Russian soy producers raise concerns over soy imports from Argentina

Concerns associated with covert imports of 25,000 tonnes of Argentine soymeal by OJSC United Grain Company, are brewing in the Russian soy market.

The company plans to import the product on a regular basis and deliver it to poultry farms, livestock enterprises and mixed fodder plants of Krasnodar Krai. The company considers that it will rescue the domestic animal breeding industry in the difficult situation with the deficit of mixed fodders and feed grains volumes on the market.

At the same time, the domestic Kuban producers of soy wrote the open letter to the Governor of Krasnodar Krai with an appeal to protect them from actions of United Grain Company. They note that the company liquidates all stimulus for development of the soy industry in the region. Argentine soymeal is produced from GM soy, but the problem of resistant weeds may affect the local harvest. Farmers are afraid that the company will make the domestic livestock industry highly dependent on imported soymeal.

The price of import soymeal from Argentina, coming to the country on March 2, was reported to total RUB19,600/tonne (US$677). Representatives of the United Grain Company declined to comment on the import.