USSEC Conducts Technical Mission in Russia
- General News
USSEC conducted a technical mission at Sodrugestvo, one of the largest European soy crushing facilities, based in Kaliningrad, Russian Federation. During the first week of June, U.S. Soy grower leaders Bob Metz, United Soybean Board (USB) director, and Bill Wykes, American Soybean Association (ASA) director, were invited to lead the mission in supporting and promoting U.S. soybeans.
USSEC local consultant Dr. Maria Domoroshchenkova helped arrange the visit under the coordination of USSEC Regional Director – Europe and Middle East / North Africa (MENA) Brent Babb and USSEC St. Louis staff. USSEC European consultants Dr. Gonzalo Mateos and Dr. Iani Chihaia were invited to join the mission with the goal to provide technical support during the visit and to better understand the customer’s technical needs.
Sodrugestvo was the first Russian private company that saw the potential of the development of the soybean meal market. Originally, business focused on the sales of fodder ingredients, but over the years, Sodrugestvo has acquired the features of a global agro-industrial holding. In a very short period of time, they built impressive oilseeds crushing facilities, logistics, port infrastructure and rolling stock. In the meantime, they quickly developed the market, becoming the largest player today and leaving less room for other soy trading companies at this stage. The company’s goal is to become the first Russian agricultural company to become a global player on the international soft commodities market.
Starting its first crushing plant in 2007 with follow-up facility expansion, Sodrugestvo currently can crush up to 8,500 metric tons (MT) of soybeans per day (up to 2.8 million metric tons (MMT) per year) or 7,000 MT of soybeans and 1,100 MT of rapeseed per day at the Kaliningrad site. The company manufactures a wide range of soy products: soybean meal, soybean oil, white flakes, soy protein concentrate (SPC), soy lecithin, and pelletized soy hulls. The deep-water terminal enables vessel acceptance on pier with capacity up to 50,000 MT.
From 2004 to 2011, Russia was the world’s fastest growing protein industry. Poultry output doubled while its pork output increased 53 percent, with those increases boosting Russia’s soybean business. An increase in Russian livestock production automatically means more a greater need for animal feed and, thus, soybean meal.
The country changed from animal protein to vegetable protein import and a Russian ban on imports doesn't involve feed ingredients. In the current marketing year, Sodrugestvo has contracted more than 350 thousand metric tons (TMT) of U.S. soybeans. Perdue Inc. is one of the leading suppliers of soybeans to Sodrugestvo. Among other U.S. sellers this year are Chicago & Illinois River Marketing/Great Lakes, Gordon Russell, Agrex, Intergrain, and Seaboard.