First of all, the export of grains, poultry and different food products is expected to increase, ubr.ua reports.
According to scientists of the Institute of Agrarian Economy, the reduction of EU duties can lead to the increase of export of agricultural products to EU member countries to 50% in 2019, Director of the National Scientific Center “Institute of Agrarian Economy”, NAAS academician Yurii Lupenko said.
According to him, first of all, the export of grains, poultry and different food products, as well as tobacco products is expected to increase.
The expert emphasized that the state of Ukraine’s usage of export quotas within 2015-2016 remains unbalanced.
“For the beginning of 2015 Ukrainian exporters fully exhausted annual quotas for honey, barley cereal and flour, processed grain, grain cereals, processed tomatoes, grape and apple juice as well as oatmeal. However, national agrarians used only half of quotas for barley, sugar and chicken. The quotas for mutton, sugar syrups, starch, bran, mushrooms, sugar corn, garlic, processed milk and oil products were not used at all. Concerning other products, the quotas were used not more than for 15%”, he explained.
Yurii Lupenko noted that quotas were fully exhausted by those exporters, whose commodities were previously exported to EU. 235 enterprises, which already have well-established business relations, obtained permissions for export of agricultural products. The allocation of quotas only strengthens their competitive advantages, because there is no need to pay duties.
“During January-February 2016 the quotas for the current year have already been used for poultry, apple and grape juices, processed tomatoes, honey, corn and corn flour, wheat and wheat flour, barley and barley flour, oatmeal cereal, malt, wheat gluten and sugar”, the expert said.
That’s why, the academician explained, some Ukrainian manufacturers are not satisfied with the size of allocated quotas. Ukraine produces 1.2 mln tn of chicken. Its EU export quota is only 36 ths tn, while in EU chicken consumption is 12 mln tn. Thus, the Ukrainian quota makes up about 0.3% of the European market capacity of this type of meat.
