BELARUSIAN ECONOMY & TRADE

MINSK, Feb 23 (Prime-Tass) -- Belarus’ President Alexander Lukashenko has approved the spending of the Agriculture Support Fund, which amounts to 1.37 trillion Belarusian rubles in 2005, according to presidential ruling #95.

The budget fund is formed from 2% of revenues of Belarusian companies, expected at 1.36 trillion Belarusian rubles, and payments for the use of agriculture machinery, at 10 billion rubles. A total of 130 billion Belarusian rubles is to be received as repayments of budget loans.

A total of 1.11 trillion rubles of subsidies will be provided, as well as 276.723 billion rubles of investments in fixed assets.

Besides, 454.575 billion Belarusian rubles are to be spent to repay debts on loan and interests.

In particular, the compensation of banks’ losses caused by the issue of preferential loans to agricultural companies amounts to 50.2 billion Belarusian rubles, while the compensation of losses caused by the issue of interest-free loans for purchases of machinery stands at 64 billion rubles.

A total of 212 billion Belarusian rubles is to be spent to repay the loans issued under the government’s guarantees for purchases of agricultural machinery.

Purchase price markups are to amount to 297 billion Belarusian rubles and price cutting subsidies for machinery purchases are seen at 173.8 billion rubles.

A total of 129 billion Belarusian rubles is to be invested in cattle and poultry farms refit, 93.7 billion rubles in the upgrade of grain separating and drying fleet and 26.5 billion rubles in the refit of flax-scutching mills.

In 2004, the budget of the agriculture support fund amounted to 987.539 billion Belarusian rubles. End (2,163 Belarusian rubles – U.S. $1)

21/02/2005

Belarus, Moldova mull creation of JV to produce corn seeds

MINSK, Feb 21 (Prime-Tass) -- Belarus and Moldova consider the conditions of the creation of joint venture to produce corn seeds using the facilities of the corn and calibration plant based in Mozyr, in the Gomel Region, which was launched in October, a source with the Agriculture Ministry told Prime-Tass Monday.

“We expect that the procedure of the creation of the joint venture will be approved within two weeks. The company is likely to be established as a partnership with either side contributing around $10,000,” the source said.

“We have agreed that Belarus will hold 51% in the plant and Moldova 49%,” the source added

Belarus’ experimental base Krinichnaya, which is part of the Belsemena seed-producing association is the Belarusian founder of the joint venture.

The Moldovan founder is the corn and sorghum research facility Porumben.

“Belarus’ climate only allows producing early hybrids here. We plan to grow seeds in Moldova and process them at the corn and calibration plant in Belarus,” the source said, adding that the Belarusian company will thus work all the year round.

It was reported earlier that the production capacity of the plant is to double to 5,000 tonnes in 2005. The cost of the first production department of the plant is 8.062 billion Belarusian rubles.

After the capacity doubles the net profit of the plant is expected to reach U.S. $790,000, and the project will break even within three years. The profitability of the company is expected at 50.3%. The corn seed net cost is planned at $323.86 per tonne, while the sales price is to be set at $650 per tonne.

The decision on the construction of the plant was made in October 2003.

Currently, the annual output of corn seed hybrids is at about 1,500 tonnes in the Gomel Region. Belarus imports 15,000 tonnes of seeds worth $13 million because of seeds’ poor quality. The new plant is to cut corn imports 30%. End (2,165 Belarusian rubles – U.S. $1)

14/02/2005

Agriculture Ministry opens tender to buy grain drying equipment

MINSK, Feb 14 (Prime-Tass) -- Belarus’ Agriculture Ministry has opened a tender for domestic and foreign companies to seek suppliers of grain separation and drying equipment for state-owned Belagroservice, an official with the ministry told Prime-Tass Monday.

The ministry wants to buy 384 grain dryers, 368 furnaces, and 81 units for finished drying, 362 norias, 689 mechanical grain loaders, 651 grain throwers, 205 bunkers, 618 primary seed cleaning machines, 631 precleaning machines, and 328 secondary grain cleaning machines.

Applications are accepted until February 25.

Belarus-made machinery will enjoy preferences, the official said.

Belarus plans to invest 98.925 billion Belarusian rubles in the upgrade of grain separating and drying systems of Belarusian agricultural companies in 2005, up 57.4% on the year.

Of them, 75.266 billion Belarusian rubles are to be allocated from the Agriculture Support Fund, 10.299 billion Belarusian rubles from local road funds, 5.680 billion rubles from the innovation fund with the Energy Ministry and 7.680 billion rubles from local budgets and companies’ own funds.

Belarusian agricultural companies have about 5,400 grain drying and 9,000 grain separating machines. Of the total number, 85% have been operating for more than 15 years, which results in an excessive consumption of resources [by 30-50%] compared with the developed countries. End (2,167 Belarusian rubles - U.S. $1)

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agriculture

Belarus’ Lukashenko approves spending of agro support fund for ‘05

Belarus, Moldova mull creation of JV to produce corn seeds

Agriculture Ministry opens tender to buy grain drying equipment