World Grain - August 2017 - 46

FEED QUARTERLY: RUSSIAN FEED INDUSTRY EXPANDING

GAINS EXPECTED OVER THE NEXT DECADE
The GAIN report said Valeriy Afanasyev, president of the
(in million tonnes)
Russian Feed Union, gave a report on the feed sector at the
2009
2011
2013
2015
2016
conference in which he said Russia's production of compound
Poultry
8.6
10.6
12.6
14.0
14.2
feeds in 2016 was estimated at 25.8 million tonnes, about a
Pork
3.8
5.1
7.1
8.5
9.3
4% increase over feed production in 2015. Afanasyev foreLivestock
1.9
2.2
2
1.9
2
casts that over the next 10 years the annual growth in feed
production will average between 3% and 4%, driven by feed
Other
0.4
0.057
0.087
0.3
0.4
demand from the pork, livestock and aquaculture sectors.
Total
14.7
17.9
21.7
24.7
25.9
By 2025, he predicts the country's compound feed output
Source: Rosstat
will reach 38 million tonnes, with feed for poultry making up
18 million tonnes of that total, a 29% increase from 2016. The
Russia's largest compound feed producers
PRVW VLJQL¿FDQW LQFUHDVH ZLOO RFFXU LQ IHHG IRU SRUN ZKLFK
(in 1,000 tonnes)
will rise 61% to 15 million tonnes, while feed for livestock is
2,000
forecast to reach 2 million tonnes, a 50% increase over 2016.
Afanasyev also noted strong potential in the production of
feed
for aquaculture. The Russian Feed Union estimated feed
1,500
production for aquaculture at 150,000 tonnes in 2016.
The Russian feed sector does face some serious challenges,
1,000
Afanasyev said. He said that as a result of the use of nonbalanced feed ratios (in terms of proteins and amino acids)
animals in Russia often have to consume twice the amount of
500
feed compared with the prescribed norms in other countries.
He emphasized the importance of developing a more balanced
feed ratio in Russia, incorporating byproducts from the food
0
industry in the production of feed, such as corn gluten, molasses, dried sugar beet chips, brewers waste and distillers dried
grains. Currently, the Russian Feed Union estimates the share
of grain in animal feed in Russia at 70%, compared to only
Source: Russian Ministry of Agriculture
40% to 45%, on average in the European Union.
Russian production of premixes by sector
Afanasyev added that because of the higher percentage of
(in 1,000 tonnes)
JUDLQLQIHHGUDWLRQVODUJHÀXFWXDWLRQVLQJUDLQSULFHVFDQVH300
verely impact feed prices. For some poultry producers, the
price of ingredients becomes the major factor in choosing a
250
feeding formula. He said in 2015-16 and 2016-17, the supply
of fodder grains increased and, as a result, prices for fodder
200
grains decreased. However, the cost of other ingredients such
150
as soy, vitamins and minerals, as well as the cost of production of compound feed, may increase in 2017-18, and poultry
100
producers may continue using more grain in feed than is prescribed by optimal feeding formulas.
50
He also reported that the total production of premixes
jumped 68%, going from 186,000 tonnes in 2013 to 275,000
0
2013
2014
2015
2016
tonnes in 2016. The largest increase in premixes during this
Poultry
Total
Pork
Livestock
period was seen in the poultry sector, with a 70% rise, folSource: Russian Compound Feed Union
lowed by the pork sector with a 68% jump. The GAIN report
said the Russian Feed Union forecasts production of premixes
He said the Ministry of Agriculture estimates Russia's to reach 400,000 tonnes by 2025, primarily as the result of the
current production capacity for feed at 38 million tonnes. steady development of both the pork and livestock sectors and
$PHUNKDQRYDOVRQRWHGWKDWWKHJRYHUQPHQWLVFR¿QDQFLQJ the use of better feeding ratios.
77 feed production projects at a total cost of 22.3 billion ruThe report said in 2016 there were 235 feed facilities opbles. The share of the state support for these projects is pro- erating in Russia. This number includes 134 facilities with
jected to be about 5 billion rubles, he said.
an annual production capacity between 10,000 tonnes and
Dynamics of Russian feed production (2009-16)

Prodo

Agro

Charoen

Belogorye

Pokpand Foods

RusAgro

Belaya Ptitsa

GAP Resurs

Belgrankorm

Bezrk

Cargill

Prioskolye

Miratorg

Cherkizovo

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