Russia Demonstrates a Steady Rise in Animal Feed Production
Jul 2nd, 2010Russia is among ten major Animal Feed manufacturers following such countries as the USA, China, Brazil, Japan, Mexico, Canada, France, Germany, Spain. Netherlands is Russia’s closest rival for the place in this list.
The peak of Animal Feed production in Russia was reached in 1990, followed by the dramatic downfall in 1998. Today this sector experiences growth, however it is unlikely it will reach 1990 level in the coming years.
Russia has been demonstrating a steady trend to expand Animal Feed production. The output in 2008/2009 was 14 mln tons according to official data (or 24 mln tons indicated by unofficial data).
Russian Animal Feed market is hugely dependable upon corresponding feedstock markets.
Animal Feed production rise is directly related to the increase in the purchasing power of main Russian cattle breeding segments and the level of investment into them. Dynamically developing poultry farming is currently a main fodder consumer and a major impetus behind fodder production expansion in Russia. This sector is followed by cattle and fish breeding.
Despite the steady growth, Animal Feed industry in Russia faces a number of challenges. The cattle breeding development is impeded in Russia by non-balanced character of animal feed both at protein and amino acid level. This hindered performance of the Russian cattle breeding sector in terms of quantity and quality. Moreover, such non-balanced fodder is predominantly used to feed cattle stock (cows, bulls, pigs, etc), which has a detrimental effect on the Russian cattle breeding industry as compared to that of the developed countries.
At the same time production of balanced Animal Feed is hazardous in the country as a result of high level of equipment deterioration (up to 90%) at Russian animal feed plants, consumer-unfriendly location, lack of qualified and trained personnel, permanent rise in prices for power, feedstock, biologically active components, disintegration of high-tech sector of Animal Feed manufacture.
More information on Animal Feed market in Russia may be found in the report Animal Feed Market in Russia: Business Report 2010 recently published by TD The Market Publishers, Ltd.