Dairy Supply Chain In Belarus: Bottlenecks And The Scope For Improvements

The dairy sector has been playing a visible role in the national economy of the Republic of Belarus. The share of dairy farming in total agricultural output in Belarus was 19% in 2010, and production of raw milk has increased almost by 50% over the last decade, reaching 6.6 mln tons in 2010. The dairy processing industry in Belarus has experienced a tremendous growth by a factor of 2.45 over the last decade. More than a half of the processed raw milk in Belarus is exported, accounting for 5.8% of the country’s total exports in 2010. Moreover, dairy products have been the country’s major agricultural export over the last years, accounting for 48% of total agricultural exports in 2010. Further growth of the sector appears likely due to the bullish outlook for world dairy markets. Russia, - a key Belarus’ trading partner, which has been a destination for over 90% Belarus’ dairy exports, is projected to remain a key and growing importer of cheese and butter in the world. The demand for dairy products is also expected to remain especially strong in the North Africa, Middle East and East Asia - potential markets that are not so demanding in terms of food security and quality standards as those in the EU.