Construction of 35 new potato warehouses in Ukraine with government support
According to a press release from the association, the implementation of the program will build 35 potato storage facilities in Ukraine with a total storage capacity of 158,600 tons. In particular, four potato storage facilities with a total capacity of 41,000 tons will be built in the Cherkassy region, eight storage facilities of 38,200 tons in the Lviv region, six storage facilities of 29 000 tons in the Chernihiv region, three storage facilities of 15,000 tons in Zhytomyr region, and two storage facilities with a capacity of 17,000 tons in the Kherson region. In other regions, construction is planned in smaller volumes.
Ukrainian Association of Potato Producers:
“The average cost of building such a storage facility is 10-12 million UAH. If we consider that a loan for such a construction costs 27% per year, it becomes clear why small and medium industrial potato producers cannot afford such costs.
In February, the association wrote a letter to Ukrainian President Volodymyr Zelensky asking for help in adopting a state-funded program for the development of industrial potato cultivation for 2021-2025 developed by experts from the association and the Institute of Agrarian Economy at the request of the Ministry of Development, Economy, Trade and Agriculture.
The association said the state budget will receive 3.8 billion UAH (136,046,156.00 USD) in taxes, fees and growth in VAT revenue during the five years of the program if approved.
According to the association, the number of industrial potato farms in Ukraine is reduced by 10-13% per year due to non-profitability, risks and the need for high investments. Thus, according to the association, if in 2017 some 1,296 farms were engaged in industrial potato cultivation, in 2018 their number rose to 1,114.