Russia cuts feed component imports as rouble value falls
The ongoing devaluation of the Russian currency is likely to significantly cut the demand for imported feed components by domestic livestock companies, according to a report by the Intesco Research Group.
This situation will mostly affect producers of feed additives and premixes in Latvia, Lithuania and the Netherlands, which previously accounted for 58-75% of these products in to the Russian market.
The report says that the Russian market experienced mixed dynamic on imported components in the period of 2010-2014. During 2010-2012 it grew by 20%, but starting 2013 it started to fall.
During the last 4 years Latvia's and Lithuania's share of Russia's feed market dropped, while the Netherlands' grew slightly, stated the report, however the report did not mentioning any particular figures.
Also in the opinion of experts during the last year the devaluation of the currency and imported substitution made imported feed components less attractive. A large number of customers are currently searching for alternative suppliers inside the country, or have already found them.
The Russian rouble collapsed nearly twice against the dollar and euro which made all imported feed components and equipment more expensive for Russian agricultural producers.
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