New companies with foreign shares to be set up in Belarusian farm sector


New companies with foreign shares will be set up in the agribusiness industry of Belarus, Deputy Prime Minister Valery Ivanov told reporters. 

“Our legislation allows creation of any organizations which develop raw materials base, process products and can sell the output both in Belarus and abroad,” Valery Ivanov said.

The creation of joint companies is one of structural transformation in the agriculture, which aims at closer ties between manufacturers, processors and distributors. He gave an example of Dano-Unimilk, which already operates in two Belarusian regions. “As it was our first experience in the joint company creation, we had to deal with some misunderstanding. At the moment there is none. The company has concluded agreements with partners, regions and investors in order to develop its raw material base and extend the lineup. It helped to streamline our activities and implement projects that are profitable both for manufacturers and investors,” Deputy Prime Minister said.

Negotiations are underway at the governmental level with a number of other well-known companies that want to start business in Belarus. According to the Deputy Premier, Directive 4 will also help attract private sector including foreign investors in investment projects in agriculture. “I think that the projects currently in the pipeline will be implemented soon and provide positive results. Work in this direction is already underway,” said Valery Ivanov.

National brand companies are involved in the work on establishing large holding companies. For example, Savushkin Product and Babushkina Krynka dairies are interested in the project to set up a holding company to manufacture and sell dairy and meat products. Such holding companies would be beneficial for both milk and meat producers and for processors, said Minister of Agriculture and Food Mikhail Rusyi. He also said that a representative of a big Russian-Finnish company, Galaktika, is expected to visit Belarus in June (the prospective joint venture will be based in Vitebsk Oblast). Negotiations are ongoing with the Dutch company Campina. “If we are happy with their approaches, we will work together. Our goal is to use their distribution network in third countries to sell products which we will produce jointly,” said Mikhail Rusyi.

According to www.belta.by