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Belarus cut prices on exports in swine meat, milk and butter

CES
17:46 | 20.11.2012 | Business-News
The Belarusian agro-industry could face serious risks due to increased supplies of cheaper products from third countries to the market of the Customs Union after Russia's accession to the WTO. Official data shows that in September Belarus reduced exports of Live swine by 43%, of Meat of swine, fresh, chilled or frozen – by 27%, Milk and cream, concentrated or sweetened – by 32%, Butter and other fats and oils derived from milk – by 29%.

The deficit in exports of live swine was 561 tons at USD 1 469 thsd.  in September, according to the National Statistical Committee. The exports were 981 tons at USD 2 585 thsd. in August 2012.

 

In September exports of meat of swine, fresh, chilled or frozen fell to 5 607 tons from 7 823 tons compared to August in physical terms and to USD 19 830 thsd. from USD 27 035 thsd. in value terms.

 

The exports of milk and cream, concentrated or sweetened fell to 16 900 tons (compared with 25 382 tons in August) in physical terms and to USD 48 567 thsd. from USD 71 588 thsd. in value terms in September.

 

The exports of butter and other fats and oils derived from milk was reduced to 5 301 tons from 8 246 tons in physical terms and to USD 21 868 thsd. from UDD 30 729 thsd. in value terms.

 

New export duties on agro-industry products are applied for the Customs Union countries since Russia's accession to the WTO (August 22, 2012).

 

The export duty on live swine was reduced to 5% but not more than EUR 0.5 per 1 kg from 40%.

 

The export duty on swine carcasses and half carcasses, fresh or chilled was reduced to 0% but not more than EUR 0.25 per 1 kg from 15%.

 

The export duty on milk and cream, concentrated or sweetened was reduced to 20% from 25%.

 

The export duty on butter not exceeding 85% fat was reduced to 15% but not less than EUR 0.29 per 1 kg from 15% but not less than EUR 0.4 per kg.

 

The Belarusian Ministry of Trade considers that the September reduction in exports of milk and meat products is not directly connected with the Russia's accession to the WTO and decrease of duties on imported products.

 

Commenting on the situation for BUSINESS NEWS the Deputy Minister of Trade Edvard Matulis supposed the decline in exports was caused by seasonal factors and also pointed out that Belarusian manufacturers carry out diversification of exports, increase deliveries to the markets of South-East Asia and South America.

 

Official data for January-September 2012 shows that exports of Belarusian meat of swine, of milk and cream, concentrated or sweetened and of butter and other fats and oils derived from milk to the Russian market  are 99.5%,  83.7% and  90.2% of all exports  of meat of swine, milk products and butter respectively .

 

Thus, Russia’s remains the essential export market for the Belarusian exports of agro-industry products. The Belarusian agro-industry could face serious risks due to increased supplies of cheaper products from third countries to the market of the Customs Union.

 

RBK daily reported on the negative impact of WTO for the Russian agro-industry sector. According to the edition, the price of live swine fell by 15% at the Russian wholesale market in September. Last years the traditional seasonal price reduction was in the 5-7% range.

 

Edvard Matulis considers that it is too early to conclude how Russia's accession to the WTO will influence the Belarusian market. "The Russian Federation is not only interested in opening of its own market but in protection of its own manufacturers", Matulis noted. “The interest of both countries coincide in some aspects”, the source said. 

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