Larger farms foreseen in Russia

03-01-2008 | |

At a preview for the AgroFarm exhibition held at DLG’s headquarters in Frankfurt, some 70 experts and companies presented viable strategies for the Russian animal production market.

A government incentive scheme and favourable costs are key factors behind the
vast investment and economic viability that the animal production sector in
Russia is currently experiencing.

The support of animal production on
home soil in Russia continues to represent a key political objective. The sector
is therefore expected to continue to develop, employing the latest techniques
for efficient production.

The trend is towards bigger farms, and, along
with an increasing dairy production sector, the meat will also be a key focus,
stated Dr. Olga Hunger, DLG’s project manager for Russia.

Demanding
customers
With high quality and service uppermost in their minds, Russian
customers are very demanding, a requirement that should be considered by
suppliers and manufacturers of animal production
technologies.

Furthermore, the focus is on the latest techniques, meaning
that manufacturers should present the latest and most suitable equipment and
models for the Russian market.

Networking amongst business partners in
Russia is also a key success factor so maintenance of a high quality image
through offering best in class products is crucial for long term
success.

New farms, new techniques
According to Russian
experts, Dr. Thomas Tanneberger, editor of Russian based „New Agriculture” and
Stefan Dürr, President of EkoNiva and Friedrich Falkenstein from Maratec GmbH
who were speaking at the event, ex-collective farms tend to employ simpler
techniques at lower cost, whereas the newer farms require the most recent
techniques with significant investment behind them.

If a business
succeeds in being included in the government incentive scheme, it also benefits
from improved image, attracting political support.

Once government
investment support has been achieved, it is also worth investigating which
schemes are available at the regional level.

Sound business results and
fair salaries are just some of the key criteria. A minimum equity of 20% is a
further requirement to be eligible for a government-supported loan but other
investment opportunities, for example in dairy production, can be equally
rewarding.

AgroFarm exhibition
AgroFarm 2008, the International
Exhibition for Animal Husbandry Breeding, will be held in Moscow from 24 to 26
April 2008.

Some 120 exhibitors from 11 countries presented modern
genetics as well as livestock-keeping and feeding technology for pigs, cattle
and poultry at the first edition in 2007. some 6,800 visitors from all parts of
Russia came to the exhibition.

Related website: AgroFarm 

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