June 26, 2012
Russian milk producers appeal to halt dairy imports from Belarus
By the end of September, importation of full cream and skimmed milk powder, whey powder and butter with a fat content of 72.5% and 82.5% from Belarus has been appealed to be suspended by the Russian National Union of Milk Producers (Soyuzmoloko), RIA Novosti reported on Monday (June 25).
Belarus has failed to make good on its promise delivered in March not to lower its indicative prices of dairy exports further, and to suspend the export of milk powder and whey powder to Russia in the second quarter of the year, said Soyuzmoloko in a statement. Russian producers are incurring "unprecedented losses" as the Belarusian exports have driven prices in the market down, it said. The Union said that there was no control over dairy products coming to Russia from Belarus.
"Data from Belstat [Belarusian National Statistics Committee] fail to give a true picture of the situation, because a large amount of products intended for the domestic market - up to 50% in some cases -- go to Russia at prices that are significantly lower than their indicative prices." Moreover, all Belarusian dairy exports soared to "unprecedented" levels in the first quarter of 2012 compared with the same period of the previous year, it said, noting that the actual figure, accounting also for shipments initially intended for the domestic market, was estimated to be "impressively higher."
Soyuzmoloko has once again called on the Russian government to consider introducing quotas on Belarusian dairy products and negotiating with the Belarusian producers their indicative prices. It also suggested allowing Belarusian producers to sell their dairy products only on an exchange and devising comprehensive rules for controlling the quality, prices and volumes of Belarusian dairy products supplied to Russia. The Union sent copies of the appeal to the Government of the Russian Federation, the agriculture ministry and the agriculture committee in the State Duma (lower parliamentary chamber).
