OREANDA-NEWS. July 16, 2010. The situation in the agricultural sector as a whole has been stabilized. That was said today by the Vice Prime Minister of Ukraine Viktor Slauta during meeting of the Coordinating Council for Agricultural Policy under the Cabinet of Ministers of Ukraine.

As noted by Vice Prime Minister of Ukraine, for the first half of this year, a growth rate of agricultural output amounted to 3,4%, including in agricultural enterprises - 7.7%. Volume of livestock production has increased overall by 4.1%, and in agricultural enterprises - 11%.

Stable is the situation in the food industry: during five months of this year compared with the corresponding last year period the production of critical food products such as frozen pork (at 30.7%), pork, fresh or chilled (23%), frozen beef (by 18,3%), sunflower oil (10,3%), butter (5,7%) has increased.

Total food production in May of this year compared with the previous month increased by 3,8%.
Prices increasing in the domestic food market is suspended.

According to the latest data as of July 10 the retail price of beef in food markets, as compared with the beginning of the year is decreased by 3,2%, of pork - by 5.4%, of fat - 21%, of eggs - nearly 42%.

However, Victor Slauta noted that the previous leadership of the state has left us with a heavy legacy - the loss of more than 15% of GDP, unbalanced State budget deficit which last year exceeded 16%, unprecedented in the modern history of Ukraine external borrowings. The full implications of such "management" also affected the agricultural sector. State program of Ukrainian village for the period until 2015, adopted in late 2007, by the Government headed by Viktor Yanukovych, was almost forgotten and not performed. The core industry development programs were suspended.

"This year will be difficult, and we will direct budget support funds only on the most critical for the development of industry trends, particularly in the recovery program of lending rates of commercial banks, budgetary livestock subsidies and state support for crop production, partial compensation for the cost of a complex agricultural machinery of domestic production" – theVise Prime Minister of Ukraine said.

But despite this situation, Victor Slauta stressed that the State this year will also support the establishment of a network of wholesale markets, the operation of machinery , equipment and genetic resources financial leasing, measures to restore and improve soil fertility.