April 3, 2012

Animal feed protein demand decreases in Russia

Demand for animal feed protein in Russia lowered by 2% to 180,000 tonnes from 184,000 tonnes between 2007 and 2011, according to BusinesStat's "Analysis of feed protein market in Russia".

From 2007 to 2008 there was an increase of 13.9% - which at the time was the highest growth in 10 years. The main reason for the growth was an increase in the volume of exports, 19% compared to 2007.

However, during 2009-2011, there was a significant decline in demand for animal feed protein, mostly due to an increased demand for feed protein substitutes. The main competitors being soy and sunflower meal, and fishmeal.

Currently animal feed protein in the Russian market is almost completely purchasing through insider trading. In 2007-2011, domestic sales averaged at 76.2%, exports did not exceed 24% varying from 33,600 tonnes to 60.5 thousand tonnes per year.

The animal feed protein with the largest share of the Russian sales market has natural protein concentrate of methane fermentation. In 2011 protein concentrate sales amounted to almost 90% (117,000 tonnes) of the total sales of protein feed. Fodder yeast was second at 8% (10,300 tonnes). Feed bacteria sales in 2011 did not exceed 3% (3,400 tonnes). Russia mainly imports protein concentrate. In 2011, the volume of imports amounted to nearly 123,000 tonnes.