February 13, 2007

Russia to focus on feed grain production
 

Russia's production of major grains in 2006 was up very slightly compared to 2005 despite a contraction in area planted and harvested, says a US Department of Agriculture report.

Russia produced 78.4 million tonnes of grain in 2006. Wheat production was estimated at 44.9 million tonnes, down 5.8 percent from the previous year. Barley production reached 18.1 million tonnes  while that of corn increased to 3.6 million tonnes, 13 percent up from 2005.

In Jul-Dec, 2006, Russia exported almost 7.5 million tonnes of grain, including 6.7 million tonnes of wheat and 700,000 tonnes of barley.

Experts do not forecast significant grain exports in the remaining months of MY 2006, since domestic prices for feed wheat and feed barley are attractive, says the report.

The Ministry of Agriculture is placing greater emphasis on feed grain production in support of the national priority project for accelerated development of the livestock sector, resulting in expansion of area under corn for grain as well as feed barley and pulses, according to the report. Russian farmers are being urged to invest in poultry and livestock operations, particularly swine.

Increasingly, farmers understand that investments will pay off if feed conversion ratios and the structure of rations are improved. Demand for feed has thus increased, and domestic prices of feed grains remain high.

For the full USDA report, please click here