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compulsory tagging of dairy products on
the Russian market. According to Belov,
this measure would incur the Russian
dairy industry additional costs of Rub35
billion ($500 million) per year, and now
the industry got a time-out to gather
some additional arguments to convince
the authorities to abandon this project
for good.
Neighbors remain positive
It is clear that there was no negative
impact of the Covid-19 on the dairy industry
in Belarus. The country’s President
took an unusual stance on the pandemic
saying the disease was not worth worrying
about. Speaking at a press-conference
in April, Lukashenko said nobody
was dying or would die from the coronavirus,
adding that “the country’s medical
workers have already found a cocktail of
medications to cure the disease”.
For this reason, Belarus has not introduced
a nationwide quarantine and
remained the only one country in Europe
not suspending football plays. Needless
to say, the country’s dairy plants continued
operating without any changes.
Belarus annually exports dairy products
of around $2.15 billion per year, Belarus
Agricultural and Food Ministry estimated.
The production capacities in the
country are nearly three times exceeding
the domestic demand, with the per capita
production of 730 kg is believed to be
one of the highest in the world.
Belarus may boost supplies to the
countries experiencing a shortage of
food products because of the Covid-19
pandemic, Ivan Krupko, Belarus Agricultural
Minister said. Belarus has a strong
potential in agricultural area, he said,
adding that in the first quarter of 2020
the country increased milk production by
5.6% as compared to the same period of
the previous year.
So far the Covid-19 pandemic has
not affected Belarus export program in
2020, the Ministry of External Affairs
said in a statement on its website. The
country’s food export added $120 million
during the first quarter of 2020 with
the biggest contribution to this dynamic
has been provided by the dairy and meat
industries, the Ministry reported.
In general, business is optimistic about
the prospects of export in 2020, the Ministry
added.
Dairy industry also maintains careful
optimism in Ukraine. The companies
have experienced a slump in profitability
because of the decreased demand for
dairy products of HoReCa segment, but
the profits are still high enough. Some
concerns are only raised over the competition
with the cheap European products
in the second half of the year.
The purchasing price of milk in
the European Union would not exceed
€0.25 per liter in the coming
months, and this is significantly lower
as compared to the purchasing price
in Ukraine, said Alex Lisitsa, president
of the Ukraine Club of Agrarian Business.
Ukraine dairy companies must be
braced for difficult times because of the
substantial competition with the European
companies who would come up
with their products, in the first place –
cheese and butter.
This would push down purchasing
prices and cause certain losses in the
industry, Lisitsa warned, suggesting that
the government should think of some
measures to support the country’s dairy
industry.
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