Belarus cuts minimum export price for milk products sold to Russia
Belarus lowered the minimum price for certain concentrated and dried milk and cream exports to Russia from 350 to 340 Russian rubles per kg. Prices for shipments to other foreign markets remain unchanged.
New price floor takes effect
Belarus has reduced the state-mandated minimum price for exports to Russia of certain concentrated and dried milk and cream products, according to Kommersant. The change was introduced by the Belarusian Ministry of Agriculture and Food through a resolution published on the country’s National Legal Internet Portal. The document entered into force on 21 July.
The minimum export price is now 340 Russian rubles per kg, down from 350 rubles per kg. The reduction amounts to 10 rubles per kg, or about 2.9%. The rule covers milk and cream that are concentrated, powdered, granulated or presented in another solid form, provided they contain more than 1.5% fat and have no added sugar or other sweeteners.
Adjustment limited to the Russian market
The ministry did not change the minimum prices applying to exports of dairy products to foreign markets other than Russia. The decision therefore alters the commercial terms of one specific bilateral market rather than introducing a general reduction across Belarusian dairy exports.
For Belarusian producers and exporters, the lower floor provides additional room to negotiate contracts with Russian buyers. Companies can offer eligible products at prices below the previous threshold, although they cannot sell below the new level of 340 rubles per kg. The practical effect will depend on market prices, contract structures and demand from Russian processors, distributors and other buyers.
For Russian importers, the adjustment can reduce the minimum permitted purchase cost by 10 rubles per kg before logistics and other expenses. The measure applies only to the product categories defined in the resolution, so it should not be interpreted as a price change for all Belarusian milk or dairy shipments. The source material does not provide export volumes, contract values or an estimate of the measure’s effect on wholesale prices.
Trade procedures are also changing
The price revision comes after Russia launched its national system for confirming expected goods, known by its Russian abbreviation SPOT, on 1 June. Importers supplying products from Armenia, Belarus, Kazakhstan and Kyrgyzstan must now submit electronic notifications in advance. The requirement adds a new administrative step for goods moving from other members of the Eurasian Economic Union into Russia.
Importers from EAEU countries have temporarily been exempted from the security advance payment associated with the system. For goods entering through Belarus, the transition period will continue until 31 October this year, Kommersant reported. Belarusian President Alexander Lukashenko had expressed concern that the launch of the system could complicate trade between the countries. Dairy traders must consequently assess the benefit of the lower price floor alongside the notification requirements and the approaching end of the temporary payment exemption.
