New feed plant will alter Russia's animal feed market
A new feed plant for young animals built by AgroBalt is expected to alter the current trend in Russia's animal feed market.
According to the executive director of AgroBalt subsidiary TK Agros, Alexander Lotov, the company recently completed the testing of the production line, which has a capacity of 1,500 tonnes of feed per month.
Young animal feed only 15% of feed produced in Russia
The plant specialises in the production of feed for young animals. Alexander Lotov noted that the project will have great importance for regional producers, as currently less and less feed for young animals is being produced in Russia. In general it accounts for about 15% of the overall feed market. Meaning that the sector is highly depended on feed imports.
According to data of the Russian Federal State Statistics Service, in the first half of 2014 in the Northwestern Federal District 579,000 tonnes of feed for young animals was produced, 6.7% less than in the first half of 2013. Full data on 2014 is currently unavailable.
Russia imports 80% of its young animal feed
According to Alexander Lotov, the outlook is good for production of feed for young animals, as right now 80% of it is being imported. "I think we can compete with imported products, because we can offer the same quality, but at a lower price."
AgroBalt Trade has invested US$6.5 million in the project and the plant is located near St Petersburg.
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