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News 1140 views last update:7 Aug 2012

Russia: substantial soybean exports could lead to animal feed price hike

The Russian government has recently lowered the export customs duty on soybeans from 20% to 5%. Experts believe the move could lead to a sharp increase in soybean exports, which will in turn create a deficit in the domestic market, thus increasing the price of compound feed.

As and from May 2012 the rate of export duty on soybeans is 5% but not less than €8.50 per tonne. Previously, it was 20% with a minimum limit of €35 per tonne. 
 
Such a serious decline in rates can be explained by the fact that last year, Russia had a record soybean harvest - 1.7 million tonnes. In 2010 it was less - only about 883,000 tonnes. Currently, Russia is carrying out a large-scale project to create a corn-soybean belt in Siberia, which will allow the next two years to further increase soybean production by 50%.

According to the President of the Russian Soy Union, Anatoly Ustyuzhanina Russian soy has an important competitive advantage over foreign products, and therefore its supply to the world market in the next few years will be very attractive to local manufacturers. 
 
"Our soybeans are different from foreign soybeans because it grows without any the use of genetically modified organisms (GMO). In foreign soy GMO’s are found, although not in large volumes. Nevertheless, the Russian Soy Union now poses the question that the domestic soybean should only go to food production, while the imported soy - to feed production. However, animal feed at the same time should not be hazardous to their health and, therefore, to human health. ".
 
However, according to some experts the increase in soybean exports over the next two years could lead to a rise in the price of compound feed by 15-20%.

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