Dairy industry: regional overview

The government’s plan to increase exports and reduce the negative trade balance in 2012 provides for a significant role of agricultural industry, which projected USD 5 billion in export earnings. In 2011 exports of food stuffs brought USD 3.7 billion.

Milk production in 2012 is projected to grow up to 6.5 million tons, increased by 11% as compared with 2011. The plan envisages construction of 104 new and reconstruction of 1198 old dairy farms.

In 2011, Belarus produced 5.024 million tons of milk, exported more than 4 million tons and earned USD 500 million.

At a meeting concerning the development of the dairy industry held in late February, president Alexander Lukashenko ordered to establish a large milk processing holding, effectively requiring the government to take control over the industry and buy out shares from private owners at their nominal price. The president finds it more appropriate to concentrate all revenues from dairy production and export in the state’s hands, and if necessary sell the aggregative enterprises at higher prices.

In the meantime, government’s optimistic plans to increase exports of milk will not necessarily come true. The livestock of cows is constantly decreasing over the years, for instance, by the end of 2011 it was 86.5% of the livestock of January 1, 2011. Nevertheless, milk production and exports were growing in recent years.

However, Belarus faces barriers in major Belarusian export markets for milk – Russia and Ukraine. As of 1^st of March Ukrainian authorities temporarily suspended imports of Belarusian meat and dairy products to Ukraine due to the detection of antibiotics in the dairy products on a large scale. Moreover, as of 1^st of April the supply of whole milk and whey powder from Belarus to Russia will be suspended.

Diary production by regions: