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News last update:14 Jan 2016

Russia to allocate funds for livestock feed

Russian Ministry of Agriculture is going to allocate 15 bln rubles (US$ 500 mln) for livestock producers in the form of subsides for purchasing feed, announced the Minister Nikolai Fyodorov recently.

He also pointed out that Ministry of Agriculture is currently working on measures aimed at creating conditions for the development of animal husbandry in the country. Among the most pressing issues and challenges that the industry facing now, the Minister called for the successful completion of wintering cattle to prevent the fall in the amount of stock due to significantly rising price of feed. In the opinion of the Minister the support of producers in the area of feed purchasing will also create necessary conditions for the increasing of the production indicators of meat industry during 2013.

To support producers, according to him, it has already carried out the sale of feed grain from the intervention fund on lower prices. At the same time, the Ministry of Agriculture plans to compensate the losses that meat producers are suffering after  purchasing expensive feed, an amount of 15 billion rubles (US$ 500 mln).

At the same time, government spending seems quite justified, as livestock producers in the country continue to experience hard times. Due to the drought last summer and a substantial reduction of grain, the prices for feed in the country rose by 30-60% depending on the region.

As a result, many manufacturers found themselves on the brink of bankruptcy. Subsidies allocated by the state in the view of experts of the Ministry of Agriculture of the country will allow farmers to survive the unfavourable year.

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