Posted: 11.09.2024 10:25:53

Thriving co-operation in eastern direction

1.4-fold growth — the production branch for peat extraction and processing of the Vitebskoblgaz unitary enterprise is ramping up product supplies to China 

Vitebskoblgaz peat processing plant,
Vitebsk Region       Ilya Shvedko 

The relations between Belarus and China received a powerful impetus for development in September 2022, when, on the sidelines of the events within the Shanghai Co-operation Organisation in Samarkand, the leaders of Belarus and China adopted a joint declaration on establishing the highest level of relations in history — all-weather and comprehensive strategic partnership. This event marked a historic breakthrough for bothstates while the interest in deepening interagency and interregional contacts across all areas has increased manifold. The MT journalists learnt during their visit to the Vitebsktorf production branch of Vitebskoblgaz how the political decision by the leaders of the Blue-eyed country [Belarus’ nickname] and the Celestial Empire are being implemented in practice.



                                 The President of Belarus, 
                              Aleksandr Lukashenko,

“We are convinced that the ‘Shanghai spirit’ and comprehensive co-operation can become a strong foundation for a new architecture of the world.” 

Speech at the meeting of the SCO Heads of State Council in Samarkand, on September 16th, 2022

On the Silk Road 

Pavel Kravchenko, Director of the
Vitebsktorf production branch of
the Vitebskoblgaz UE
This summer was not the most favourable for the peat bogs of Vitebskoblgaz due to heavy rainfall. In July alone, the actual amount of precipitation exceeded the norm by 1.2 times. Nevertheless, despite the whims of the weather, the production is actively functioning, rapidly approaching the seasonal plan for the extraction of raised bog peat. According to Pavel Kravchenko, Director of the Vitebsktorf production branch of the Vitebskoblgaz unitary enterprise, this work will be completed, “We must get it done to ensure the uninterrupted operation of production and fulfil contractual obligations to our foreign partners. It is about our reputation and the immense effort invested in diversifying export supplies and entering new foreign markets — first and foremost, the market of the People’s Republic of China.”   
As noted by Konstantin Pochepko, Deputy General Director for Industrial and Agricultural Production at Vitebskoblgaz, the complex geopolitical conditions and the sanctions pressure from Europe, where partners have refused to co-operate with Belarusian producers, have compelled the enterprise to turn its attention to the East,
“As Aleksandr Lukashenko emphasised in one of his speeches, the time of Asia has come, and it is crucial not to miss out on this opportunity. The decisions made by the leaders of Belarus and China have undoubtedly facilitated access to this Eastern market. 
Vitebsktorf production branch of the Vitebskoblgaz unitary enterprise
We began exploring it in 2022. We obtained accreditation, worked out supply logistics, and participated in several major exhibitions where we found business partners and signed our first contracts. As a result, in 2023, we shipped 1,600 tonnes of peat products to the Celestial Empire worth $167,000. Alongside this, our specialists have continued their active efforts to expand our presence in the Chinese market. Thus, from January to July 2024, we have already shipped the entire volume of last year — 1,600 tonnes of peat valued at $229,000. In monetary terms, this represents growth by 1.4 times.”   
Experts from Vitebskoblgaz evaluate the potential of the Chinese market highly. In just two and a half years, its share in the total volume of export shipments of peat products has risen to 13 percent. The People’s Republic of China has taken third place in the company’s export rankings following Russia and Türkiye, which account for 40 and 26 percent of shipments abroad, respectively.
“The close attention to China does not diminish our interest in other markets, including the Asian region,” remarked Konstantin Pochepko. “In 2024, we began supplying peat products to Armenia, Georgia, and Uzbekistan. Currently, we are working on delivering a trial batch to Kyrgyzstan.” 

Under the sign of quality  





The focus on the quality of peat products enables Vitebskoblgaz to remain competitive even under the unstable conditions of the global market, as noted by Pavel Kravchenko. It is impossible to maintain high standards without the implementation of modern technologies in the production process. Therefore, Vitebsktorf is continuously working on the search for and acquisition of new high-efficiency equipment both at the raw material harvesting stage and during the production process. Thus, in December 2023, all work on the installation of a big bale press machine in the agro-town of Krulevshchina was completed. The new equipment has ensured increased productivity from eight to 16 big bales per hour, as well as significantly improved packaging quality. In February 2024, an advanced packaging machine for filling bags with volumes ranging from 2.5 to 55 litres was put into operation.
This has made it possible to considerably expand the range of products manufactured for the domestic market, which accounts for half of the total sales volume. There is a fairly high level of interest among domestic consumers. Therefore, although Vitebsktorf is an export-oriented enterprise, it primarily aims to ramp up its supplies within the country. “Overall, to maintain the competitiveness of the enterprise, a wide range of activities is implemented across all areas, which yield the desired effect. Due to this, we look to the future with confidence and are sure that all planned production, and financial and economic development indicators for 2024, including the key ones such as labour productivity and wage growth, as well as the profitability of the branch, will be achieved,” the branch manager underscored.

By Olga Bogacheva