May 22, 2012

Russia's soy market volume to rise twofold

The Russian Federation's soy market volume will increase about twofold over the next five years, reported the Executive Director of TH Sodrujestvo, Sergei Sokolovsky.

According to him, this will happen due to the significant growth of the Russian meat and poultry by 2020, an increase in domestic soy production due to stable domestic demand, high and predictable marginality, the attention of the government towards the development of soy market in Russia.

The expert noted that in 2011 Russia harvested a record 1.75 million tonnes of soy. In general, the production of soy has nearly in three times over the past five years. Consumption of soy has also increased in three times over the past five years - up to 2.84 million tonnes in 2011.

Sokolovsky also said that the existing capacity of oilseed processing facilities in Russia was 13.2 million tonnes, almost equal to the production of oilseeds in 2011.

Speaking about Russia's accession to the WTO, the expert noted that this will lead to cancellation the import duties on rapeseeds and soymeal in 2013 year and reduction of the import duty on sunflower seeds to 2.5%, as well as the complete abolition of export tax on soy to 2016 and its reduction to 6.5% within four years for rapeseeds and sunflower seeds.