Belarus Amends Legislation on Dairy Product Export via Commodity Exchange

Expanded List of Mandatory Exchange-Traded Dairy Products

The list of dairy products mandatory for sale through BUCE is expanded to include whole milk powder and 72.5% fat butter. Previously, the use of the exchange was mandatory only for the export of skimmed milk powder and 82.5% fat butter.

Elimination of Off-Exchange Export Schemes

According to the amendments, the off-exchange export scheme for dairy products not sold at exchange auctions is eliminated. The possibility of off-exchange sales will remain only within the framework of intergovernmental agreements with other states. Dairy products can also be sold off-exchange based on decisions by regional executive committees and the Minsk City Executive Committee with the consent of the Ministry of Antimonopoly Regulation and Trade (MART) and the Ministry of Agriculture and Food. In this case, off-exchange prices will not be tied to exchange quotations formed based on BUCE trades.

Introduction of Exchange-Based Address Transactions

BUCE introduces a mechanism for exchange-based address transactions for dairy products supplied to foreign markets. Address transactions are not anonymous and involve specific foreign buyers. Both parties can use exchange risk management tools such as price corridors, deposits, and settlement through exchange accounts. Address transactions are concluded during an additional trading period at prices no lower than the export exchange quotation formed during the main trading periods.

Simplified Procedures and Incentives for Foreign Buyers

For foreign buyers of dairy products, a simplified procedure for access to trading is introduced, with an exchange fee of one Belarusian ruble per transaction. For domestic exporters, the exchange fee rate will be 0.1% of the transaction amount.

Goals and Benefits of the Amendments

The use of exchange-based address transactions aims to address key issues in the dairy industry, such as ensuring transparent market pricing for foreign trade contracts, increasing the efficiency of export sales, and diversifying sales markets. The address mechanism also aims to reduce price risks in long-term transactions and provide Belarusian milk processors with a full range of exchange tools and services to facilitate work in foreign markets.