April 2 2003, 09:21 Interfax-Ukraine

Resumption of US poultry meat imports to Ukraine may negatively affect local producers

Cancellation by Ukrainian government of the ban for imports of poultry meat from USA may negatively affect performances of local poultry producing factories because of their inability to compete with cheaper American produce, Director General of Manufacturing and Research Association "Ukrptakhoprom" (Ukrainian Poultry Production Association) Volodymyr Semena thinks.

"We will not be able to compete if American produce is imported at low prices, as used to be before the ban", Semena said.

He noted that in Ukraine there was import duty for poultry meat currently in effect, in the amount of 1.5 euro per kilo, but by-passing of the duty by meat importers were possible.

He reminded that before the ban had been introduced, many exporters had been using different schemes of imports, allowing to evade customs charges.

Semena supposed that because of cancellation of the ban, poultry meat imports to the country in this year might exceed 100,000 tonnes (in 2002 it constituted 70,000 tonnes, including 10,000 tonnes brought from US before complete ban was imposed).

According to specialists, the meat has been generally imported to Ukraine through free economic zones and priority development territories. Despite currently effective ban to import meat through these territories, exporting companies manage to get their supplies cleared and bring them into the country, referring to courts to overrule the ban and using lack of precision in legislation.

There are 18 large companies - producers of poultry meat in Ukraine.