PROBLEMS OF PROCESSING GARDENERS – SUPPORT OF DEPUTIES

In my previous information from March 10, I wrote about the meeting of the Committee of the Verkhovna Rada of Ukraine on Agrarian and Land Policy (committee hearings) on the topic: "State Support for the Agricultural Sector 2024" chaired by the Chairman of the Committee, Oleksandr Haidu.

During the speeches from the NGO "Ukrainian Walnut Association" at the meeting of the Agrarian Committee of the Verkhovna Rada, the president of the association, Gennady Yudin, took part and spoke about the problem of lack of funding for all horticultural enterprises that receive their own harvest in orchards and plan to develop processing facilities for its primary technological processing. During the speech, a letter was sent to the Agrarian Committee of the Verkhovna Rada with proposals for making the necessary changes to the resolution of the Cabinet of Ministers of Ukraine No. 739 "Some issues of providing grants to processing enterprises" dated 06/24/2022.

Further, based on the results of committee hearings and speeches at them, by decision of the Agrarian Committee dated 03/18/24, the relevant RECOMMENDATIONS were approved, which were sent to the Cabinet of Ministers and relevant Ministries for further processing.

The Recommendations approved by the Committee of the Verkhovna Rada of Ukraine on Agrarian and Land Policy, recommended to the Ministry of Economy of Ukraine together with the Ministry of Agrarian Policy and Food of Ukraine, hereinafter quoted:

"…5.3. Consider the possibility of amending the Resolution of the Cabinet of Ministers of Ukraine dated 06/24/2022 No. 739 "Some Issues of Grants to Processing Enterprises" regarding the normalization of the activities of horticultural enterprises to receive grant funds for the development of processing capacities for the primary technological processing of the harvested crop, including for the commercial processing of products of their own production..."

It is gratifying that the problems of gardeners have found such active support among the people's deputies of Ukraine. The Agrarian Committee of the Verkhovna Rada, chaired by the Chairman of the Committee Oleksandr Haida, supported in its recommendations the request of gardeners, which was presented on behalf of the horticultural enterprises of the Vinnytsiasadvinprom Corporation and the Ukrainian Walnut Association in his speech by Gennady Yudin.

The position of the people's deputies is encouraging and inspires confidence in the further positive resolution of this horticultural problem. Because, despite the significant list of problematic issues considered during the committee hearings, the general, descriptive part of the Recommendations of the Agrarian Committee of the Verkhovna Rada sets out this urgent problem of gardeners in great detail. I quote further:

"…At the same time, the participants in the hearings emphasized that every year more and more horticultural agricultural enterprises are faced with the need for primary processing of fruits after harvest.

The harvested crop of nuts (in particular walnuts, hazelnuts, almonds) immediately after being harvested in industrial orchards is subject to mandatory primary processing, which includes a number of sequentially performed technological operations: cleaning, washing, drying, calibrating, and packing nuts for storage of the harvest.

Only after the above-mentioned technological operations are performed are nuts used for their further promotion: sale in shell (including for export), further deep processing - peeling, blanching, production of nut products and ingredients, etc. In industrial orchards of stone and pome fruit crops, in berry plantations there are also appropriate technologies for the primary processing of fruits and berries after harvesting.

Due to the need for primary technological processing of the nut harvest collected in orchards, horticultural agricultural enterprises urgently need to purchase equipment to perform the above-mentioned technological operations, namely: equipment for cleaning, washing, drying, calibrating, and packaging.

Most gardeners-farmers plan to purchase this equipment using the current grant program in accordance with the Resolution of the Cabinet of Ministers of Ukraine dated June 24, 2022 No. 739 "Some Issues of Providing Grants to Processing Enterprises."

Individual horticultural enterprises have already submitted applications for grant funds with business projects to develop processing facilities for primary technological processing of the harvest collected in the gardens. However, decisions on these applications have not been made and grant funds have not been received.

According to the participants in the hearings, the main problem is as follows. According to paragraph 10 of the Resolution of the Cabinet of Ministers of Ukraine No. 739, the recipient of grant funds in his application indicates the type of economic activity in accordance with the KVED DK 009:2010. According to the KVED, the cultivation of perennial crops belongs to Section A Group 01.2 Classes 01.21 - 01.29, which are one of the main ones for most horticultural enterprises.

At the same time, the section of Section A includes only crop cultivation, and the activity of further processing of products is classified in accordance with the KVED in Section C Manufacturing Industry. In turn, only types of economic activities of Section C Manufacturing Industry are eligible for receiving grant funds in accordance with the specified resolution of the CMU.

In an official explanation, the State Statistics Committee also noted the impossibility of using Section C of the KVED by horticultural enterprises to conduct economic activities related to the primary processing of crops harvested in orchards (cleaning, washing, drying). The position of the State Statistics Committee is that primary technological processing of crops in orchards should be classified according to the KVED: Section A Group 01.2.

Therefore, today the situation has developed that all horticultural enterprises that receive their own harvest and plan to develop processing facilities for its primary technological processing will not be able to participate in the grant program in accordance with Resolution of the Cabinet of Ministers of Ukraine No. 739.

The settlement of this problem, according to the participants in the hearings, is possible by adjusting the text of the Resolution of the Cabinet of Ministers of Ukraine No. 739"...

Therefore, the Recommendations approved by the Committee of the Verkhovna Rada of Ukraine on Agrarian and Land Policy on March 18, 2024 and sent for further processing to the Ministry of Economy will serve as the basic platform for the further work of the Vinnytsiasadvinprom Corporation and the Ukrainian Walnut Association in solving this problem.

… "Give me a point of support ..." – this famous saying of the ancient Greek scientist Archimedes of Syracuse has sounded extremely relevant at the moment in support of the specialized Agrarian Committee of the Verkhovna Rada for the country's gardeners.

Gennady Yudin, President of the Ukrainian Walnut Association.

Serhiy Boychuk, General Director of Vinnytsiasadvinprom Corporation