Chinese DRex Food and Xinrongji Holding may invest $ 1 billion in agriculture of Belarus

imageMinistry of Agriculture and Food of Belarus has signed the Protocol of Cooperation with Chinese DRex Food Group and Xinrongji Holding Group which provides for investment in agriculture of the Republic approximately $1 billion, reports the Interfax-West.

Leonid Zayats, Minister of Agriculture and Food of Belarus, says that under these arrangements the Chinese side will soon register in Belarus a joint venture, which will export the Belarusian agricultural products and foodstuffs to China with a monthly cost of about $10 million. “But this is just the beginning. I think that this amount will not be the limit for our export volumes. They will definitely increase, because we are able to offer China a wide range of products,”- said the Minister.

In addition, the joint venture company in the future will be empowered to buying stakes in Belarusian dairy enterprises to modernize their production and expand the range of products.
In addition, continued L. Zayats, the Chinese side is planning to create the enterprise producing packaging. The production will be based on potato and corn as raw materials. “It will be import substitution and export product that will replace plastic packaging,” – said the Minister.

According to L. Zayats, Chinese companies also intend to develop milk production in Belarus, taking on lease 20 thousand hectares of land to build commercial dairy complexes with a total of 40 thousand livestock. “We are considering Mohylyov, Klymovytsky and Chausky areas for this”, – said the Head of the Ministry of Agriculture.

“In addition, they expressed desire to examine the feasibility of investing in our processing plants “Zdravushka Milk” and “Orsha meat-packing plant “, – said the Minister.

All parties agreed to implement the plan in the current year, said L. Zayats. Being asked about the investment, L. Zayats said: “China has been denoted total investment of $1 billion.” At the same time he admitted that in the future the investment can be increased.



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