Belarus increases dairy exports to raise funds for Russian gas

Belarusian farms are waiting in hope that the government will increase the milk purchasing price, while peasants can't sell milk from private cows. At the same time, Belarus has made a lot of money selling milk abroad, enough to pay for six months of the Russian gas supplies.

First the internet sources and independent media and then the official press ran reports that Belarus could face the shortage of milk and dairy products. The news broke at the background of the statement by Ivan Karseka, an official from the Ministry of Agriculture, who said that Belarus produced more milk than ever: 3248 kg per cow.

“This year, we have surpassed the best performance of the Soviet times. It would not be right to say that we have a shortage of milk,” Karseka said.

According to the official, the problem with the possible dairy shortage is caused by groceries, because they want to receive milk without early payment.

Ivan Karseka: “Apparently, they want to cheat. They want dairy products to be supplied free of charge and paid for after a certain period of time. Let them order, pay the money and get what they want. There is enough milk in this country now”.

The reason is different. The Ministry of Agriculture has increased dairy exports by 22 percent over the past 9 months, the European Radio for Belarus has learned. The government even wants to sell more by diversifying the markets. People in Iran are soon to start drinking Belarus-made milk, according to Yakau Pustashyla, the chief of foreign trade department at the Ministry of Agriculture.

“The Belarusian milk powder is sold at both the European and Asian exchanges. We are set to start exports to Iran and Azerbaijan. We sell this product to 55 countries. However, Russia remains the main consumer with 69 percent of the market”, Pustashyla said.

It is no wonder that the government tends to increase dairy exports. Belarus has made $900 million selling powder milk abroad over the past 9 months. This sum is enough to pay for six months of the Russian gas supplies. The business is profitable because the world price for milk powder has grown, but the Belarusian government keeps the price it pays to farmers unchanged.

Viktar Barysevich, the director of SNB-Agro farm, says Br506 per one liter if milk his farm is paid by the state-owned Minsk Dairy No 2 does not cover dairy farming costs. He doesn’t believe that the promised increase in purchasing prices will save the situation.

“We want to the milk costs to be raised enough to become profit-making. However, the government will rather increase the price slightly and will make a big noise saying that our requests are met. In the best-case scenario, the costs will grow by 5 percent. I think we can’t expect more”, Barysevich said.

Meanwhile, not all the peasants have an opportunity to sell milk from their private cows, even at the ridiculous price of Br470 per one liter offered by the government. Out of 37 villages on the territory of Yanushki rural county in the Lahoyski district, a milk collector reaches only 18 villages. The rest cannot be covered because it is not profitable, says Piotr Vabishevich, the county chairman.

“The government pays Br70,000 ($35) per one ton of milk collected from households. Out of this money, we deduct salaries to the milk collector and the accountant plus horse maintenance costs and all the taxes. Currently, we pay Br24950 per one ton of milk to the milk collector. Let’s take an example of Village Kramnets. The milk collector there can pick around 700 liters per month which translates into less than Br20,000 ($10). Who is going to work for these peanuts?” Vabishevich asks.

He adds that it is impossible to hire people as milk collectors. Those who still keep working receive an additional pay from the local budget.