Institute of Agrarian Economics jointly and Ukrainian The Association of Potato Producers (UAPK) has developed a state program for the development of industrial potato growing for 2021-2025, which provides, in particular, the construction potato storage on the terms of government funding 30% of their value. This is reported by the Internet portal SEEDS.org.ua according to the information of the UAPK.
According to the UAPK press release, the implementation of the program will allow building 35 potato storages in Ukraine with a total storage capacity of 158,6 thousand tons. In particular, four storage facilities for potatoes with a total capacity of 41 thousand tons will be built in the Cherkasy region, eight storage facilities for 38,2 thousand tons in Lviv, six storage facilities for 29 thousand tons in Chernigov, and three storage facilities for 15 thousand tons in Zhytomyr region. tons, Kherson - two storage facilities with a capacity of 17 thousand tons. In other areas, construction is planned in smaller volumes.
“The average cost of building such a storage facility is UAH 10-12 million. If we assume that a loan for such construction costs 27% per annum, then it becomes clear why a small and medium industrial potato producer cannot afford such expenses, ”the UAPK notes.
In February, the Association sent a letter to the President of Ukraine Volodymyr Zelensky, in which he asked to assist in the adoption of the state program for the development of industrial potato growing for 2021-2025, developed by experts from the UAPK and the Institute of Agrarian Economics, commissioned by the Ministry of Economy.
The UAPC noted that the state budget will receive UAH 3,8 billion in taxes, fees and an increase in VAT revenues over 5 years of the program's implementation, if approved.
According to the association, the number of industrial potato farms in Ukraine is annually declining by 10-13% due to unprofitability, riskiness and the need for high capital investments. So, according to the UAPK, if in 2017 1296 farms were engaged in industrial potato cultivation, then in 2018 their number decreased to 1114.