The Russian soy market is growing steadily due to investment in the domestic poultry and swine industries and growth in the soybean industry’s crushing capacity.  According to the U.S. Census Bureau, soybean exports from the U.S. to Russia from January to June 2014 have increased nearly 600 percent by volume and more than 700 percent by value compared to the same period in 2013.  Russian Customs Service data shows that soybeans from the U.S. reached 393,000 metric tons (MT) from September 2013 to April 2014.  By comparison, exports of U.S. soybeans to Russia were 272,161 MT for the entire year in 2013.
USSEC activities in Russia are focused on trade servicing and technical assistance to local crushers, feed millers, and poultry and livestock producers.  Training includes feed formulation, best management practices, and buying skills.  As a result of USSEC’s training, feed quality and productivity has improved and customers understand the advantages of using U.S. soy.
The international agro-industrial group Sodrugestvo is a powerhouse in the Russian soy industry with its state-of-the-art, multi-model logistics and oilseed processing facilities in the Kaliningrad region of Russia.  In 2013, the total crushing capacity of three Sodrugestvo Kaliningrad plants reached 8.5 thousand metric tons (TMT) of soybeans per day with the total potential throughput of 2.8 million metric tons (MMT) of soybeans per year.  The company currently crushes up to 7,000 MT of soybeans and 1,100 MT of rapeseed per day.
Today, Sodrugestvo is the largest soybean importer and crusher throughout the Commonwealth of Independent States (the former Soviet Union).  The Kaliningrad site ice-free marine terminal has several piers equipped with machines that unload soybean vessels 30,000 MT DW and could handle vessels up to 50,000 MT dry weight (DW).  Perdue Grain and Oilseed Ltd., LD Commodities Oilseeds Merchandising LLC and ZENNOH Grain Exports were the principal suppliers of U.S. soybeans during the last marketing year.
USSEC is building a long-term relationship with Sodrugestvo to continue developing soybean demand by sponsoring technical trainings and providing regular technical and market assistance and consultancy.  Sodrugestvo managers and specialists participated in USSEC trade teams attending the leading soy-related international conferences, exhibitions and technical seminars.  Russian customers have learned to appreciate the higher protein level of U.S. soybeans versus domestically produced soybeans.  Crushing imported soybeans allowed Russian companies to manufacture Hi-Pro soybean meal.
USSEC will host the top three managers from Sodrugestvo at the 2014 U.S. Global Trade Soy Exchange in Milwaukee.