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17 august 2010

Belarus may limit imports of Ukrainian beer

The positions of Ukrainian brewers on the market of Belarus can seriously deteriorate. As it became known to reduce the supply of Ukrainian beer in the country, Belgospischeprom initiates their licensing. The significant decrease in exports to Belarus have a negative impact on earnings of brewing companies, say market participants.
The Belarusian State Concern of Food Industry (Belgospischeprom) initiates the licensing of import of Ukrainian beer, told the press service of the concern.
"Such suggestion has been set before the Council of Ministers of Belarus as a mechanism to control imports", - said spokeswoman of Belgospischeprom Irina Guseva. Licensing of import of Ukrainian beer could reduce the volume of imports of the product to the country, BELTA news agency reported quoting the statement of the Belgospischeprom chairman Ivan Danchenko.
The draft document on the introduction of licensing has already been prepared. It is designed for development programme of the brewing industry of Belarus for the next five years, which implies in particular the decline in the share of imported beer from the current 30% to 5% of the total market (30 million dkl) 2015.

Ukraine is one of the largest suppliers of beer to Belarus. According to market participants, the contribution of Ukrainian import reaches 10% of total sales. Cost of production in the country is lower than in Belarus.
"Ukrainian companies buy raw materials for beer production at market prices. In Belarus, only state-owned enterprise sells malt, and the state sets the price of barley", - says CEO of Ukrpivo Galina Korenkova. Belarussian malt is some 20% more expensive than Ukrainian, said CEO of Slavutich Carlsberg Group Peter Chernyshov.

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