Russia: The price of feed continues to grow

According to the Russian Federal Static Service (Rosstat), the average price for  Russian animal feed in August 2012 was at 10, 837.71 rubles per tonne (US$ 346), which is 4% higher than the price in July and 10% higher then the prices in August of last year. Also in August of 2012 the price of feed for poultry in Russia set an absolute record high for the last 3 years as it rose to 12,179.26 rubles per ton (US$ 389).

This is 6% higher than in July and 13% higher than in August 2011. The average price of feed for pigs in August 2012 was 3% higher than in July, and 2% higher than in August of the last year. In August, domestic feed for pigs cost an average of 9,029.90 rubles per tonne (US$ 288). The average price of feed for cattle in August 2012 increased by 5% compared to the previous month, while compared to the figures of last August it was below 1%. On average its price stands at 8,187 rubbles per tonne (US$ 261).

Price for a tonne of feed wheat reached 9,625 rubles per tonne (US$ 307). Thus, in September wheat reached an absolute record. Wheat has risen over the past week by 875 rubles per tonne (US$ 27.9). A previous record was set in April of 2008.

“Feed prices rose mostly due to Russian farmers being afraid that there would be an insufficient amount of feed grain on the domestic market, due to the drought in Russia this year”, said Prime Minister Dmitry Medvedev. In 2010 also due to the drought grain harvest had totalled 61 million tonnes, which forced authorities to introduce an embargo on exports. This year, the export restrictions are not planned, Deputy Prime Minister Arkady Dvorkovich said repeatedly.