News 274 views last update:6 Aug 2012

More demand for DDGS in Russia

Russia is the biggest country in the world and has the eighth largest population with approximately 141 million people. According to Alex Kholopov, US Grains Council consultant in Russia, the livestock and poultry industries in his native country are growing "very rapidly."

The substantial growth is due in large part to the government's decision to make agriculture a national priority. Specifically, Kholopov said prior to the government's focus on agriculture, it was nearly impossible for livestock and poultry operators to borrow money for longer than a year. Today, the Russian government has afforded the industries with loans for up to eight years with zero percent interest.

Swine industry transformational
"Russia's swine industry is in a transformational phase. This industry was previously very small with operators only feeding a few hogs at a time. We are seeing that trend shift to a more modernised industry similar to the United States," Kholopov said.

The swine industry has doubled in two years and will likely continue to grow at this pace, increasing the likelihood of the industry to consume nearly all domestically produced corn. As a result, leaders in Russia's poultry industry are looking to US distiller's dried grains with solubles, a co-product of US ethanol. Dmitry Lvovich, assistant to the general director of OGO Group, one of the top three companies in Russia in terms of elevator capacity, livestock feed output and poultry production, is attending the Council's International Distillers Grains Conference (IDGC) in Indianapolis, Indiana this week.

"I am here (IDGC) looking for the right supplier of US DDGS to establish a long term relationship," said Lvovich. "I am convinced of the value of DDGS as a feed ingredient due to the US Grains Council providing educational seminars in Russia." Lvovich said when a reliable supplier is identified OGO will work vigorously to get the US company registered to export DDGS to Russia. He said the biotechnology registration process typically takes one year, but he is hopeful the process will only take a few months. When the registration is complete, Lvovich said OGO will be turning to the Council for technical assistance.

Efficient & effective
"We will need to know how to efficiently and effectively feed the product," he said. "We are particularly interested in the nutritional components of distiller's grains. We foresee other companies following our lead and incorporating DDGS into poultry rations in the near future. Much promotional efforts are needed right now."

Currently in Russia, the livestock and poultry industries utilise 18 million metric tons of feed ingredients with 60 to 70 percent going into poultry rations.

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