VOLKOVYSK, 14 June (BelTA) – Belarusian President Aleksandr Lukashenko was informed about plans to build an additional facility to manufacture dry baby food as he toured Bellakt company on 14 June. These products are widely in demand not only in Belarus, but also abroad, BelTA learned.
The project is expected to be financed from various sources. Almost half of the sum is the loan from the Development Bank of Belarus. The rest is the funds of the national centralized innovation fund, the innovation fund of the Grodno Oblast Executive Committee and 13% - the company's own funds. The project is estimated at Br380 million.
Aleksandr Lukashenko stressed that such products, especially baby food, will always be in demand. For example, many countries in Africa are interested in it.
The project is expected to be financed from various sources. Almost half of the sum is the loan from the Development Bank of Belarus. The rest is the funds of the national centralized innovation fund, the innovation fund of the Grodno Oblast Executive Committee and 13% - the company's own funds. The project is estimated at Br380 million.
Aleksandr Lukashenko stressed that such products, especially baby food, will always be in demand. For example, many countries in Africa are interested in it.
As for loans, the president recalled about the need to pay them back. “Wherever you take a loan from, either the Development Bank or other institution you must pay it back. When there is a market, a marginal one, you will easily pay back everything you borrow within 10-12 years [$120-130 million is a lot]. We will support this project,” the Belarusian leader said. “We know how to do that. These products sell well today. Every country should feed its people. Children, even more so.”
As the president was reported, the company utilizes almost all its capacities and needs to expand. For Bellakt, baby food is the most marginal product. It posts profitability of 40% when exported abroad. The demand is huge. The head of state suggested developing this line of business not only in Volkovysk but also in other parts of the country. “This is our school, and it is important to develop this school,” the Belarusian leader said. “We know how to do that.”
Moreover, this is how the problem of butter oversupply can be addressed: “Milk which you used to make butter could be used to manufacture baby food. This product is in demand. We have enough capacities. Depending on the market trends we could switch and produce butter. But baby food is in demand."
As the president was reported, the company utilizes almost all its capacities and needs to expand. For Bellakt, baby food is the most marginal product. It posts profitability of 40% when exported abroad. The demand is huge. The head of state suggested developing this line of business not only in Volkovysk but also in other parts of the country. “This is our school, and it is important to develop this school,” the Belarusian leader said. “We know how to do that.”
Moreover, this is how the problem of butter oversupply can be addressed: “Milk which you used to make butter could be used to manufacture baby food. This product is in demand. We have enough capacities. Depending on the market trends we could switch and produce butter. But baby food is in demand."
Regarding the investment project at Bellakt, the president gave a green light. He instructed to prepare the economic case for the project without delay, without red tape. “If there is such a need, we will build this facility,” the head of state said. Make estimates. When raw materials and markets are available then we must implement such projects.”
The project will enable the company to process an additional 61,000 tonnes of milk per year, to double the production of dry infant formulas (up to 15,000 tonnes) that meet the international standards and expand the geography of exports to Asia, Africa, and Latin America.
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