January 18, 2013

Due to Russia's development programmes for its poultry and livestock production industries, the country's soymeal demand has increased by 4.5% or 2.35 million tonnes.

The total volume of oilseed meals used in the country may increase by 2.9% to five million tonnes compared to 2011-12 plus additional increases due to the increasing number of poultry in the country. According to domestic programmes the rise in poultry production volume is expected to be 30% by 2020.

"The increase in livestock and poultry production as a result of strong government support and rising domestic demand has yielded consistent growth of the Russian feed sector," noted experts of Oil World. "In particular, the rapid expansion of poultry production has favoured the robust growth of demand for high protein oilmeals in recent years, making Russia increasingly dependent on soymeal."

Russia's soy crop may rise to a record 1.88 million tonnes in the 2012-13 season. Soymeal output was pegged at 1.84 million tonnes in the year that began on October 1, up 5.3% from the previous year, while soymeal imports are expected to decline 4.8% to 500,000 tonnes.

"Despite the larger soy crop, Russia will remain a big importer of soy in 2012-13, owing to the increasing crushing capacity in the European part of the country, which is far away from the main soy producing area of the Far East. Imports of soymeal are forecast to stay high also this season" the reported added.

Experts also forecast that Russia may see "notable growth" in the area planted with oilseeds, with sunflower seed and wheat competing for acreage. Rising demand from Chinese and Korean importers may also boost farmers' incentive to plant soy.