Belarusian Companies Have Right to Supply Dairy Products to EU

April 22, 2016 18:13

From July 1 2012, four Belarusian companies (OJSC Verkhnedvinsk Butter-cheese Plant, Joint Venture Santa Braemar, OJSC Bereza cheese-making plant and JSC Savushkin Product) have been granted the right to supply the EU with raw milk and finished dairy products. This will allow the supply of Belarusian dairy products to the EU market to increase, as well as alleviate competition concerns on the Russian dairy market.

In June, the European Union’s Standing Committee on the Food Chain and Animal Health granted its approval for access of raw milk and dairy products from Belarus to the European market and provided four Belarusian companies with export licenses. These are OJSC Verkhnedvinsk Butter-cheese Plant, Joint Venture Santa Braemar, OJSC Bereza cheese-making plant and JSC Savushkin Product (see Table 2).

Table 2

Belarusian dairy companies – holders of EU’s export licenses

№№

Company

Revenue in 2011,
USD, millions.

Average number of employees, people

Government’s stake, %

1

Savushkin Product

244,8

2379

2

OJSC Bereza cheese-making plant

104,7

1500

3

OJSC Verkhnedvinsk Butter-cheese Plant

24,9

278

4

Joint Venture Santa Braemar

1

4000

1 – Apart from fish products, JV Santa Braemar also produces ice cream. Figures for ice cream sales are not made public.

 

In 2009-2011, these enterprises have undergone several rigorous inspections by European experts, which attested their compliance with EU regulations on food safety.

Access of the Belarusian dairy companies to the EU market will diversify sales markets and also alleviate competition concerns on the Russian dairy market.

In June, during a meeting with Russian Vice President Dmitry Medvedev, a board member of the Russian Milk Anderi Danilnko said that Russia’s dairy producers are at a disadvantaged position while competing with the Belarusian producers. According to him, “more systematic actions within the Customs Union are required, since we, as a matter of fact, compete not with the Belarusian companies, but with a state machine that does not operate in compliance with market rules”. 

For reference. According to the National Statistics Committee of Belarus, in January-April 2012 exports of Belarusian milk and dairy products reached a sum of USD 531.5 million. The deliveries were made to Russia, Ukraine, Kazakhstan, Armenia, Azerbaijan, Turkmenistan, Uzbekistan, Moldova, Venezuela, Georgia, USA, Canada, Jordan, United Arab Emirates, China, Vietnam, Taiwan, Philippines and Pakistan.