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Ukraine's meat processing plants to sue their colleagues in free economic zones
Ukraine's meat processing plants to sue their colleagues in free economic zones
Government of Ukraine recommended Ukrainian meat processing plants, placed on territories with common taxation regime, to initiate anti-dumping investigations against meat processing enterprises, operating on the territories of free economic zones (FEZ) and priority development territories (TPD), on the reason of unfair competition of the latter in domestic market of meat. This was told by Ukraine's Deputy Prime Minister for Agriculture Ivan Kyrylenko to the meeting of association "Ukrmyaso" (Ukrainian Meat) on Wednesday.
He said the FEZ-located meat processing plants were importing meat at low prices, using their tax preferences, and then sold their product in domestic market at much lower prices than those established in the market.
General Director of Ukrmyaso Volodymyr Popov said that in September, in the course of inspection of FEZ and TPD-located plants there were revealed facts of superprofits, received by some of them. Thanks to preferential import of raw materials and low prices for import raw material, the profit of these enterprises per tonne of meat has constituted about 1,200 euros. According to agriculture ministry's data, the price of import meat (mostly, chicken) at such plants is about $0.55 per kilo (transportation costs included).
There are 13 meat processing plants in Ukrainian FEZ's and TPD's. Their annual capacity is estimated in 75,000 tonnes of meat.
Currently in effect there is a ban for importing meat onto the territories of FEZ's and TPD's. However, importing companies successfully obtain permissions for clearance of their supplies through courts and do import meat onto these territories in spite of the ban.