Compound feed

News 1829 views last update:14 Jan 2016

Future uncertain for Russian feed producers

In 2015 around 10-15% of feed producers in Russia will go bankrupt primarily due to the rising prices for imported raw materials, according to a report from the Russian media Delovoi Peterburg with the reference to the market participants, these are primarily independent feed mills which are not included in the structure of the large agricultural holdings.

In 2014, domestic producers of feed experienced several challenges. The first being the devaluation of the country's currency - rouble and, as a consequence, the rising of cost of imported components of compound feed production.

In particular the Russian market faced a price jump for feed additives which are accounted for 40% out of the cost of the feed. From the beginning, the price for feed additives and various supplements in Russia rose by 60-80%,  stated the report.

At the same time, Russian feed producers feel the pressure of the rising prices for basic feed components – grain and the products of oil processing. In 2014, Russia harvested 110.1 million tonnes compared to 91.3 million tonnes in the previous year, but the prices on the Russian market are tightly connected with the global prices, so the prices in roubles also jumped due to the devaluation of the Russian currency.

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