June 25, 2012
Russian compound animal feed import tax may rise threefold
Russia is mulling over increasing import duties on compound animal feed by threefold while placing a zero import duty on raw materials to help the nation's animal feed sector.
The issue of Russian dependency on imports of premixes and protein, vitamin and mineral concentrates was raised again at the recent conference "Cattle feeding base-2012". The Russian Union of Feed Producers together with the Russian Grain Union appealed to the government and the Ministry of Agriculture to act.
The government put forward a proposal of introducing zero import duties on raw materials (vitamins and amino acids), while tripling import duty for finished products (protein, vitamin and mineral concentrates, premixes and compound feed) from 5% to 15%. According to experts such a measure would double the volume of output of such products in Russia.
Russia has a deficit in raw materials at the moment and production capacity is very low. "The total production capacity currently being achieved of protein, vitamin and mineral concentrates and premixes can, at the very least, be doubled", the president of the Russian Union of Feed Producers, Valery Afanasyev, said.
He went on to say that all compound feed manufacturing plants are currently operating on a one work shift basis. "This means, that a two work shift basis would easily allow production to be increase by 50%." Afanasyev said.
According to statistics, last year the production of protein, vitamin and mineral concentrates amounted to 178,300 tonnes, up 125.6% compare to 2010. Production of premixes reached 106,500 tonnes. This is an increase of 124% compare to the previous year. The share of imports in both markets is currently estimated at 75-80%. With the introduction of the proposed import duties, it may be reduced to 30-40%.