Agricultural policy in Ukraine focuses on supporting the development of small and medium-sized businesses in the countryside, including farming and agricultural cooperation. So, over the past year, the number of existing agricultural servicing cooperatives grew by 125 units, and today their amount is 735.
"The association of producers in cooperatives is an effective form of doing business since expenditures optimization opens up a number of prospects for expanding production, and as a result, profit growth. Since last year, in Ukraine a state program to reimburse cooperatives 70% of the cost of purchased equipment has been in effect, which was used by 6 agricultural servicing cooperatives, with 2 of which newly established", commented Deputy Minister of Agrarian Policy and Food of Ukraine Victor Sheremeta.
Thus, state support was provided to dairy, and fruit and berry cooperatives for the purchase of equipment for the storage and processing of agricultural products to the tune of UAH 8.5 million.
"Certainly, the number of cooperatives that benefited from state support is rather small. Therefore, I urge agrarians to follow an example of colleagues who have proved their effectiveness for their business. Business is always a risk, but the purpose of state assistance is to minimize this risk", said Victor Sheremeta.
He added that the Ministry of Agrarian Policy engages in an active dialogue with representatives of agrarian associations to find joint solutions for improving the principles of state assistance. Thus, for agricultural servicing cooperatives, the areas of activity in which they could get government support by adding vegetable cooperatives, harvesting and processing of wild berries, mushrooms and plants, and honey products were expanded. In addition, 70% of the cost is compensated not only for equipment of Ukrainian origin but also for the transportation of agricultural products.
According to the Deputy Minister, cooperatives that use state support, update the logistical base of production. With skillful management, this will ensure an increase in industrial output of value-added products.
"Value-added products, in turn, saturate the domestic market with quality food and expand the export potential of the country. In addition, the establishment of new and enlargement of existing cooperatives create new jobs, thereby positively affecting the social standard of living of the local population", summed up Victor Sheremeta.