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Agro Washington Magazine
volume 5, number 1 (Autumn 2005)
Trade Partners The Republic of Belarus
The Republic of Belarus, which gained its independence from
the Soviet Union in 1990, is a nation of 10 million people, strategically
located in the middle of Europe, at the crossroads of major routes from
Western Europe. The country, which is slightly smaller than Kansas, borders
Latvia, Lithuania, Poland, Russia, and the Ukraine.
The agriculture of Belarus is an inherent part of the
economy. The total area of agricultural lands is 22 million acres, or 44
percent of the total area of the country. The climate is characterized by
mild and humid winters, warm summers, and moist falls. Nearly three million
people live in rural areas, and around 400,000 are engaged in agriculture.
The agro-industrial complex of Belarus ranks first among
Commonwealth of Independent States countries, regarding per capita
production of potatoes, other vegetables, meat, and milk.
Although large farms, formerly collectives, have been
preserved in Belarus, there are over 2,000 private farms. Large farms
produce 53 percent of the nation’s agricultural output. Belarus produces a
full variety of crops, including grain, potatoes, vegetables, sugar beets,
flax, beef, and dairy products.
The government’s goal is to enhance the productivity of its
agriculture up to the European level, and in some places that goal has
already been achieved. It believes that rural issues, especially the
question of agricultural production, are one of the priorities of the social
and economic development of any society and state.
That had been the case in Belarus during the Soviet period.
But, due to liberal reforms in the early 90s of the last century, many
achievements were discarded. Negative consequences of that policy resulted
in destabilization and declining agricultural production.
In order to overcome problems in the country’s economy, the
government augments its support of agriculture, especially as far as
technical re-equipment is concerned. Only last year, the budget for
agriculture totaled around $1 billion, and accounted for 13 percent of the
nation’s budget. Government support of agriculture amounted to over $50 per
acre.
Over the last few years, Belarus has witnessed stable and
sustainable economic growth. Reasonable prices, government support,
privileged credits, and leasing are making it possible for agricultural
enterprises to acquire new agricultural machinery, fertilizers, new
varieties of seeds, advanced technology, and purebred cattle and poultry.
This has resulted in high production and consumption levels of food.
The President of Belarus, Alexander Lukashenko, has initiated
a program for the revival and development of rural areas, in which numerous
ministries and state institutions are involved. The program’s goal is to
increase total production by 45 percent by 2010, secure reasonable
profitability, and increase the average wage of agricultural workers whose
interests are the essence of the program.
The Program is designed to achieve two complementary tasks:
(1) guarantee high social standards for agricultural workers, and (2)
organize competitive production sufficient for the economic development of
agricultural enterprises and social development of rural areas.
Higher efficiency of agricultural production will be secured
through scientific research represented by 16 research institutes and six
testing sites of the division of agricultural sciences of the National
Academy of Sciences of Belarus, as well as four higher educational
institutions of the Ministry of Agriculture and Food.
Education is heavily stressed in Belarus. Agriculture is
assisted by over 62,000 specialists with college and university degrees in
agriculture. Every third specialist in agriculture has a higher education.
Among the agricultural universities it is necessary to single out the
Belarusian State Agricultural Academy, which has over 150 years of
experience in training qualified agricultural personnel.
Many young specialists have studied abroad, with particular
attention given to foreign methods of organizing agricultural production by
farms. The state has incentives for specialists to stay in rural areas.
In the field of science experts have been working on creating
new varieties and hybrids of crops, high-yield breeds, varieties of animals
and poultry, and highly efficient machines and equipment.
They also are studying the rational use of land resources and
effective and ecologically safe means of protecting plants. As a result, the
number of agricultural enterprises with high yield of crops has increased
every year.
To increase the effectiveness of processing agricultural
products, the government is planning to reconstruct and re-equip operations
with new domestic and foreign equipment. The implementation of projects
under the program will require $32 billion, including $7.6 billion for the
social sphere.
Belarus considers its future accession to the World Trade
Organization as an important step in its integration into the world economy.
It does not, however, want to speed up the process by sacrificing speed for
quality.
Its goal is to increase exports of foodstuffs, to gain
reliable and stable income in hard currency, and to import capital,
technology, and scientific knowledge from developed nations so as to
increase its competitiveness in world markets.
In 2004 exports of agricultural products totaled $726
million. Exports, which went to thirty-two different nations, included milk,
meat, eggs, flax, casein, potatoes, pure-bred cattle, and vegetables. In the
next 3 to 5 years, Belarus hopes to export nearly $1 billion of agricultural
products and processed goods.
The participation of Belarus in the economic integration
process means liberalizing access to its market for imported products. This
process is not, however, designed to negatively affect the internal market.
Imports of agricultural products in 2004, primarily grain, meat products,
vegetables, fruit, nuts, vegetable oil, and milk products totaled $950
million, or 33 percent less than in 2003.
For the purpose of developing effective foreign trade,
appropriate infrastructure is being established. Such infrastructure
contributes to the establishment of mutually beneficial business contacts,
development of industrial and commercial links, attraction of investments,
and new technologies.
As of January 1, 2005 there have been 523 joint ventures and
foreign enterprises registered in Belarus with the participation of U.S.
capital. The United States ranks first by contribution of foreign investors
in foundation capital of organizations with foreign investments.
Belarus is interested in attracting foreign capital for
agriculture and industry, i.e., credits, direct investments, and
international leasing that will facilitate the implementation of
technologies on energy, packing, enrich the range of goods, increase the
quality of provision, as well as create the technologically for new types of
products.
In that regard, the government of Belarus is in the process
of improving its legislative process so as to ensure a favorable investment
climate.
Information has been provided by the Ministry of Agriculture
and Food of Belarus. Mr. Pavel Shidlovsky, Counselor at the Embassy of
Belarus in Washington may be contacted for more information on Belarus’
agriculture. He can be reached at (202) 986-6335 or
shidlovsky@belarusembassy.org. |
