The Development Programme for the Dairy Industry for 2010-2015 has been approved in Belarus

23 November, Minsk /Tatsiana Chumakova - BELTA/. A national programme for the development of the dairy industry in 2010-2015 has been approved in Belarus. The relevant decision is contained in Resolution No. 1678 of the Council of Ministers, the Council of Ministers' Office informed BELTA.

"The programme's goal is to increase gross milk production to 10 million tonnes by 2015," noted Vasily Sedin, Deputy Minister of Agriculture and Food - Director of the Grain Products Department, commenting on the resolution. Last year, Belarus produced about 5.6 million tonnes of milk. The bulk of the additional milk volumes to be obtained during the programme's implementation is planned to be supplied for export in the form of dairy products.

The Deputy Minister stressed that the programme is aimed at increasing the economic efficiency of the dairy industry. The task is to enhance product competitiveness. "Belarus has many farms operating in old, adapted premises, so the construction of new dairy farms using modern technologies, as well as the reconstruction of existing ones, is planned," he said. In 2009-2010, 118 dairy farms were built and commissioned.

According to the resolution, it is planned to invest Br33 trillion 792.1 billion in the programme's implementation, including Br25 trillion 46 billion in the construction of farms. The remaining funds will be used for the reconstruction and modernisation of farms, premises for keeping young cattle, as well as for the construction, reconstruction and modernisation of milk processing organisations. To finance the programme, it is planned to attract bank credit resources, including funds from foreign credit lines.

The dairy industry of Belarus faces the task of increasing the number of cows to 1.6 million heads by 2015 (a 21% increase compared to 2010). Supplies of dairy raw materials to processing organisations will increase to 9 million tonnes (by 74.7%). It is planned to reduce the seasonality of milk production and its supply to processing enterprises. Fluctuations between minimum and maximum monthly production in 2015 should not exceed 20%.

It is planned to build 875 dairy farms. During the construction, reconstruction and modernisation of farms, it is envisaged that they will be equipped with domestic equipment. Over the course of the programme implementation, farms will be supplied with over 800 milking parlours. It is planned to purchase imported equipment for milk processing organisations worth 325 million euros.

In 2015, milk processing capacities are projected to reach 9.2 million tons per year, including 203 thousand tons for cheese production, 180 thousand tons for butter, 300 thousand tons for dry milk products (full-fat and skimmed milk powder, dry whey), and 2 million tons of whole milk products (in milk equivalent), including 43 thousand tons of products for baby food. Milk production efficiency on farms will be achieved by reducing labor costs by 2.2 times, increasing labor productivity by 2.1 times, cutting feed costs by 8.7%, and improving milk quality. As a result, the domestic market for dairy products will be fully satisfied by domestic production. In 2015, 41% of dairy products are planned to be sold on the domestic market, and 59% to be exported. Export volumes in financial terms will increase to $2.65 billion (compared to $1 billion in 2009). The payback period for investments in the construction of dairy farms averages 18 years. The estimated payback period for investments in the processing industry is about 4-5 years. In accordance with the concept for the development of dairy cattle breeding for 2015-2020, as outlined in the program, it is planned to increase the annual milk production volume in agricultural and other organizations (their branches) to 12.5 million tons by 2020. The average milk yield per cow in the republic will be 7 thousand kg, which is 850 kg more than the planned level for 2015. The number of dairy cows by the end of 2020 will be stabilized at 1.6-1.7 million head. Milk production in 2020 will increase by 25% compared to the planned level for 2015. -0-

BELTA