BUCE predicts further growth in export quotations for dairy products

June 25, Minsk. The Belarusian Universal Commodity Exchange predicts further growth in export quotations for dairy products, BUCE press secretary Roman Yaniv told a BelTA correspondent.

According to BUCE analysts, in the near future we can expect further growth in prices for dairy products sold at export exchange auctions. This will be facilitated by a favorable situation in foreign markets and a high concentration of foreign buyers on the stock exchange.

Export quotations for the main types of dairy products show a positive trend throughout 2021. "In particular, the cost of butter and skimmed milk powder at exchange trading increased in the range of 5-10%, and, apparently, this is not the limit. The main reason for this trend was the growth in world prices, due to a decrease in production volumes due to adverse weather conditions in the EU and Oceania, as well as a high level of demand in China, which has begun to recover from the negative consequences of the pandemic faster than other Asian countries.All this time, Belarusian exporters have been actively using the exchange mechanism of sales. desire to maximize revenue through the competitive environment created at the auction,” said Roman Yaniv.

An important role was also played by the presence of an optimal level of product residues in the warehouses of domestic dairies, which made it possible to put up lots of larger volumes for auction. If last year Belarusian enterprises preferred over-the-counter schemes, then this year, following the results of 5 months, the amount of transactions for the sale of powdered milk for export increased by 5.3 times, and butter - by 39 times.

"Given the stable demand in key sales markets and the activity of buyers at the auction, it is highly likely that the upward price trend will continue in the near future. At the same time, the impact of risks associated with the ongoing pandemic cannot be ruled out, which may increase the level of volatility in the Belarusian exchange market", - say BUCE analysts.

JSC "Belarusian Universal Commodity Exchange" was established in 2004. The first auction took place in June 2005. BUCE is one of the largest commodity exchanges in Eastern Europe. The main function of the exchange is to assist Belarusian enterprises in exporting products and to help foreign companies enter the Belarusian market. The exchange sells metal, timber, agricultural products, industrial and consumer goods of a wide range.