Russia is 100% dependent on the import of the most effective feed additives – National Feed Union – Russian Grain Union

The National Feed Union – Russian Grain Union believes that the situation with the increase in the cost of a number of feed additives in the country is artificially created, as a result of which domestic producers of livestock products are already suffering significant losses.

The experts of the Russian Grain Union specify that today the raw material component, the so-called commodities, has mainly increased in the price of compound feeds. That is, the main components of compound feeds are the grain group, the protein group, and feed additives, conditionally classified as raw materials, primarily amino acids produced by an industrial method.

When asked what farmers should prepare for in connection with the crop failure in many regions of Russia, the National Feed Union – Russian Grain Union replied that the professional field of view of the union is currently limited to the framework of compound feeds and their components – premixes and feed additives. In addition, in the near future, the National Feed Union – Russian Grain Union should turn into an independent Russian analogue of the European Union FEFANA. 

- To be more precise, we have been trying to become such a union for the ninth year, -the National Feed Union – Russian Grain Union reported. - Therefore, we are not so deeply immersed in the details of production processes and feed production in the country as a whole. This is rather the prerogative of the main regulator - the state. However, we are not sure that the officials are monitoring this to the necessary extent. In any case, the National Feed Union – Russian Grain Union does not receive such analytics fr om any official state source. 

The National Feed Union – Russian Grain Union stressed that for some time now, domestic farmers do not have so many options for choosing animal feed components. Due to the massive import restrictions by veterinary services, the Russian market of feed additives is shrinking like shagreen leather, while in Europe more than a thousand names are offered on this market, a significant part of which does not reach Russia even for registration stage. 

- The farmers’ feed includes forage, roughage and biologically active components - feed additives: vitamins, trace elements, enzymes, etc.,- said the National Feed Union – Russian Grain Union. - As for own production of the grain group, this is quite a reasonable source of additional marginality, otherwise the details and specifics of the business are important. What a chicken or a pig needs as air is of no importance in feeding cattle and vice versa. 

Moreover, the vast majority of developed Western countries deliberately do not develop relatively "dirty" chemical and biochemical production of their own feed additives, and even vice versa - they reduce the available capacities, compensating for the lack by investing in joint projects in the territories of South-Eastern countries, mainly in China, India and others. Currently, this is also happening with feed vitamins, amino acids, trace element salts, fatty acids, and so on.

Regarding the changes in feed prices due to crop failure in a number of regions, the National Feed Union – Russian Grain Union explained that the union specializes in feed additives and premixes, which "have some dependence on the yield of plant raw materials, for example, amino acids, but only indirectly." Such an analysis is probably carried out by "related unions" - poultry farmers, pig farmers and others. 

The expert called the question of where agribusiness will buy the missing feed ingredients the most relevant.

- Any artificial restrictions against the background of the lack of commercial expertise and forecasting, at least in our field, wh ere almost 100% is imported, already bring billions of dollars in losses to Russian agricultural holdings, which are among the world's top 100. We are talking about tens of billions of rubles of losses in the cost of production, and this figure, if we do not take vigorous measures, will grow in a year or two for our producers of milk, meat, eggs and other livestock products by an order of magnitude.

As emphasized in the National Feed Union – Russian Grain Union, among the products produced by the members of the union, almost all "are subject to artificial overestimation of value due to artificially created barriers at the borders and by monopolies." 

‘This is a threatening trend for the entire agricultural sector,’ the National Feed Union – Russian Grain Union stressed. ‘We see already cartel collusions and the elimination of competitors. We remind that Russia is 100% dependent on the import of the overwhelming number of the most effective feed additives. However, in the absence of real feedback and the unwillingness of a constructive dialogue on the part of the regulator, the largest global suppliers are only forced to adjust the risk levels and assortment for Russia and reduce investment programs. 

Earlier, The DairyNews wrote that the Rosselkhoznadzor discussed the situation around the import of foreign feed to Russia with industry unions.