State of affairs in sugar, confectionery and brewing industries discussed at Palace of Independence

11 августа 2020
Businesses are regularly provided with state support. The factory executives reported on the results of their work. Personnel changes in these industries occurred at the end of last year. The situation with staffing, issues of rapeseed processing and sales markets were discussed. 

Agriculture issues are often discussed in the Palace of Independence. The focus is on the food industry today. The interests of people and the stability of the Belarusian economy were stressed. Production, saving jobs, increasing exports were discussed. The key decisions have been made for each industry.

The most urgent points of the current situation in a wide format were touched upon. Among the participants of the meeting there are representatives of the government and administration, heads of specialized concerns, and heads of enterprises. They have been working in very difficult conditions over the past 6 months. 

Alexander Lukashenko, President of the Republic of Belarus: "We were able to save jobs and export potential. The processing system wasn’t affected by the coronavirus. We had plenty of raw materials. The peasants are working as well as ever, producing  meat, milk, sugar, and so on. All countries have closed and their economy has stopped - we are working. Go ahead and sell. Markets are open, you just need to move."

The exports have already added 5% in six months. 18 new markets opened. The total sales geography includes almost 60 countries.

Slutsk Sugar Plant signed a contract for the supply of 10 000 tons of sugar to China. More than half of the order has already arrived. We intend to continue our cooperation. Belarus expects to open a trade representative office of the Belgospishcheprom concern in China. 

Vitaly Markovets, Deputy Director for Commercial Affairs of Slutsk Sugar Plant: "There was overproduction in Russia, and this is the main market for Belarusian sugar factories. Slutsk Sugar Plant supplied 9 countries last year, and at the beginning of 2020, we were working to expand our sales markets. And at the moment, we supply sugar to 19 countries."

According to farmers ' forecasts, there will be a large harvest of crop beets in 2020.

Vitaly Markovets, Deputy Director for Commercial Affairs of Slutsk Sugar Plant: "The enterprise worked, did not introduce the quarantine regime. We managed to solve this problem. People were at work, people were happy to go to work, they were paid."

The state supports the domestic industry financially and reduced credit rates. It allowed the industry to extend the deferred payments for three plants: in Skidel, Gorodeya and Zhabinka.

The main task set by the President is to reduce the cost of production. This will increase the efficiency of the industry and ensure a competitive price for Belarusian sugar.

Anatoly Buben, Chairman of the concern "Belgospishcheprom": "The cost of one ton of sugar at domestic  enterprises has reached the level of $350, as compared to $500 last season. This was achieved at the expense of internal reserves, reduced costs and support from the state. We purchased beets at Br70 per ton in 2018. The state provided supported the agricultural producer. Now we are buying at Br55 per ton on a state order from the manufacturer."

Sugar makes a large part of the cost for confectionery. The saved money is expected to be used for modernization. Modern production means less costs. The agenda is to combine confectionery factories into a holding company.

The idea was supported by the President, but technically the formation of the holding is not an easy process. Competition in the market is tough, and the world is unlikely to consume more sugar. It is difficult for plants to stay afloat alone.

Therefore, Alexander Lukashenko suggested to establish the union of confectioners. 

The harvesting campaign is always under special control of the President.

The overall development of our agriculture depends on the harvest. And our brewing industry is provided by half with Belarusian barley. The President set a task to provide brewers with Belarusian raw materials.

Although, it’ s harder to cultivate in our country, but it’s worth it. It is equally important to work together with the population - the farmsteads also have high yields this year.

"Recycle everything to a milligram. There should be no losses," the President stressed. He also drew attention to the fact that the population also has a good harvest. "This is a good help. If the population cultivates agricultural products on their homesteads, we must buy from people," the Head of the State set the task.  The surplus agricultural products should be purchased from the population."

A significant increase in prices, including for vegetables and fruits is not expected. 

Vladimir Koltovich, Minister of Antimonopoly Regulation and Trade of Belarus: "The growth rate in the free price market, where there are unregulated positions, was 3.7 %, and 2.4 % for the regulated positions. We have reached record low prices for socially important goods this year, thanks to these measures."

If the economy does not work at full capacity, prices will continue to be regulated next year.