Agriculture sector report-2016 (Eng)

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AGRICULTURE SECTOR


SECTOR CARD

1st

place in the world for export of sunflower oil

6th

place in the world for wheat export

3rd 2nd

place in the world for corn export

26.8%

30.2%

in 2013

40%

in 2014

in 2015

SHARE IN EXPORTS

place in the world for grain export

42% for 9 months of 2016


17.4%

in 2013

16%

in 2014

16.3%

in 2015

SHARE OF AGRICULTURE IN THE COUNTRY’S GDP

One in five Ukrainian workers is employed in agriculture

26 of the 100 largest Ukrainian companies are agriculture-oriented

26/ 100


SECTOR STRUCTURE

Bread and bakery products Flour and cereals

Breeding

Grapes, fruits, walnuts, mushrooms

Oil, vegetables and industrial crops

Crop production / Food and processing industry

Grain and pulse crops

Livestock byproducts

Mixed farming

Meat and meat products

Cattle, pigs, poultry

Milk and milk products

Livestock / Food and processing industry Feed production


Fishing Water bioresources

Fish breeding and production of other aquatic resources

Industrial fishing Land reclamation Land use

Putting agricultural lands in production and removing agricultural lands from production

Fish industry Processing of fishing products

Forestry and logging

Agricultural lands

Hunting

Processing and manufacturing of wood products

Forestry / Wood processing Harvesting of minor forest products


Rolling Review: SECTOR’S REGULATORY ENVIRONMENT We estimate that there are tens of thousands of regulatory acts that contain hundreds of thousands of regulatory standards, including the ones adopted in the period of the Soviet Union, in force in Ukraine. Regulatory standards are the rules established for businesses by the state. The approval of a new rule as well as any other public policy decision requires analyzing the problem and choosing a way to solve it.

673

We can say that the effective regulation is a situation, when a solution to problems was achieved with minimal costs for businesses and the state.

74 171 Agriculture sector is regulated by 673* acts: 74 Laws

428

171 Acts of the CMU 428 Acts of CEB 85 Acts of the USSR / Ukrainian SSR *

Considering the fact that some regulatory acts can approve two or more structural elements (regulations, procedures, typical form, etc.), the total number of acts may be different

85


ROLLING REVIEW: REVIEW OF REGULATORY ACTS The quality of regulatory acts is assessed using a special methodology each year. The process is conducted under the plan published in advance. According to its result, a regulatory act is recommended for keeping, revising or removing.

639/ 96

Current results of the sector’s inventory are following:

40%

Legality*: 639 legal /96 illegal Importance: 40% are currently important or partly important Corruption risks: 17 with high corruption risks/ 25 with middle-corruption risks / 34 with low corruption risks Impact on business: 5 have a high level of corruption risks because of their impact on business Effectiveness: only 89 are relatively effective The next stage of the systematic review of regulatory acts is to work with markets under the plan approved by the ministry. The pilot markets for our sector for December 2016 – March 2017 are: Wood market Market of export of fruits, berries and walnuts (Market of walnut growing products)

*

Considering the fact that some regulatory acts can approve two or more structural elements (regulations, procedures, typical form, etc.), the total number of acts may be different

17/ 25/ 34 5 89


Rolling Review: GOALS OF REGULATION 1 2 3

Food security and independence

(Consumption of sufficient domestic safe food)

Sustainable development of rural areas

(Improving the quality of life in rural areas and preserving the diversity of rural areas)

Sustainable nature management and climate control

Rolling Review: MAIN TASKS OF REGULATION Physical and economic availability of food Domestic market saturation of food products Increasing the quality and safety of food products Population growth in rural areas

Increasing the purchasing power of rural population Attracting capital investments in rural areas Introducing technologies of sustainable resource management


Rolling Review: FUNCTIONS OF REGULATION Ministry of Agrarian Policy 38 State Service for Food Safety and Consumer Protection 17 State Agency for Fisheries of Ukraine 17 State Service of Ukraine for Geodesy, Cartography and Cadastre 11 State Agency of Forestry Resources 7

>90%

is a share of domestic production of food available to Ukrainians

>25%

is a share of agriculture in GDP

з 280$ до

INDICATORS TO BE ACHIEVED

500$

rise in the cost of a notional ton of agricultural exports

100%

of food enterprises are under effective security control

>12% <35%

of annual increase in capital investments in rural areas

is a share of eroded lands in agricultural production


LAWMAKING PREPARED DRAFT LAWS Draft Law of Ukraine “On Amendments to the Law of Ukraine “On Peculiarities of State Regulation of Business Entities Associated with the Sale and Export of Timber” regarding establishing legal principles to register and sell timber products to comply with the requirements of the Association Agreement between Ukraine and the European Union Draft Law of Ukraine “On amendments to the Customs Code of Ukraine to harmonize procedures for the preliminary documentary control and EU requirements” Draft Law of Ukraine “On amendments to Article 14 of the Law of Ukraine “On basic principles and requirements to quality and safety of food products” Draft Law of Ukraine “On amendments to Art. 23 of the Law of Ukraine “On narcotic drugs, psychotropic substances and precursors” Draft Law of Ukraine “On amendments to the Law of Ukraine “On basic principles and requirements to quality and safety of food products” (regarding registration of export capacities) Draft Law of Ukraine “On local agricultural markets” Draft Resolution of the Cabinet of Ministers of Ukraine “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine” #334 from April 9, 2008 “On approval of procedures to use narcotic drugs, psychotropic substances and precursors in veterinary medicine” Draft Resolution of the Cabinet of Ministers of Ukraine “On approval of a Regulation on the unified state system of electronic registration of timber” Draft Resolution of the Cabinet of Ministers of Ukraine “On approval of a procedure to issue a certificate of origin of timber and sawn timber made of it” Regulation on procedures to sell unprocessed timber

INTERACTION WITH STAKEHOLDERS

MEDT Ministry of Agrarian Policy State Service for Food Safety and Consumer Protection SRS Business associations


RIA + SME-Test The RIA and SME-Test for the Resolution “On the implementation of a pilot project regarding the temporary restriction of using the Resolution of the Cabinet of Ministers of Ukraine #1548 dated December 25, 1996 and the Resolution of the Cabinet of Ministers of Ukraine #1222 dated October 17, 2007” have been prepared The draft Order of the Ministry of Agrarian Policy and Food of Ukraine “On Amendments to the Regulation on keeping a record and processing transactions with grain and its derived products on grain-collecting and grain-processing stations”

34 DRAFT LAWS OF UKRAINE WERE ANALYZED


+38 (044) 332 49 12 | office@brdo.com.ua | www.brdo.com.ua Khoryva St., 55K | Kyiv, 04071, Ukraine SECTOR HEAD Andriy Zablotskyi | a.zablotskyi@brdo.com.ua


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