Br38m worth of raw milk sold via Belarusian Universal Commodity Exchange so far this year

MINSK, 22 June (BelTA) – Since the beginning of 2020 the Belarusian Universal Commodity Exchange (BUCE) has facilitated the sale of raw cow milk worth Br38 million, 2.7 times as much as in the entire last year, BelTA has learned.

According to BUCE Press Secretary Roman Yaniv, 41,000 tonnes of raw cow milk worth Br38 million has been sold via the commodity exchange since the beginning of the year. The figure is 2.7 times as much as the figure recorded in the entire last year both in physical terms and monetary terms. The larger sales are attributed to an expansion of the pool of raw milk sellers, who regularly participate in exchange trade, and to Belarusian milk processing enterprises buying more raw milk via the commodity exchange.

The source noted that Belarus is the only country where raw cow milk is sold via a commodity exchange. Only milk producers without debts to milk processing enterprises are allowed to participate in trade sessions. This is partially why the initial supply of raw milk was limited, resulting in prices higher than over-the-counter market ones. The situation continued through April 2020. However, the growth of prices slowed down in May. According to BUCE analysts, the current prices – Br0.70 per 1kg of high quality milk (without VAT) and Br0.71 per 1kg of premium quality milk – are close to the equilibrium price. Prices for raw milk may fall in summer as more milk producers without overdue commitments start selling their milk.

The source stressed that a commodity exchange is a classic market tool that offers a fair price for a commodity depending on supply and demand. Sellers have been at an advantage due to the shortage of raw milk until recently. The situation has changed now – more and more producers are trying to sell their products via the commodity exchange while the number of those willing to buy high-quality raw materials with the guaranteed execution of the deal has always been sufficient.

The public joint-stock company (OAO) Belarusian Universal Commodity Exchange was established in 2004. The first trade sessions took place in June 2005. BUCE is one of the largest mercantile exchanges in Eastern Europe. Its key function is to assist Belarusian companies with exporting their products and assist foreign companies with entering the Belarusian market. The commodity exchange facilitates trade in metals, timber, agricultural products, and a broad choice of industrial and consumer goods.

Belta