Market trends

News last update:16 Nov 2020

Belarus: Dairy exports expected to double

Belarus dairy export is expected to grow from $2.1 billion in 2019 to $4 billion in 2030 on the background of strong sales diversification on the global market, the country's Agricultural and Food Ministry forecasted.

In 2025, Belarus dairy export is projected to climb to $ 3.1 billion, the head of the Ministry's foreign economic activity department Alexei Bogdanov said during the Belarus Dairy Forum in Minsk last week.

"In the light of plans to increase milk production in the republic, dairy product exports, according to our calculations, will also grow and reach $ 3.1 billion in 2025, and will approach the figure of $4 billion by 2030," Bogdanov said.

Photo: Shutterstock
Photo: Shutterstock

Belarus is currently the world's biggest dairy exporter per capita – there are targets to ramp up the domestic milk production to 9.2 million tonnes in 2025 and 10.5 million tonnes in 2030.

In January-August, the country's dairy export amounted to $ 1.6 billion, 7.2% up compared to the same period of the previous year. "In total, dairy export reached 3.2 million tonnes in milk equivalent," Bogdanov said.

A good year

2020 remains a relatively good year for the Belarus dairy export, despite the coronavirus and some increase in dairy production in some other countries. With this backdrop, Belarus dairy companies managed to increase the export of new categories of products.

"For instance, this year, the share of whole milk products [in export supplies] has doubled - from 7.6% to 16%, which is very important, since we target to export products with high added value and a high degree of processing," said Bogdanov.

During the Belarus Dairy Forum, the country's officials have said nothing on whether the continuing political turmoil and the nationwide strike has affected the dairy industry's operation.

Sales diversification

"In terms of sales markets, Russia remains the dominant partner due to established long-term trade and economic relations, convenient logistics, and the absence of trade barriers," Bogdanov said, adding that Russian dairy production is rising and Belarus has set its sights on new markets.

"Between 2015 and 2020, the share of the Russian market decreased by 12.2% - from almost 97% to 85%," Bogdanov said.

In earlier statements, Belarus Agricultural Ministry declared plans to boost dairy export to Asia and Africa, the regions where the demand for dairy products has been seen strongly growing during the past several years.

So far, most products from Belarus end up in post-Soviet countries. In the first month of 2020, the export of dairy products to the CIS countries, except Russia, climbed to $153.4 million, adding 33.4% to the last year's level, Bogdanov stated. Cheese is the main export item, accounting for 42.5% of all export supplies.