The Verkhovna Rada of Ukraine postponed the introduction of the new mechanism of budgetary subsidy payments per cow until 2011, which was supposed to be in use in 2010, instead of subsidizing producers of milk and meat through the meat and dairy processing enterprises.

The replacement of subsidy payments for farmers for milk and meat delivered through processing enterprises for direct subsidies for cow owners from the special fund of the state budget was envisaged by the state budget for 2010. According to the Law on State Budget of Ukraine, meat and dairy enterprises were to pay the value added tax (VAT) into a special state budget fund for future payment of subsidies per cow, available on January 1, 2010.

So far, the subsidy mechanism for farmers has been valid according to which the VAT from dairy product sales by milk and meat processors is not transferred to the budget but paid to the producers in the form of grants depending on the amount of milk and meat delivered for processing. Meat and milk processing companies have repeatedly appealed to the state administration to maintain in force the old mechanism of subsidies.

MilkUa.info