November 20 2002, 15:42 APK-Inform

50-70 pc of Ukraine's farms and 50 pc of processing enterprises will end up year with losses - agriculture ministry official

Deputy State Secretary for Ukraine's Agricultural Policy Ministry Yuri Luzan has told the meeting of German consulting group with Ukraine's agriculture-related organisations, held in Kiev today, that cut of state farm support in Ukraine might bring quite negative consequences for the country.

He said, as of today, farming enterprises had paid about 94 percent of accrued taxes to state budget, but had received from the budget just 64 percent of the funds planned. This will result in 50 percent of farming businesses and the same percentage of processing plants ending up this year with losses.

Another expert has said, however, that true amount of loss-bearing farms will be as much as 70 percent, despite official statistics showing just 50 percent. Another 20 percent of farms will have to show ghost profits, being forced to do so by local authorities.

Luzan has also said that total price ratio for farm products has been negative, constituting minus 16 percent, while costs of farm supplies increased by 1 percent. He did not specify, however, which period of time these figures were applicable to.

He also thinks that cut in farm support will lead to an increase in the share of barter transaction and will push farming industry further into shade.