The initiative of the new team of the Ministry of Defense to involve as many domestic producers as possible in as many domestic producers as possible and excluding intermediaries will be an incentive to expand production, lead to increased investment in the agricultural sector and job creation. This is the opinion opinion was expressed by the Director General of the Association of Milk Producers (AMP) Anna Lavreniuk in an exclusive commentary to UNN.
Hanna Lavreniuk clarified that the Association of Milk Producers unites farms engaged in cattle breeding and raw milk production. However. a large part of the AMP member farms have developed other areas of production: in particular, fruit and vegetables and their processing, own dairy and meat and meat processing, cereal and flour production, etc.
She reminded that during the first six months of the full-scale invasion, when there was an almost complete blockade of dairy exports and disrupted sales in the domestic market, it was organized with the support of the Ministry of Agrarian Policy procurement of milk powder, butter and condensed milk for the needs of the Armed Forces directly from processing enterprises has significantly supported the market balance and the operation of both dairy processing plants and dairy farms.
Given this experience, the Association of Milk Producers supports the initiative of the of the Ministry of Defense to expand cooperation with domestic producers.
Transparent access to tenders for as many domestic producers as possible of food products can have a cascading positive impact on the market: to equalize balance the supply of products on the market in the face of limited exports, will encourage agricultural enterprises to invest in the creation and expansion of their own processing facilities and, consequently, reduce pressure on export routes. Moreover will even encourage farmers to organize into cooperatives to create a larger lot of products for the announced tender. From the perspective of the dairy business, transparent and direct procurement through SE "State Logistics Operator could become an additional guaranteed sales channel for raw milk and finished dairy products, as well as beef and veal, and provide an additional impetus for business investment in these sectors. It is a shame when our defenders eat frozen beef from South America, which has traveled a long way by sea and land, while domestic livestock production is able to fully meet the need for quality beef and veal, while creating jobs and added value creating jobs and added value for the Ukrainian economy
According to her, the EBA is ready for an open dialog with the new team of the Ministry of Defense to make this initiative successful.
At the same time, according to Lavreniuk, the Ministry of Defense should take into account certain manufacturers when developing tender conditions.
In particular, they should allow producers who have real production facilities, jobs, and tax payments to the budget, rather than one-day firms that may also sell counterfeit products. In addition In addition, it is desirable that the Ministry of Defense ensure the stability of orders and timely payment.
This, in turn, will lead to competition between producers and, accordingly, to lower purchase prices.
"Direct competition between producers at tenders will help to improve the quality and range of quality and expanding the range of food in the army by setting and and the need to meet high standards in a transparent competition. А And procurement without intermediaries will definitely allow us to significantly reduce purchase prices," concludes Lavreniuk.
Recall
Arsen Zhumadilov, Director General of the newly created State Enterprise "State Operator Arsen Zhumadilov statedthat the new strategy of defense procurement in food provides for maximum participation in tenders by producers of products, including national ones, not intermediaries. As well as the gradual abolition of discriminatory requirements that created advantages for certain market participants.