Russian Import Prices for Belarusian Milk Dip for First Time in Two Years
Cutting the Cost of Belarus' Dairy Exports
The Ministry of Agriculture and Food in Belarus decided to lower the top prices on certain exported dairy goods under international trade agreements. This move came as a result of Decree No. 36, issued on April 23rd by the Ministry, which dropped the minimum prices for dairy products supplied to Russia.
Here's a breakdown of the price reductions:
- Milk, cream, and other dairy products in powder, granules, or solid forms, with a fat content above 1.5% and without added sugar or sweeteners, now cost 20 Russian rubles less, setting the new rate at 400 Russian rubles per kilogram.
- Butter prices have been reduced as well:
- If the fat content ranges from 72% to 79.9%, the price decreased by 100 Russian rubles, now standing at 630 Russian rubles per kilogram.
- For butter with a fat content of 80% or higher, the price was reduced to 700 Russian rubles per kilogram, also a decrease of 100 Russian rubles.
These new prices went into effect on April 24th.
It's worth mentioning that this is the first time since April 2023 that the price of Belarusian dairy products for Russia has gone down - they had been on an upward trend since then.
As for the broader economic context, food inflation, including dairy products, has seen both rises and falls in nearby regions during the early months of 2025. For instance, Sweden faced an ascension in dairy product prices in early 2025, reaching a sixteen-month high in March due to various factors. However, in comparison to Belarus-Russia trade, economic data hint that price pressures may have lessened or reversed in some sectors by early 2025, as inflation rates in countries like Hungary declined in March 2025, attributable in part to reduced food price growth.
Since Belarus is a significant exporter of dairy products to Russia, any price decreases in Belarusian dairy likely reflect alterations in supply-demand dynamics or trade conditions. Although industry reports and market insights suggest that Belarusian dairy prices for Russia had been increasing or holding steady since April 2023, affected by geopolitical tensions, input cost fluctuations, and trade policies, the first observed price drop since that upward or steady trend likely occurred in the first quarter of 2025, mirroring broader commodity price easing and reports of slight price adjustments in dairy products around March-April 2025.
In essence:
- Belarusian dairy product prices for Russia had not decreased since April 2023.
- The initial noteworthy price decrease occurred in the early months of 2025, potentially around March or April, consistent with easing food inflation and commodity prices in Eastern Europe and Russia's trade partners during that period.
Further research, such as detailed trade or customs statistics, would be necessary to pinpoint the exact month for this price drop; however, the available evidence supports the conclusion of a first decline in prices occurring in early 2025 following a sustained period of price increases or stability since April 2023.
- The decreased costs of exporting dairy goods from Belarus, as stated in Decree No. 36, were applied to the finance sector in Russian rubles, with the price reduction amounting to 20 rubles per kilogram for certain dairy products.
- The new prices for Belarusian dairy products, such as milk, cream, and butter, were added to the dairy industry's product portfolio, effective as of April 24th.
- The price drop in Belarusian dairy products for the Russian market can be considered a response to changing supply-demand dynamics or trade conditions, which have been influenced by factors like geopolitical tensions, input cost fluctuations, and trade policies.
- Despite the broad trends of food inflation, it appears that some price pressures may have lessened or reversed in certain sectors, including dairy products, by early 2025, as indicated by declining inflation rates in countries such as Hungary.
