The present and future of the dairy industry in Belarus DairyNews Interview with I.O. Minister of Agriculture and Food of the Republic of Belarus - Leonid Marynich. DN: Leonid Adamovich, please describe the current state of the dairy industry in the Repub

MILK processing in the republic as of the beginning of this year was concentrated in 43 organizations, the range of dairy products exceeded 1.2 thousand items.  DN: What products is milk processed into? 27 percent of resources are processed into whole milk products, 30 percent into cheese, 33 percent into butter, 10 percent into dry whole milk and condensed milk canned milk - this is how the processing structure looks like. it should be noted that at present, Belarus, through its own production, fully meets its domestic needs for milk and its processed products and has significant opportunities for the supply of dairy products to foreign markets. 



DN: What are the prospects for the Belarusian dairy industry now?
As you probably know, the Republican Program for the Development of the Dairy Industry in 2010-2015 is being implemented in the Republic of Belarus. This program provides for a significant increase in milk production in agricultural organizations and, accordingly, an increase in the production of dairy products.  
According to it, in 2015 it is planned to increase milk production to 10 million tons. The number of dairy herds should be 1.6 million heads.  
One of the priority areas for the development of the dairy industry is the further increase in capacity: it is planned to build new dairy farms and reconstruct existing ones.
Thus, this year it is planned to build and put into operation 105 new farms, including the commissioning of start-up complexes. In addition, as part of the implementation of the instructions of the HEAD of State, it is planned to reconstruct and technically re-equip 1.2 thousand farms in the republic at the expense of agricultural organizations' own funds. DN: Will the Belarusian dairy industry keep its current structure? Given global trends, the organizational structure of the industry will be improved. Currently, work is underway to create large milk processing companies. At the first stage, it is planned to create holdings in each region, which will include milk processing organizations and MEAT processing plants. DN: Will processing enterprises develop?



Yes, the further development of the production potential of processing organizations is underway.
In particular, the production capacity of cheeses and powdered milk is being increased: existing ones are being modernized and new ones are being created. Much attention is also paid to measures to ensure the processing of whey. A number of investment projects for its processing have already been implemented in the republic. Capacities have been created for the production of lactulose and dry whey, including demineralized whey (with a degree of demineralization of up to 90 percent). Increased production capacity for whey protein concentrate. 
Currently, more than 50 percent of whey is used for processing. By 2015, whey resources will be fully processed. 
DN: What is the EXPORT potential of dairy products in Belarus?
The potential volume of export of dairy products of the Republic of Belarus by 2015 may increase to 5-5.5 million tons (in terms of milk).
DN: Where do you plan to direct the volume by which exports will increase?
The CES market will remain the main consumer of Belarusian dairy products. We plan to export up to 1 million tons of dairy products to far abroad countries, to such countries as Venezuela, Iran, African countries, and the European Union.
DN: What is the position of Belarus in the world dairy market?
Belarus produces 0.9% of the world's milk and over the past three years has been one of the top five suppliers of milk and dairy products in the world, steadily occupying 4-5% in world trade. 
According to IDF (International Dairy Federation) analytical reports, in the list of the world's leading exporters of dairy products (excluding trade between EU countries), Belarus ranks 5th in the world in the segment of hard and semi-hard cheeses (6% of world exports). In terms of skimmed milk powder, the republic is in 5th position (4%), in terms of whole milk powder - in 7th position. In the structure of global trade, the volume of oil exports from the Republic of Belarus is growing steadily. The country entered the top three and occupies 8% of the global volume of oil exports, ahead of the United States(7%) and Australia (7%). In this segment, Belarus is second only to New Zealand (49%) and the EU (19%).
DN: Who are the main consumers of Belarusian dairy products now?
In the domestic market of our country, about 50% of dairy products are consumed, the remaining 50% are exported. The main trading partners of organizations - exporters of the Ministry of Agriculture and Food are the Russian Federation and Kazakhstan. They account for about 93% of all exports of our enterprises.
According to Belstat, the total Belarusian export of dairy products is about 3.3 million tons (in terms of milk), including about 3 million tons to RUSSIA. DN: Leonid Adamovich, how is it supposed to maintain a balance in the domestic dairy markets of the Customs Union with such a volume of exports?

Our countries annually approve the demand and supply forecasts of the Union State for milk and dairy products, as well as meat and meat products, granulated SUGAR.
Such forecasts allow the ministries of the two countries to carry out joint planning of the production and consumption of dairy products in the common market of the member states of the Customs Union.
I would like to emphasize that when planning the supply of meat and dairy products to the Russian Federation, the Belarusian side proceeds from the need to form and operate a market for these products, taking into account the interests of all its participants. 
DN: What volume has been agreed for this year?
The demand and supply forecasts for 2012 were approved by the Ministries of Agriculture of both countries at a joint meeting of the boards at the end of November last year. Deliveries of milk and dairy products from Belarus to Russia were agreed in the amount of 3,700 thousand tons (in terms of milk, according to the conversion factors of the Russian side), from the Russian Federation to the Republic of Belarus - 41 thousand tons. 
At the same time, it was provided for the distribution of supplies of agreed volumes of dairy products by quarters during 2012, taking into account the seasonal (summer) growth in milk production in order to prevent a significant reduction in prices for dairy products during this period.
DN: To what extent is the prediction correct so far?
If we talk about the fulfillment of this forecast, the situation is as follows. According to the results of 4 months of 2012, dairy products were exported from the Republic of Belarus to Russia in the amount of 1.3 million tons in terms of milk, which is 70% of the supply forecast for the first half of the year.
DN: Leonid Adamovich, could you explain a little about the ban on the import of Belarusian milk and dairy products to Ukraine this spring?
A temporary ban was introduced from March 1, 2012. Several rounds of negotiations were held, the Belarusian side fulfilled the agreements reached - and the situation was resolved.

DN: How was it resolved?
According to the protocol of negotiations between the heads of the state veterinary services of the Republic of Belarus and Ukraine dated May 3, 2012, restrictions were lifted on the supply of Belarusian dairy products to Ukraine to nine milk processing enterprises in Belarus. These are OJSC Rogachev Milk Canning Plant, PUE Mozyr Dairy Products, OJSC Dairy Products (Gomel), OJSC Savushkin Product, OJSC Berezovsky Cheese-Making Plant, SEC Agrokombinat Snov, OJSC Babushkina krynka", JSC "Bellakt", JSC "Shchuchinsky Butter and Cheese Plant".
The veterinary services also agreed on the procedure and conditions for a possible expansion of the list of enterprises that are allowed to supply products of animal origin to Ukraine. Currently, active work is being carried out in this direction.  
In the period from May 30 to June 2, 2012, specialists from the State Veterinary and Phytosanitary Service of Ukraine conducted an audit of the control and supervision system in the production of meat and meat products intended for export to Ukraine, meat processing enterprises of SEC Agrokombinat Snov and OJSC Kalinkovichi Meat Processing Plant.
DN: Did the State Lighting Service of the Republic of Belarus conduct its inspections in parallel?
The State Veterinary Service of the Republic of Belarus additionally inspected OJSC Glubokoe Milk Canning Plant and JV Santa Bremor LLC. They plan to deliver their products to Ukraine. An inspection was made to ensure compliance with the veterinary and sanitary regulations of this country. Forms and letters with guarantees on the fulfillment of the requirements of the veterinary legislation of Ukraine in the field of ensuring the quality and safety of dairy products were sent through diplomatic channels to the Chairman of the State Veterinary and Phytosanitary Service of Ukraine. After reviewing these documents, our Ukrainian colleagues will make a decision to include these enterprises in the lists of those that are allowed to supply products of animal origin to Ukraine.