Russia: Rise in feed production despite meat crisis
The Russian feed industry will increase feed production to 40 million tonnes by 2020 despite the country’s meat industry crisis, according to the State Program of Agricultural Development.
This year the production output from the meat producers may drop by 5% compared to 2014, with unclear long-term prospects of the industry development. The total demand in feed production in the domestic market has been estimated at 24 million tonnes.
At the same time, a report from the Russian analytical agency Agroinfo estimates that 70 of the largest feed mills currently provide about 70% of the total Russian feed production. Within the next five years production will be grow mostly due to the launch of new capacities by Russian agricultural holdings, which will produce compound feed to meet their own demands.
Total structure of the feed market
In the total structure of the feed market, poultry feed accounted for 55% or 13.2 million tonnes in natural terms, pork feed – for 24% or 6 million tonnnes, while cattle feed – 19% or 4.5 million tonnes.
It is expected that the demand for poultry and pig feed in the coming years will grow, as the country starts to develop export of this types of meat. At the same time, the production of beef in the country is projected to decline, which may negatively affect the production indicators of this segment of feed industry.
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