ZUR WETTBEWERBSFAHIGKEIT DER WEISSSRUSSISCHEN MILCHWIRTSCHAFT: EINE ANWENDUNG DES PORTERSCHEN DIAMANTEN

This Discussion Paper provides an analysis of competitiveness of the Belarus’ dairy sector based on international trade indicators. The ex-post analysis is extended by an ex-ante analysis in order to gain detailed insights into the sector’s future opportunities and challenges. Systematic access is established through relevant determinants with respect to Porter’s diamond. Ex-post analysis results indicate a strong position of Belarus in the international dairy trade although limited to homogenous products like milk powder and evaporated milk. Competitive disadvantages were revealed for highly processed dairy products. The ex-ante analysis through Porter’s diamond model reveals the necessary prerequisites for potentially successful future developments in the dairy chain. Natural conditions, infrastructure and supporting industries, even though amendable, affect competitiveness positively. Competitive disadvantages result from a low demand for vertically and horizontally differentiated products, weak factor conditions with regard to capital and labour input, and inappropriate policy. These determinants need to be improved urgently otherwise Belarus may forgo its present relatively good position in international dairy markets