OREANDA-NEWS. July 8, 2009. Belarus has no plans to sell dairy factories to Russia, Belarusian Agriculture and Food Minister Semyon Shapiro told a press conference in Minsk on 8 July.

“They are property of our state. Any deals to sell Belarusian dairy factories are out of the question,” said the Minister. Yet he remarked that Belarus is interested in attracting foreign investments into the development of dairy factories. “We are open to discussion and invite all investors regardless of what country they come from,” he stressed. “The key thing is that investors should comply with our requirements and invest money in manufacturing”.

The Minister remarked that, in particular, the Pruzhany and Shklov dairy factories are working to attract investors. “Work is in progress. If the Russian company Unimilk, with which they are negotiating, becomes the investor, we will be glad,” he added.

Semyon Shapiro said that Belarus is interested in exchanging packages of shares in dairy factories with Russia. During the visit to Voronezh the head of the Belarusian Agriculture and Food Ministry suggested to the Russian side that they should exchange shares, in particular, shares with the company Molvest that owns nine dairy factories. “It is a normal integration process. It is a profitable way for us to work on the Russian market because at present in our country there are many companies that are co-owned by our colleagues from Russia, for example, Belovezhskiye Syry,” he added.

Belarus will toughen control over antibiotic residue content in Russian cheese. The Minister said that a unique high sensitivity device had been introduced in Belarus to increase the precision of antibiotic residue testing of cheese and dairy products. This device costs about \\$0.5 million. “It will be used to check the level of antibiotic residues in products imported both from Russia and Europe,” he said.

Semyon Shapiro noted that the Federal Service for Veterinary and Phytosanitary Surveillance of Russia had recently restricted cheese imports from 11 Belarusian dairies because antibiotics were found there. “On 1 July I met with the Russian Agriculture Minister and we tried to sort out the situation. We had agreed not to export dry milk to Russia while increasing cheese exports. And all of a sudden Russia suspends the import of Belarusian cheese. How shall we understand this move?” Semyon Shapiro said. The Russian side accommodated Belarus and resumed the operation of the enterprises, within a month they are to settle the issue related to the presence of antibiotic residues in their products.

According to Semyon Shapiro, Belarus allows an insignificant amount of antibiotic residues in dairy products. The same rules are in effect in other countries as well, including the European Union and the United States. “According to the Russian regulations, dairy products should be free of these substances, but will Russian producers be able to measure up to this standard?” Semyon Shapiro asked. “We will check it using our new equipment,” he said.

The Agriculture and Food Minister underlined that in case an insignificant amount of antibiotic residues is found in Russian cheese, Belarus will not close its market for Russian producers. “We just want to show that Russian products can also contain antibiotic residues and their amount should be reduced,” the Minister added.

The responsibility for the problems with Belarusian dairy supplies to Russia rests in large part on heads of Belarusian dairy enterprises, Semyon Shapiro stated. “Rules should be obeyed and government standards should be based on them. However heads of some dairy enterprises did not observe these rules in a proper way. After all, an omission of even one comma can lead to problems. If we want serious cooperation with Russia, we have to be responsible about our duties,” he said.

Semyon Shapiro gave an example. Some dairy companies offered restored milk labeled as cow milk. It is not acceptable and should be punished. “I will ask the government to give me the right to decide how to punish the heads of enterprises who do not fulfill the requirements set by Russian importers,” he said.

The Minister informed that the Belarusian side and head of the Russian Federal Consumer Protection Service Gennady Onishchenko coordinated a schedule to supply samples of Belarusian dairy products to Russian where the relevant tests will be carried out. As of 2 July, 550 samples were sent to Russia, 102 findings have already been issued. Under the protocol signed by Russia and Belarus, Belarusian enterprises will have to apply to Russian standardization bodies to receive certificates of conformity. “We have already received such certificates for 78 products. It is encouraging,” the Minister concluded. He reminded that up till 1 August Belarus will export dairy products to Russia using old papers. At present, the relevant tests are carried out at nine laboratories of Russia.

“When we recalculated the old and new values of Belarus’ dairy supplies to Russia, it turned out that the annual value will increase by Br130 billion,” said the Minister. He reminded that the balance of supplies had been revised together with the Russian side. According to the new plans Belarus will ship less milk powder. In Q2 and Q3 2009 the supplies are suspended while in Q4 2009 Belarus plans to export up to 15,000 tonnes of milk powder to Russia. “We will regulate supplies of these products in a routinely matter in order to avoid disrupting the operation of Russian producers,” noted Semyon Shapiro.

Meanwhile, Belarus will increase cheese export to Russia up to 15,000 tonnes. Russia has also increased Belarus’ quota on whole milk deliveries. The corrections of dairy exports to Russia suit Belarus. “We fulfil our task of increasing export,” stressed the Minister.

Semyon Shapiro remarked that Belarus had earlier sold milk powder to Russia at a loss. “We bought whole milk from peasants at Br600, dried it up and sold at Br500. We operated in the red but the products were popular with Russian producers,” said the Minister. He remarked that “at present in many regions of Russia the livestock population is falling and tomorrow the Russian market will need our milk powder, we have no doubt”.