Belarus reach records in milk production, but for today the main problem is where to sell surpluses and to be profitably.
According to Belstat, in January-May 2015, 2,607,000 t of milk were produced, which was 6.8% more than a year ago, and 2,437,000 t were delivered for processing (+8.4%). As of June 1 the number of cows was at 1.4 mio heads (+0.6%).
Stocks are traditionally high for this period. It is possible to sell them only to the neighboring country. But Russian traders do not hurry to buy up the Belarusian products. Supply is available in Russia and demand for dairy products is not good.
On purpose to limit the competition, the skirmishes occur concerning quality of the products. Not so long ago the Federal Service for Veterinary and Phytosanitary Surveillance Rosselkhoznadzor, according to the request of Ministry of Agriculture and Food of Belarus, banned deliveries to Belarus from Russian plants, products of which do not satisfy the requirements of safety. At the same time, the Rosselkhoznadzor threatened to forbid import from a number of big Belarusian companies, products of which are systematically exported with violations.
But much as the countries limit, their dairy branches will not survive without each other (as for today).
While the prices are at minimum level in Russia, the operators may continue stockpiling (Belarusian products as well) for winter. The extension of food embargo also will calm the Belarusian operators, as Latin America will hardly make the essential competition this winter (Russian importers incurred too big losses in trade with alternative to Europe countries).