OREANDA-NEWS. February 18, 2009. Purchasing prices for agricultural products will not be raised in Belarus, said President of Belarus Alexander Lukashenko during his working trip to the Mogilev oblast on February 17.

Ways to decrease prime costs should be sought, stressed the head of state.

“Today we see a kind of bottom prices for our products,” said the President. “It means it is impossible to reduce prices anymore”. Alexander Lukashenko added: “The market has already found the lowest equilibrium point and at this point stands the purchasing price that we offer to agricultural companies for milk now — up to 25% profitability. It is very good profitability”.

The head of state underscored, the refusal to increase purchasing prices is a well-warranted demand. “The milk is not loss-making. If the purchasing price is raised even more, it will bring down processing companies,” explained the President.

“Hydrocarbon resources and fertilisers are now cheaper. The fact should be used to decrease the prime cost,” stressed Alexander Lukashenko. “Even if we discount the cheaper prices, our agricultural companies still have a lot of issues regarding labour organisation. They can be fixed to decrease expenses, which will allow reducing the prime cost and benefiting from better profitability”.