Dairy companies are to subsidize dairy farms in Ukraine.
As per decree of Cabinet of Ministers of Ukraine #291 of April 2, 2009 ukrainian milk processors are to pay accrual VAT as a subsidy for dairy farms.
This regulation is mutually beneficial for farmers and dairy companies.
Milk processor are able to accumulate VAT sums and use them to buy milk from farmers.
Farmers can get more money for their milk sold.