A. Lukashenko: When attracting investors to the dairy processing industry, the interests of the state must be primarily observed

24 February, Minsk /Vladimir Matveev - BELTA/. When attracting investors to the dairy processing industry of Belarus, it is necessary, first and foremost, to observe the interests of the state and the people. This was stated by the President of Belarus Alexander Lukashenko today at a meeting on the formation of large dairy processing enterprises (holdings), as reported by a BELTA correspondent. As the head of state noted, there have been many discussions recently about partnership between private entities and the state. "Unfortunately, many interpret this thesis too one-sidedly and simplistically – everything is reduced to the privatization of production facilities and, in essence, the ousting of the state from the economy. Such an approach cannot be called optimal and balanced, especially when it comes to areas that affect the interests of all segments of the population and have strategic and social significance," emphasized Alexander Lukashenko. According to him, many factors indicate the importance of the dairy processing industry for the state. Firstly, almost all agricultural organizations in all regions of the country work for it. Secondly, the industry produces large volumes of socially significant products and largely ensures the country's food security. "That is, dairy processing plants produce not only high-value products. When privatizing these enterprises, what is the guarantee that a private entity will take the same care in producing socially significant products?" the Belarusian leader remarked. Thirdly, he continued, the industry's products are in demand in foreign markets, bringing tangible income to enterprises and currency to the state. Belarus is among the top five global suppliers of dairy products. "Hence, perhaps, the great interest of private investors in our dairy processing industry, as well as the meat processing industry," the President said.

He stated that Belarus has sufficiently developed raw material zones. The high quality of milk and stable demand for Belarusian products make this sector attractive to many investors, both domestic and foreign. Here, as the Head of State noted, the positive and negative trends of this process are particularly evident, which requires the close attention of government and management bodies. "We need to bring full clarity to these issues and take effective measures. At today's meeting, we will comprehensively and thoughtfully discuss the issues of limits and conditions for the admission of private capital (domestic and foreign) into the country's milk processing industry," said Alexander Lukashenko. The President recalled that this issue had been discussed more than once. "We even tried to let individual investors into this sphere (Brest and Mogilev regions). It even reached the French "Dannon". We saw how they behave. They all want to buy milk cheaper from agricultural enterprises, produce the most significant products with little money spent on it, and sell it more expensively, not matter where, including in Russia," said the Head of State. "Where does the profit remain? With the milk processors who came to us. Do we need this?" "And moreover, we saw how they invest. They did not come to us and bring a portfolio of money. They are ready to invest, if at all, at the expense of the profit they will earn from us. Possibly, at the expense of loans they will take from us, not from outside. The question arises: why can't we do the same, who is stopping the state from working exactly like this?" the Head of State posed the question. At the same time, he noted that Belarus already has experience in creating large milk processing enterprises, and this work is being carried out in various regions. "Why not make them work like private businesses, more profitably? Then there will be no fear that we will make a mistake somewhere. We will create a company, and if the question arises, we will easily sell them. But it will be a powerful company, and we will sell it not for $1.5 million or $5 million, as they offer us, but for $500 million," noted Alexander Lukashenko. According to him, it is necessary to continue modernizing the milk processing industry, possibly consolidating enterprises (currently there are 43). "Maybe there will be ten, time will tell. We cannot artificially create large companies," believes the Belarusian leader."If someone wants to buy a raw material zone with a dairy processing enterprise from us and offers us a lot of money, then, fine, let's consider this issue. But I don't see such offers. Nobody is posing the question like that. Everyone wants to get something from a well-functioning industry, that's understandable. But it is the Belarusian state and people who should primarily benefit. This is what we should proceed from," Alexander Lukashenko emphasized. According to him, it is necessary to define the main approaches in this matter, including in a regional context, and to develop a complete and understandable mechanism for the formation of such companies, primarily taking into account the interests of the state. Corresponding instructions were given to the government and regional executive committees. The head of state demanded a report on how they are being implemented at a meeting. He also emphasized the personal responsibility of the Minister of Agriculture and Food for the development of the dairy processing industry, including in the matter of attracting investors. "The main inspector here is the minister and the ministry. He must safeguard the interests of the state. The main thing is that the enterprise operates efficiently, with profit and profitability. And if a state enterprise operates like this, it is a blessing. The main thing is that it is beneficial to the people," the President of Belarus summarized. -0-

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