Purchase prices for milk in Belarus will increase by an average of 10%
11/08/20100 views
On August 11, Minsk / Tatyana Chumakova - BELTA /. Purchase prices for milk in Belarus will increase by an average of 10%. This decision is contained in the Resolution of the Council of Ministers No. 1177 of August 9, 2010, BELTA was informed by the Office of the Council of Ministers. Based on the document, relevant amendments have been made to the government's Resolution No. 812 "On Purchase Prices for Livestock Products Sold for Republican State Needs" of June 5, 2008.
The purchase price for "Extra" grade milk will increase from Br1000 to Br1100 per 1 kg, for top-grade milk - from Br865 to Br950, and for first-grade milk - from Br795 to Br875.
As reported to BELTA correspondent by the Ministry of Agriculture and Food, the adoption of the resolution will increase the profitability of milk production to 15%, and agricultural organizations will receive about Br200 billion in additional revenue in August-December 2010, which will be used for the purchase of mineral fertilizers, fuel and lubricants, as well as for wage increases.
"Compensation for the increased cost of raw materials for milk processing organizations will be carried out by a phased increase in selling prices within the projected inflation parameters, which, along with export earnings, will ensure profitable operation of the dairy industry at the level of 2-3%," the Ministry of Agriculture and Food emphasized.
In June of this year, prices for dairy products supplied for export remained stable, and from mid-July, they began to rise. In the last week of July alone, export prices for the main dairy products increased by an average of $200 per ton. As a result, world market prices, despite the increase in purchase prices for milk in March and June 2010 by 10% each, allow processing organizations to generate significant profits for a number of products. Thus, the profitability of cheese and whole milk powder exceeded 20%, casein - 35%, and skimmed milk powder is about 70%. Selling prices for socially significant dairy products sold in the republic, with their increases in April and May 2010 by 2% each and in July by 3%, mainly ensure their break-even production.
At the same time, with the increase in prices for material resources used for agricultural production, agricultural organizations are experiencing an acute shortage of funds for the purchase of mineral fertilizers, fuel and lubricants, and wage increases.
According to operational data, for January-June 2010, the milk processing industry generated Br383.8 billion in sales revenue and Br246 billion in net profit. The profitability rate of sold dairy products was 11.3%.
"Considering the stable financial situation of milk processing organizations and the absence of seasonal price reductions on the external market for dairy products, a draft resolution of the Council of Ministers of the Republic of Belarus to increase milk purchase prices by 10% was submitted for approval," explained the Ministry of Agriculture and Food.
The resolution will come into force after its official publication.-0-
BELTA