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Abstract
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.