MINSK, 20 January (BelTA) – The first batch of milk powder bound for the People's Republic of China has been sold via the Belarusian University Commodity Exchange (BUCE), BelTA has learned.
Two lots as large as 300 tonnes and 100 tonnes were available for sale. The total sum of the deals resulting from the trade session amounted to $940,000. The interest of Asian companies in BUCE is attributed to the increase in world food prices, which began in H2 2020. BUCE analysts believe this factor has noticeably increased the appeal of Belarusian dairy products in remote countries.
According to BUCE Press Secretary Roman Yaniv, conditions are favorable for exporting more dairy products and Belarusian companies have grabbed the opportunity. For instance, skimmed milk powder, which is sold to China via off-exchange transactions, was priced at $1.85-1.9 per 1kg in spring 2020. At present this product is traded at $2.35 per 1kg via BUCE. Even considering the logistics, it is quite a competitive price for the Chinese market, particularly in view of a price spike in Australia and New Zealand.
Apart from that, the Singaporean company Olam International resumed trading at BUCE in late 2020. It is one of the world's largest traders of agricultural products. Its return helped increase sales of Belarusian dairy products.
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.