Transit through Belarus

Russia cuts shortcut dairy

27 February 2018 - Wouter Baan - 3 comments

Russia will apply an import ban on dairy products from Belarus from Tuesday 6 March. With this, the country is showing its main supplier of dairy products the door. The official reason: the quality leaves much to be desired. However, this reason is highly doubted.

The import ban, announced by Rosselkhoznadzor (the Russian phytosanitary service), includes pasteurized milk (concentrate), cream and whey powder. Besides the fact that the dairy products are said to be of poor quality, Russia has doubts about its origin. It is said that imports from Belarus are regularly tampered with.

Kremlin wants to protect its own market

Moscow suspects that European dairy products, which have been banned from Russia since 2014, still enter the country via shortcuts in Belarus. This, in combination with the poor quality, justifies the import ban, according to Russian agriculture minister Alexander Tkachov. Initially, the (temporary) import ban would apply from 26 February; this has now been postponed to Tuesday, March 6, Reuters reported.  

Political reasons
However, the Russian motivation behind the import ban is highly doubted; also by the Russians themselves. For example, Vadim Semikin (milk expert at the agricultural market institute in Moscow) thinks that the import ban is mainly used to protect their own market. For example, Belarus has already cut the export prices of skimmed milk powder twice this year, making Russian dairies no longer able to compete.

The import ban also relates to large dairy volumes. Belarus is by far the most important dairy supplier in Russia. About 79% of imported dairy comes from Belarus. In 2017, Russia imported 295.000 tons of liquid milk products and 125.000 tons of skimmed milk powder. This means that Russia is still one of the largest dairy importers in the world, although the country is being challenged on all agricultural fronts more self-sufficient.

Belarus: a lot of throughput
In the field of liquid milk products, Belarus is the world's largest exporter after the European Union. Indeed, these figures suggest that Belarus mainly transits a lot of dairy products, as the country is not in the top 10 largest producers.

Do you have a tip, suggestion or comment regarding this article? Let us know

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.
Comments
3 comments
Robert 27 February 2018
This is a response to this article:
[url=http://www.boerenbusiness.nl/melk-feed/ artikel/10877703/rusland-snijdt-snelroute-zuivel-af][/url]
According to the New York Times, things are different:

Russia Postpones Ban on Milk and Dairy Products From Belarus-TASS
By REUTERSFEB. 26, 2018, 10:03 AMEST

MOSCOW — Russia has postponed the introduction of temporary restrictions on imports of milk and some dairy products from Belarus to March 6, the TASS news agency reported on Monday, citing Russian agricultural safety watchdog Rosselkhoznadzor.
The watchdog had initially announced that a ban, triggered by food safety concerns, would be in place from Feb. 26.

(Writing by Polina Ivanova; Editing by Katya Golubkova)
Subscriber
Editorial office 27 February 2018
Dear Robert,

Thanks for the tip. We have indeed made that change. It was previously announced that the import ban would be introduced immediately, but that was later reversed to Tuesday, March 6.

Regards,

Kimberly Baker
Editor Boerenbusiness
putin escobar 27 February 2018
Putin needs money again, is running out. He also wants to keep his influential friends as a friend by protecting the domestic market.

And who is the victim again? The Russian Citizen. They will pay much more for scarce dairy products.

Too sad for words, how deep a dictator can sink
Thomas 28 February 2018
Those dairy products will really reach their destination there via a different route, how long are the borders there?
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