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19 May 2024

News

14.02.2014

Price for gas for greenhouses will decrease by 25%

Price for gas for greenhouses will decrease by 25%

In 2014, greenhouses can get significant support and impetus for development. In particular, it is planned to reduce the price for natural gas for greenhouses up to 286 USD (by 25%) per 1,000 cubic meters, excluding VAT and additional tariffs. Also, it is supposed to reduce the cost of electricity by 10%. These measures will help offset the impact of the negative profitability in production of vegetables in greenhouses in 2012 by agricultural enterprises of Ukraine at the rate of -0.1%. It was informed by the Association "Ukrainian Agribusiness Club".

This year, these steps are extremely important as reducing harvest vegetables in 2013 led to increasing their cost. Supporting measures will help to reduce the likelihood of the occurrence of similar situations in the future. It should also be noted that the State budget of Ukraine for 2014 has funds of State support for development of hop, vegetable production, laying young orchards, vineyards, berry in amount of 700 mln UAH.

The high cost of domestic greenhouse vegetable production negatively affects all the players of the market, without exception: a producer is often forced to sell the goods himself at a loss since has to not only grow quality vegetables, but still be competitive with imported analogous, a consumer is forced to pay high prices for goods, which theoretically should be available to everyone, and the State receives less tax revenues because the producer either doesn’t earn on the production at all, or has a low marginality. In 2013, Ukraine imported 127,5 ths t of vegetables totaling 185,6 mln USD, that means we can implement import substitution policy to the domestic product, so the funds could remain inside the country instead of going abroad.

"Currently, the key issue in greenhouse production is the optimization of cost, since even with a decrease in energy prices and with the State support the production could remain low profitable. To raise awareness of the farmers in the ways and methods in optimizing the production to get optimal profitability, AgriEvent agency organized III. Dutch-Ukrainian Greenhouse Industry Forum «Profitable Greenhouse Production in Ukraine. Investing in People and Technologies» participation in which is free of charge”, explains Igor Ostapchuk, Expert on agricultural markets of UCAB.

Association “Ukrainian Agribusiness Club”

3 floor, 146 Zhylianska Str.

01032 Kyiv, Ukraine

Phone/Fax: +380 44 2362097/79

 
099 272 59 30


Tetiana Kotyk 
 
 The Association "Ukrainian Agribusiness Club" (UCAB) www.agribusiness.kiev.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.

 

 




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