European Union and there are no analogues of spare parts for the equipment in Russia,” the company warned. Alexander Matveev, general director of NPAO De Heus said during the press conference that his company has put a lot of effort into maintaining the stability of the Russian feed industry. “We ac- tively cooperate with industry unions as part of the develop- ment of anti-crisis measures, prepare reports for them on emerging problems in logistics and financial operations, openly conduct a dialogue with government agencies and participate in industry meetings. In general, we fully try to contribute to overcoming this difficult situation for the economy of our country,” Matveev said.
Supply disruptions turn severe As Russia is roughly 90% dependent on feed additives, the current crisis has already taken a toll on the stability of prices and supplies. “In Russia, the price of feed components has jumped, and we see certain difficulties with the supply of goods and the processing of payments,” commented Lybov Savkina, marketing director of the Russian consultancy Feed- lot. “Prices for feed additives fluctuate weekly due to ex- change rate volatility and, depending on the product group, the increase ranges between 30% and 100%. Almost all sup- pliers switched to 100% prepayment. Some European compa- nies refuse to ship goods to the addresses of Russian compa- nies, and if they do, the number of vehicles from the EU countries [crossing the border with] Russia has dropped dra- matically,” Savkina said. “There is a high risk of a shortage of
amino acids and vitamins, which are key for the livestock in- dustry,” Savkina claimed. “Since these are expensive raw ma- terials, the stocks are not large,” she added. On the other hand, there are hopes for supply stabilisation, Savkina said, adding that this would require establishing alternative logis- tics schemes, and an increase in feed additive import from Southeast Asia, primarily from China. A similar opinion is shared by Maxim Timoshkov, CEO of the Russian feed additive company Misma Pro. “The vast majority of [feed additive] suppliers want to work with us and main- tain cooperation. Now the main problem is logistics, there are a number of issues with the delivery of goods not only from the EU but also from China. Another problem is payments, since currently all suppliers, taking into account the increased risks, limit the volume of shipments by credit limits, or ask, basically, for an advance payment,” Timoshkov said.
Adjusting business to the new reality The Russian feed additive market currently lacks stability, said Sergey Mikhnyuk, executive director of the National Feed Un- ion. “This is because unfriendly countries restrict cargoes to Russia, including feed additives. Most batches are halted in the trans-shipment ports of Rotterdam, Hamburg, Zeebrug- ge, and so on,” Miknyuk adds that feed additives are being supplied by train from China, but the capacity of this route is not enough to meet existing demand. Besides, cargoes sent to Russia are not currently covered by insurance from international companies, Mikhyuk said. If they
▶ ALL ABOUT FEED | Volume 30, No. 3, 2022 23
Import and ex- port of raw ma- terials and equipment has been hampered by Western sanc- tions against Russian banks combined with transport issues.
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