January 4, 2008

Favourable market climate to spur larger livestock farms in Russia

Government incentive scheme and reasonable costs are the deciding factors for vast investments on livestock farms in Russia, industry experts pointed.

Around 70 trade experts and companies presented viable strategies for the Russian animal production market during the preview of the AgroFarm exhibition held at DLG's headquarters in Frankfurt.

Olga Hunger, DLG's project manager for Russia, said that the trend is leading to bigger farms and an expanding dairy production, pointing to the meat sector as the key focus.

Latest techniques most suitable to the Russian market could push the livestock industry forward as this will ensure production efficiency and up total output.

Furthermore, networking among business partners was also highlighted to generate positive interaction and to ensure that the success of the revitalized livestock industry is long-term.

Government support for animal production is indispensable, the experts said. A minimum equity of 20 percent is a requirement to be eligible for a government-supported loan.

Once these government support schemes are tested, they could be made available at the regional level.

Thomas Tanneberger, editor of Russia's New Agriculture, and Stefan Durr, President of EkoNiva and Friedrich Falkenstein from Maratec GmbH consider ex-collective farms to employ simpler techniques at lower cost. Both think that newer farms require the most recent techniques with significant investment needed.

AgroFarm 2008, the International Exhibition for Animal Husbandry Breeding, will be held in Moscow from April 24 to 26, 2008.