COUNTRY FOCUS ▶▶▶
Russia wants to rebuild feed industry
The Russian government wants to pump billions into a major project to make the domestic feed industry more effective and efficient, but it’s likely to cost more.
BY VLADISLAV VOROTNIKOV E
Russia is import- ing almost all of its feed a dditives.
arly in November 2019, the Russian Agricultural Min- istry presented a new feed and feed additives devel- opment programme, in which it was officially ac- knowledged that feeding was the Achilles heel of the
Russian livestock industry. “In recent years livestock produc- tion in Russia has increased, and farms have been using ani- mals and birds with a high genetic potential, so it is impossi- ble to optimise output without modern feeding technologies, high-quality feed and feed additives,” the Ministry said in an explanatory note to the programme published on the official government website. When it comes to feeding efficiency, feed additives play an important role, but in this segment the country remains dependent on imports, the Ministry said. In particular, Russia imports 80% of amino acids, from 85% to 95% of feed antibiotics, from 70% to 90% of fermented feed, from 80% to 85% of mycotoxin neutralizers, 100% of feed vi- tamins, 30% of feed proteins of animal origin and 90% of
micronutrients, the Ministry estimated. “This leads to an in- crease in the production costs of the feed industry and consequently to problems with the competitiveness of Rus- sian livestock on the global market,” the Ministry said. The production costs and effectiveness of the Russian agricultural industry are crucial for the Russian authorities. In 2018, Rus- sian President Vladimir Putin ordered the government to double agricultural exports by 2024 to $ 45 billion per year. Russia exports a lot of agricultural products, but only a few categories have high added value. For instance, the Russian Federal Customes Service estimated that 36% of revenue from agricultural exports was generated by grain exporters and 17% by wild-fish exporters in 2018. Russia has huge po- tential in increasing the export of high-added value products, such as meat and dairy products, but a substantial improve- ment in production costs is needed, so that Russian products are competitive on the global market, accroding to Russian Agricultural Ministry in 2019.
Feed additives in the spotlight This is the first programme of its kind in the Russian feed in- dustry, when the main focus was put not on increasing quan- tities, but on improved efficiency. The main goals set in the programme are to improve the feed conversion ratio by 10% to 12% and to cut production costs by 12% to 15%, compared to the current rate, by 2025. An increase in production perfor- mance is also envisaged: from 28.9 million tonnes in 2018 to 33.3 million tonnes in 2025. To meet those targets the
14 ▶ ALL ABOUT FEED | Volume 28, No. 1, 2020
PHOTO: SLAVNIY KORM
PHOTO: KOMETOS GROUP
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