Margin of safety: expert explains why prices in Belarus are not growing as fast as in Europe

The UN World Food and Agriculture Organization (FAO) has already warned of a threat to global food security. Will our country be able to provide the population with all the necessary products? Let's figure it out with an expert.

- Since the beginning of its sovereign history, Belarus has laid its own production and self-sufficiency as the foundation of national food security, - says Natalya Karpovich, HEAD of the foreign economic activity sector of the State Enterprise "Institute for System Research in the Agroindustrial Complex of the National Academy of Sciences of Belarus" Natalya Karpovich. - Now the country is fully provided with agricultural products and foodstuffs. A significant margin of safety has been formed, which makes quality goods physically and economically accessible for each of us. This is confirmed by experts, including international ones: for example, in the Global Food Security Ranking Belarus is in 22nd place in the European region. I am confident that we will continue to be able to ensure food security at a high level.

- Belarus is quite export-oriented, especially in terms of agricultural products and foodstuffs. Are we trading products with other countries to the detriment of the domestic consumer?

- We have not only ensured food security, but also formed a significant EXPORT potential. In recent years, the sale of products of agricultural enterprises and the food industry to other countries provides about 20% of foreign exchange earnings from all deliveries of goods abroad. Up to 40% of the products produced by Belarusian farmers and food workers are sold on the world market, which is 8-9% of the country's GDP. At the end of last year, exports in this segment amounted to $6.7 billion, and the positive foreign trade balance for the group of agri-food products reached $2.2 billion.

The Belarusian export basket is based on dairy products (about 40%), MEAT (15%), finished products from meat and fish (8%), fats and oils (8%), vegetables and potatoes (5%), meal, cake ( 5%), fruits (3%), etc. The geography of deliveries covers over 110 countries of the world. The main trading partners are the Russian Federation and other states of the EAEU, the CIS countries. Trade relations with the Asian region, especially CHINA, are actively developing.

About 60% of the produced dairy products, about 30% of meat, over 70% of rapeseed oil, more than half of SUGAR, 30% of carrots and beets, about 20% of tomatoes and cucumbers are supplied to foreign markets. Our agro-industrial complex fully provides the domestic food market, and also effectively develops the export supply of excess goods.

- Comment on the decision of the Council of Ministers, which imposes a ban on the export from Belarus of rice, cereals and wholemeal FLOUR from rye or barley, processed cereals, pasta.

- Indeed, a temporary ban has been imposed on the export of these goods in the country. In the context of the Resolution of the Council of Ministers No. 187 "On the introduction of a temporary ban on the export of certain types of goods", adopted on March 28, 2022, I would like to note a few points. Firstly, this is a temporary measure - for three months. Secondly, the decree contains a number of exceptions (for example, its effect does not apply to goods exported from Belarus to the EAEU member states). I believe that this decision will help prevent the formation of a shortage, as well as ensure the country's food security.

- Recently, we have observed some excitement when they grabbed sugar, stew, buckwheat, and everything in a row. How artificial was this sudden demand?

- In my opinion, there are no objective prerequisites for such a stir. Enough food for everyone. And you correctly used the past tense in the question. People have already seen that there is no need to over-purchase. After all, food security has been and remains a priority in our country.

- The world is already stating a rise in prices for many products. And what will we have?

- The price conjuncture of the world market is now subject to fluctuations. But, as I have already noted, there are enough food resources in Belarus to saturate the domestic market with a wide range of goods, primarily of domestic production. If we talk about prices, then government bodies are focused on ensuring the economic accessibility of food for everyone. For example, back in December 2021, the government adjusted the list of socially significant goods, the prices of which are regulated by the state. This regulation applies to 50 items of medicines and 29 items of goods, including flour, pearl barley, bread, beef, pork, chickens, MILK, kefir, sour cream, cottage cheese, some fruits and vegetables, sugar. In addition, in March 2022, the Ministry of Antimonopoly Regulation and Trade by Decree No. 25 extended state regulation of prices for socially significant goods - until June 29, 2022 inclusive.

In Belarus, per capita produce:

900 kg of grain

over 830 kg of milk

over 130 kg of meat

about 520 kg potatoes

about 190 kg of vegetables and melons

80 kg fruit

45 kg vegetable oil

60 kg sugar

Level of self-sufficiency by main food groups:

dairy products - about 256%

sugar - 175%

meat - 135%

eggs - 125%

vegetables - 105%

Belarus is one of the world's leading exporters of meat and dairy products: 7th in animal butter, 9th in cheese and cottage cheese, 8th in skimmed milk powder, 13th in beef, 15th in poultry meat.

Elena ELOVIK,

newspaper.