OREANDA-NEWS. March 29, 2011. Belarus plans to set up a dairy company with a capacity of 1 million tonnes of milk annually, Agriculture Minister Mikhail Rusy told reporters on Friday.

“We will create the largest company in the country to process 1 million tonnes of milk a year,” the minister said, adding that the company would promote Belarusian produce to foreign markets.

The new company may be created as a holding or close joint-stock company that will incorporate the largest producers Savushkin Produkt and Babushkina Krynka.

Rusy also said Belarus was ready to work with global companies on condition they ensure deep processing of Belarusian milk and exports to third countries.

Commenting on the situation with Danone-Unimilk, the minister said there was progress in talks, and the Russian investor agreed to develop the raw materials zone. Over USD 24 million in investments have been channeled into the Shklov-based dairy farm, Rusy added.

Belarusian President Alexander Lukashenko on February 3 threatened to terminate cooperation with Unimilk if it failed to fulfill its commitments.

“If you fail to perform my instructions in the first quarter, you will no longer work on the Belarusian market,” Lukashenko told senior executives of the French-Russian company Danone-Unimilk.