July 13, 2010

Russia seeks to prevent cattle slaughter amid worsening drought

The Russian government is trying to prevent cattle breeders from slaughtering livestock as a worsening drought cuts into feed supplies by damaging plants and threatens to curb sowing.

Pavel Ipatov, governor of the Saratov region, say that some breeders are "pessimistic" about the outlook for their herds. Tatarstan can provide only half of the three million tonnes of feed grain it was slated to deliver this year, regional Governor Rustam Minnikhanov said.

"Our main task is to keep the livestock and sown areas. The government should provide financial aid to farmers whose crops were wiped out by the drought and extend loans to other affected producers to prevent planted areas from shrinking next year," First Deputy Prime Minister Viktor Zubkov said.

Sixteen regions have declared emergencies because of the drought, which the government has called the worst in a decade. The Agriculture Ministry said yesterday it may cut its forecast for the national grain crop. More than half of planted areas in 11 drought-stricken regions were damaged, according to the national weather service.

Still, no "mass cattle-slaughter" has started yet, Ipatov said as he urged support measures. Prime Minister Vladimir Putin ordered proposals to be drawn up for subsidized sales of stockpiled grain to livestock farmers. Feed grain makes up about 3.5 million tonnes of Russia's 9.5 million-tonne inventory.

Yields in the drought-hit areas will fall at least 30% from last year, according to the weather service. Tatarstan has asked the government for 1 million tonnes of stockpiled feed grain to bridge a gap as production in the region plunges by more than three-quarters. The ministry has predicted a national grain harvest of 85 million tonnes.

Farmers may reduce the area sown with winter grains next season, research centre SovEcon said yesterday. Winter-crop planting along the Volga River, which starts in August, will be affected by the drought because soil moisture levels remain extremely low, it said.

The drought is the worst since records began 130 years ago, according to the Grain Union, representing Russia's largest producers and traders.