxation of the livestock sector of the economy, as well as encouraging the integration of small farms into cooperatives.
Key words agriculture, animal husbandry, financial support for agriculture, state support, state support programs for livestock
Download    (Total: 166)