Russia to double soy production over next five years
The market capacity of soy production in the Russian Federation will almost double over the next five years, this is according to the executive director of LLC "Trade House Sodruzhestvo" Sergei Sokolovsky, who was speaking at a conference on soy production in Yalta.
Sokolovsky said that the increase will happen mostly due to the significant growth of Russian’s meat and poultry industries up to 2020. Thus, an increase in domestic soybean production will happen due to stable domestic demand, high and predictable margins and the government’s aim to development Russia’s soybean market.
In general, the production and consumption of soybeans over the last 5 years has tripled. Farmers collected a record amount of 1.75 million tonnes of soybeans in 2011. Consumption went from 0.95 mln tonnes in 2009 to 0.84 million tonnes in 2011.
Sokolovsky also pointed out that the existing capacity of oil-bearing processing facilities in the Russian is estimated at 13.2 million tonnes, which is almost equal to the production of oil-bearing crops in 2011.
At the same time, experts predict that Russia's accession to the WTO will in the future open the door for the export of soybeans - primarily to Europe and the Middle East. With regard to Russia's entering to WTO, Sokolovsky noted that this will lead to the cancellation of import duties on canola and soybean meal and a reduction of import duties on sunflower seeds to 2.5% by 2013. As well as the complete cancellation of export tax on soybeans until 2016 and reduce it for rape and sunflower seeds to 6.5% within 4 years.
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