May 17, 2011

 

Belarus eyes twofold dairy exports in five years

 

 

Belarus, accounting for the world's 5% of dairy exports, has set itself an ambitious target of increasing its dairy exports to twice its current capacity in the next five years.

 

Ways of meeting the target were under discussion at a national milk forum held in Minsk last week with managers of major dairy companies participating.

 

The milk sector is one of Belarus' major foreign currency earners. In 2010, Belarus exported US$1.3 billion worth of milk. The objective to double exports gains additional importance in the light of the current foreign currency shortages.

 

Between 2000 and 2010, Belarus increased exports of powdered fat-free milk nearly seven-fold, of powdered full-cream milk 79-fold, of butter ninefold, of cheese 18-fold and of casein nearly threefold, said Maryya Klimava, of Meat and Dairy Industry Institute.

 

Dairy exports to CIS countries jumped 30-fold, while dairy exports to western Europe plunged by 90% between 2000 and 2010.

 

Russia is Belarus' biggest export market. Exports to Russia rose 27-fold over the same period. The reliance on one market is a big disadvantage for the dairy sector as Moscow may impose restrictions on imports from Belarus. Russia reportedly plans to boost domestic production of cheese, which accounts for a lion share of Belarus' exports.

 

Klimava noted that dairy sales in Russia are likely to decrease in three to four years. She advised Belarusian creameries to tap new markets.

 

This would not be easy as Belarus faces tough competition from the EU, where dairy products are of higher quality.

 

"Our raw milk is of poorer quality than milk in EU countries," Klimava said. "Belarusian milk contains less fat and protein."

 

The average fat content in Belarusian milk is 3.6% whereas in EU-produced milk it ranges between 3.9% and 4.1%. Protein content is also lower 3% against 3.4%.

 

"Belarus loses about US$20 per tonne of milk processed into butter and US$50 per tom of milk processed into cheese," Klimava said.

 

She said it is necessary to improve fodder quality and upgrade farms to raise fat and protein content. In late 2010, the government approved a 31.5-trillion rule programme to modernise the dairy industry.