In 2020, feed additive imports by Russia were valued at 40.2 billion roubles ($550 million), which was the highest figure for the previous 5 years.
According to research conducted by the analytical company RNS Pharma, Russia’s feed imports climbed by 10.5% compared to 2019.
The positive dynamics to a large extent is attributed to the rising supply of pets’ products, which added 37% to the previous year’s level. The supply of feed additives for farmed animals increased by 8.6% compared with 2019
– the analysts estimated
In physical volumes, the import of feed additives increased by 6% in packages and 75% in minimum dosage units, as most companies switched to deliver bigger feed additive packages to the Russian market.
The Brazilian Cj Selecta experienced the strongest growth in supplies. A growth of 370% compared to the previous year, RNS Pharma estimated. The company shipped only one product to Russia – soy protein concentrate under the brand name X-Soya 600.
The Belgian Impextraco and the French Ajinomoto Group also boosted supplies to Russia last year. For instance, the Belgian manufacturer has increased the supply of biotin-containing supplement Bipex H2 by a factor of 8 times. The French company has increased supplies of L-lysine hydrochloride 99% Feed Grade by a factor of 3.7 times.
Feed additives import to Russia is growing even despite restrictions introduced by the Russian veterinary body Rosselhoznadzor against major suppliers.
Since 2020, Rosselhoznadzor has restricted import from 12 countries, including the US, Canada, the Netherlands, Germany, UK, and some others, citing GMO and fraud concerns, since multiple laboratory inspections discovered violations in products composition and a presence of unregistered ingredients in numerous imported feed additives.
The Russian feed additives market has reportedly experienced a record spike in prices. For example, Marat Zyabarrov, Agricultural Minister of Tatarstan, estimated that since the beginning of 2020, feed additives have jumped in price by 80%. Alexander Rodionov, a senior specialist at Zinpro Corp, said that the price of protein feed in Russia doubled in 2020.
Sergey Mikhnyuk, executive director of the Russian National Feed Union, however, claimed that the price hikes have nothing to do with Rosselhoznadzor’s restrictions.
“Russia is committed to dialogue with Western regulators. Over the past 6 months, there has been no sharp surge in prices – only small fluctuations of 5-10%. Someone is now preparing the market for the rise in prices and wants to blame Rosselkhoznadzor, which reasonably and in accordance with its responsibilities based on the results of sampling control, first revealed the facts of violations and discrepancies, and only then suspended the import of feed additives,” Mikhnyuk said.
Mikhnyuk added that local distributors, to a large extent, are accountable for the price rises on the feed additives market.