Influence of the feed additives market on the growth of livestock in Russia

Continuously growing meat production in Russia since 2006th helps to actively develop and earn suppliers of resources for meat production. «Megamix» – is a new big player on the premix market. The company controls 30% of the premix segment and claims the first place in Russia. In the last four years company’s earnings have doubled to $110 million. In the interview to “Agro-investor” Sergey Vlasov, co-owner of the Megamix holding talked about the company’s plans to increase production capacity and build the facility in the Western Europe.

According to Sergei Vlasov, Russia will never produce all of the necessary components of the feed.

“Firstly, it is economically impractical. Today, the world market for the production of feed additives is two or three European countries and China. At the same time, 99% of the world market is not worried that they don’t produce all those components. Some are manufactured by Germany, France, and Switzerland. They and China provide the entire world demand for feed additives. Methionine and lysine are produced in Russia, and it may well be that in coming years we will see one or two more components necessary for the production of animal feed, which will be localized in our country. If we are talking about the production of certain feed additives, then the market is full of them today. China alone can cover the entire need of our country in feed additives, including vitamins».

According to the expert, the “Weight” of imported ingredients in the cost of the premix is 86% of its price. In such conditions, the price formula is highly dependent on the policy of currency regulators and the financial markets. At the same time, we must not forget that the prices for ingredients often also show significant growth and the prices for premix also changes. It is likely that the feed market will grow at the same rate as the consumer that is, livestock.

At the moment there is a certain closeness of the country from external markets. Livestock breeding is successfully developing, and this trend is likely to continue. The swine and cattle market has a serious potential in Russia.

Source: Agroinvestor

24.05.2017