March 14, 2011

Russian regions' feed grain demand beats offer thrice

The Regions of the Russian Federation provided rather large number of applications for feed grains from the intervention fund, exceeding the volumes of available grains by three times.

The intervention fund stores 2.3 million tonnes, but Russian regions have demand of 6.5 million tonnes, declared Sergey Levin, General Director of OJSC United Grain Company, on March 9. According to him, the disbalance of offer and demand requirements is the main problem.

As a reminder, the Russian government plans to realise all available feed grain volumes of the intervention fund- 2.3 million tonnes - to cattle-breeding enterprises, combine fodder plants etc. Elena Skrynnik, Minister of Agriculture of the Russian Federation, marked that cattle-breeding enterprises and combine fodder plants of the country will purchase feed grains of the intervention plant at the price below 1.5 times compared to the current market price, or down RUB1,000/tonne (US$35.01).