Russia’s growing feed industry’s long-term demand could provide great opportunity for U.S. Soy
Although market access has temporarily halted U.S. soy imports, the Russian market holds high potential for the import of U.S. commodity grade soybeans that could be crushed by local mills, and so USSEC continues to build and reinforce relationships in Russia.
The country’s compound feed industry ranks among the top ten feed-producing nations in the world, after a decade that saw accelerated growth. The Russian Feed Manufacturers Union estimates that by 2025, the production of compound feed in Russia is forecasted to exceed 40 million metric tons (MMT), of which 22 million tons will be intended for poultry, 13.7 million tons for pigs, 3.8 million tons for cattle and 1.5 million tons for other animals.
USSEC recently took part in the XIVth international conference, "Trends in the Production of Compound Feed for the Effective Development of Animal Husbandry: Realities And Strategy,” commonly referred to as “Mixed Feeds 2020,” one of the main feed industry events organized annually in Moscow by the International Industrial Academy in conjunction with the Russian Feed Manufacturers Union and All-Russian Research Institute of the Compound Feed Industry. USSEC also provided sponsorship support of this event. Due to COVID-19 travel and communications restrictions, this conference was held in a hybrid format, both online and in-person, for the first time.
More than 110 representatives from 15 regions of Russia and 5 foreign countries, including top managers from regional livestock and agricultural integrations, chief engineers, production managers, specialists from integrated and independent companies, engineering companies, university professors, research institutes, feed and livestock industry associations, and agricultural media attended the conference. Media support for the event was provided by the SoyaNews agency and by a number of leading Russian feed industry magazines such as Compound Feeds, Forage Production, Livestock in Russia, Pig Breeding, Perfect Agriculture, Efficient Livestock Breeding, and Veterinary Medicine and Feeding.
Academician Vyacheslav Butkovsky, president of the International Industrial Academy, opened the conference, speaking about the state of development of the domestic feed industry. In his live speech, Dr. Valery Afanasyev, president of the Russian Feed Manufacturers Union, focused on the current state and development trends of Russia’s feed industry.
Following the growing interest of customers regarding new feed market trends and feed ingredients, USSEC consultant Dr. Iani Chihaia presented “Fermented Soybean Meal – a Multi-Purpose Ingredient.” USSEC local consultant Dr. Maria Domoroshchenkova provided simultaneous translation into Russian. Chihaia’s presentation focused on how and why the fermentation technology and FSBM was developed, adopted and market size; why FSBM should be a substitute for conventional protein ingredients; and the aspects related to quality, feeding recommendation, and economics of FSBM.
The USSEC presentation helped to increase end-user and consumer knowledge on the benefits of U.S. Soy and U.S. soy products among Russian end-users. The USSEC consultants generated interactions with participants, largely due to the particular interest in fermented soybean meal and its proper application. The long-term professional relationships of the USSEC consultants with Russian industry members facilitated discussions.
USSEC proved to have the capabilities to assist Russian customers on sourcing U.S. soybeans and understanding fermentation technology. Although no U.S. soybeans are currently imported in Russia due to market barriers, follow up with customers and building relationships with key market players should help in resuming exports to one of the world’s largest markets.