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14 Oct 2020

Belarus’ dairy export might reach $4bn by 2030

Belarus’ dairy export might reach $4bn by 2030
Aleksei Bogdanov. An archive photo

MINSK, 14 October (BelTA) – The export of Belarusian dairy products might approach $4 billion by 2030, Aleksei Bogdanov, Head of the Central Office for Foreign Economic Activities of the Belarusian Agriculture and Food Ministry, told the media at the 6th export forum dedicated to the Belarusian diary industry on 14 October, BelTA has learned.

“Over the past five years, the export of dairy products has grown by 34%, or by $600 million. In 2019, it amounted to $2.3 billion (up 15% year-on-year). Dairy products were shipped to 58 countries. It was an absolute record for us. Taking into account plans to increase milk output in the country (up to 9.2 million tonnes by 2025 and up to 10.5 million tonnes by 2030), the export of dairy products, according to our estimates, will also grow. It is expected to reach $3.1 billion by 2025 and to approach $4 billion by 2030,” Aleksei Bogdanov said.

According to him, 60% of Belarusian dairy products are sold abroad, while almost all the skimmed milk powder and whole milk powder are exported. Belarus also exports 83.5% of cheese and 68% of butter.

“Russia remains Belarus’ main market due to strong trade and economic ties, convenient logistics, the absence of customs barriers, and popularity of Belarusian dairy products among Russian consumers. However, the situation is changing. Russia is actively promoting its own dairy industry and is increasing the output of milk and dairy products. We are fully aware that the competition on the market of the Union State is getting tougher, therefore we are working to diversify export supplies and to gradually redirect commodity flows to other sales markets. Since 2015, the share of exports to the Russian market has decreased by 12.2 percentage points”, he said.

Supplies to the CIS countries are growing, especially to Kazakhstan, Kyrgyzstan and Azerbaijan. The share of exports to non-CIS countries increased from 0.3% in 2015 to 6.1% in 2020. Fifty-six Belarusian dairy processing companies are accredited to ship their products to China. The export of Belarusian dairy products to this country has grown tenfold over the past five years.

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