Does WTO improve chances for grain farming in Ukraine?

Investing in Ukraine's black soil

(businesspress24.com) - Traditionally agriculture plays a strong roll for Ukraine’s economy. At the moment it is still hard to forecast which impact the WTO membership will have for which parts of the Ukrainian farming industry. The door opened now a bit wider for Ukrainian farm produce exports to the close EU markets. Surely unproductive companies will encounter harder competition. Farmers where used so far to receive direct and even more indirect subsidies, which have to be reduced after all WTO rules will be implemented. Therefore production might shrink in the first years slightly. Anyhow this might turn out to be actually a long term advantage since reforms and investments will be forced. Politics are still very reluctant on reforms since more than a forth of the workforce is employed in agricultures.

As a big grain producer, Ukraine profits at the moment on the high grain market prices. Especially the most common grain sorts, sunflower seeds and rape seeds seem promising. The reform process initiated by the WTO opens chance for foreign investors to invest and profit on the world wide price hikes. Especially in the grain and corn sector the least risky impacts are to be expected. The WTO
does not change the amount of farmers subsidies. Anyhow depends a lot on the implementation of the new rules by the Ukrainian government.

Positive, the government has more obstacles to implement grain export stops. Those keep the bread grain wheat prices artificially down, without having actually any noticeable effect on prices of the stables for the Ukrainian consumer. J&L Lviv (www.j-l.com.ua) encounters recently more requests on foreign farms which want to start up business in the grain sector. Reasons therefore are the increase in demand of bio energies and demand in Asia. With a thorough planning and information research on accounting and legal requirements for agriculture investments recent stories of success can be told. German and Danish farmers give good example in Western Ukraine. J&L learnt herby it is crucial to keep track not only agricultural experience but keep a close eye on the legal and accounting frame work from the very beginning.



It is important for a foreign direct investment to take care about:

• Checking legal status of the land and farm building where to invest
• Planning time frame of registration for a own company on farming entities
• Calculating the reporting requirements costs of the state bodies
• Organizing duty free import of equipment from abroad and its registration
• Implementing tax optimization and profit transfers
• Aligning the deductibility of expenses from abroad to the Ukrainian standard
• Receiving state support for farmers

The smart implementation on the above mentioned bullet points are especially in the beginning of highest importance for a successful grain farm start up.

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Company information / profile:
J&L is a Danish managed Company with 19 employees, which is designed to assist foreign companies in Ukraine with practical legal, property and tax knowledge on real projects in Western Ukraine.



For foreign businesses we offer assistance in:



Legal Services

- Commercial & Contract Law

- Corporate Law

- Mergers & Acquisitions

- Real Estate, Construction & Land Law

- Tax Law

- Labor and Employment Law



Accounting, Audit & Tax Services

- Bookkeeping Services according to Ukrainian Requirements

- Accounting & Reporting according to IAS, GAAP

- Tax Planning & Administration

- Tax Optimization Consulting

- Audit Reports according to IAS, GAAP

- Financial & Tax Auditing

- Payroll



Business Consulting

- Establishing Businesses in Ukraine

- Turnkey Project Management

- Business Intelligence & Market Research

- Market, Supplier & Location Analysis

- Ready-to-use Office Space



Property Valuation & Real Estate Advice

- Certified Property Appraisal

- Real Estate Search

- Construction & Renovation Supervision

- Real Estate Due Diligence



Human Resource Support

- Recruitment of Staff for Management & Production

- Human Resource Consultation

- Temporary Staff Support

- Employment Procedure & Permit Assistance





Further J&L offers a commercial real estate data base with more than 400 entries to establish business. If you visit the Lviv area we like to invite you to our office.





Ask for more information about J&L’s services and more than 55 reference projects and clients and visit www.j-l.com.ua

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requests:
Patrick Jung
Project Manager
J&L Consulting LTD
Sholom-Aleykhem Street, 11
Lviv, 79007, Ukraine
Tel. +380 32 297 05 97/96
Mob.+380 67 350 2700
Fax. +380 32 297 05 95
www.J-L.com.ua

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press contact / Agency:

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comments:

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Company: J&L Ukraine

contact information:
Contact person: Patrick Jung
Town: Lviv/Lvov
Phone: +380 32 297 05 97/96

Keywords (optional):
Ukraine, arable, land, farm, grain, legal, accounting, ukrainian, lvov ...
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