Farmers will be reimbursed for up to 50% of their dairy production development costs
Ukraine is introducing new support mechanisms for the dairy industry, which are intended to help milk producers and processing companies expand their production.
Key support measures include compensation of up to 50% of the cost of building and renovating farms, preferential loans, government guarantees, and stimulating demand for Ukrainian products through the “National Cashback” program.
The government notes that these new tools are aimed at modernizing dairy farms, increasing production volumes, and developing milk processing in Ukraine.
How the government will support the dairy industry
Participants in the event discussed key challenges facing the development of dairy farming, producers’ access to financial resources, the adaptation of Ukrainian legislation to European Union requirements, and the prospects for the development of the domestic market.
During the discussion, government decisions designed to stimulate the sector’s development were presented. In particular, this year the government will partially compensate for the costs of constructing and renovating livestock farms and complexes. For enterprises that have relocated their production from frontline territories and are investing in the creation or modernization of livestock complexes, the compensation will amount to up to 50% of the project’s cost.
One of the key support tools remains the “Affordable Loans 5-7-9%” program. Under this program, agricultural producers can secure up to 90 million UAH in financing, while processing companies can receive up to 150 million UAH. In addition, businesses can take advantage of state portfolio guarantees and mechanisms provided by the Agricultural Loan Partial Guarantee Fund.
Participants paid special attention to stimulating demand for Ukrainian products. Currently, over 10 million Ukrainians and 2,031 producers have joined the “National Cashback” program, and more than 422,000 Ukrainian-made products are registered in the system. Since the program’s launch, Ukrainians have purchased nearly 134.3 billion hryvnias worth of domestic products, receiving 9.7 billion hryvnias in cashback. The Ministry of Economy is also working to expand the program to include Ukrainian-produced block cheeses.
As noted by Taras Vysotsky, Deputy Minister of Economy, Environment, and Agriculture of Ukraine, even amid the war, the dairy sector has significant potential for growth. According to him, the government is focused on expanding producers’ access to financing, supporting investments in the modernization of farms and processing plants, stimulating domestic demand, and harmonizing legislation with EU standards. This should enhance the competitiveness of Ukrainian dairy products in both domestic and foreign markets.
Following the roundtable, participants agreed to continue working together to improve mechanisms for state support of dairy farming and to create new opportunities for the sector’s development.
The event was organized by the Verkhovna Rada Committee on Economic Development. Participants included representatives of relevant ministries and government agencies, members of parliament, industry associations, milk and dairy product producers, and experts.
This was reported by the press service of the Ministry of Economy.
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