BELARUS: JV with Russia to begin export to third countries
Published: 08/30/2012, 9:35:35 AM
Belarusian and Russian sugar manufacturers plan to set up a joint venture to export sugar to third countries, Ivan Danchenko, Chairman of the Belarusian state food industry concern Belgospishcheprom, told media on 29 August, according to the Belarusian Telegraph Agency.
Belarus and Russia fully supply themselves with sugar. Excess sugar supply is estimated at 300,000 metric tonnes. The excessive sugar puts pressure on the market and drives prices down, said Ivan Danchenko. "The idea is we can set up a joint export company together with the Russians in order to sell the excessive sugar outside the Customs Union to make sugar business profitable," he said.
Now the sides are discussing the possibility of doing it. Experts believe that Belarus and Russia could team up to sell sugar in Central Asia, to penetrate the markets of Iran and Afghanistan. The product can be supplied to some European countries.
Ivan Danchenko remarked that this year Belarus is expected to harvest 4.3 million tonnes of beet. The figure can be used to make 600,000 tonnes of beet sugar, 50% more than Belarus needs. The potential is good for export, said the official. Sugar refineries are ready to handle the harvest.
This year Belarusian sugar export went up 23% in real terms. Meanwhile, proceeds are as good as last year's if calculated in foreign currency. The market export destinations for Belarusian beet sugar are Russia, Kazakhstan, and Central Asia.
The official reminded that three Customs Union countries had created an association of sugar manufacturers. The association works hard to ensure effective operation of the industry.