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Belarus might set up integrated national food companies

MINSK, 3 October (BelTA) – The possibility of setting up integrated national food companied was considered at a presidential session on 2 October. The session was dedicated to ways to improve management in the domestic agribusiness, BelTA learnt from the press service of the Belarusian head of state.

Agriculture and Food Minister of Belarus Leonid Zayats emphasized the need to streamline the operational structure of the domestic agribusiness and establish big agricultural companies and holding companies in every district of the country to bring together agricultural producers and processing companies and establish a complete production and sale cycle. “The future of the agribusiness belongs to big associations,” the Agriculture and Food Minister of Belarus noted.

“To penetrate new markets Belarusian companies need to follow new trends and establish a powerful export-oriented production structure in the processing industry. The emphasis should be made on economically powerful regional and nationwide companies pursuing an aggressive policy and focusing on exports, with well-established logistics system, clear-cut, economically efficient specialization,” Leonid Zayats said.

Vladimir Gusakov, the Deputy Chairman of the Presidium of the National Academy of Sciences of Belarus, agreed that there is a need for big integrated structures, “We need to move further. Belarus needs to rapidly establish big integrated national food companies. There should not be many of them. Maybe, one per a major product: an integrated dairy company, integrated meat company. Small companies will not be able to survive competition on the global market”.

“Once we approached the creation of dairy and meat companies, two-three or one per a region. Maybe, one, we need to study the best world’s practices to avoid mistakes. It is not a problem. If we have companies like Agrokombinat Dzerzhinsky, it will not be a problem to integrate them into this open-ended company. At this stage they also demonstrate good performance. It is good at the current stage. But let us study the related practices and see,” Alexander Lukashenko said.

In this connection, Vice-Premier Mikhail Rusy noted that besides setting up own big companies, “Belarus needs to attract major international corporations and make active inroads within the framework of the Customs Union, up to the purchase of dairy factories”.