March 22, 2013

Russia's Ministry of Agriculture will be allocating RUB15 billion (US$500 million) worth of subsidies for livestock producers to purchase feed.

This was recently announced by Russia's Agriculture Minister Nikolai Fyodorov. He also pointed out that Ministry of Agriculture is currently working on measures aimed at creating conditions for the development of animal husbandry in the country.

The Minister called for the successful completion of wintering cattle to prevent declining feed prices. In the opinion of the Minister, the support of producers in the area of feed purchasing will also create necessary conditions for the increasing of the production indicators of meat industry during 2013.
        

According to Fyodorov, the ministry has already carried out the sale of feed grain from the intervention fund on lower prices, in order to support producers. At the same time, the Ministry of Agriculture plans to compensate the losses that meat producers are suffering after purchasing expensive feed, in the amount of RUB15 billion (US$500 million).

At the same time, government spending seems quite justified, as livestock producers in the country continue to experience hard times. Due to the drought last summer and a substantial reduction of grain, the prices for feed in the country rose by 30-60% depending on the region.

As a result, many manufacturers found themselves on the brink of bankruptcy. Subsidies allocated by the state in the view of experts of the Ministry of Agriculture of the country will allow farmers to survive the unfavourable year.