Newly appointed Russian agriculture minister, Dmitry Patrushev, said the government intends to make the feed industry one of its priorities as it looks to develop the country’s agricultural sector over the coming years.
Such industry support, according to Patrushev, will take the form of subsidies, both direct and indirect. The amount of cash payments to be given out under those subsidies, though, has not yet been disclosed. The majority of them are targeted at small and medium-sized enterprises.
Resource Group of Companies
As a result of the ongoing recovery of the Russian economy, several of the larger Russian feed producers are now in the process of implementing previously suspended investment projects.
The Resource Group of Companies, Russia’s third largest producer of poultry meat, reportedly plans to increase its capacities for the production of feed by 30% this year.
Last year the group increased the production of feed by 200,000 tons to over 900,000 tons.
At present, the company operates six feed mills, including a site on the Inzhavinskaya poultry factory complex, recently purchased from local competitor, Prioskolya.
Miratorg, the largest producer of pork and beef in Russia and the second largest feed producer in the country, also has plans to increase its feed production capacities this year.
With its planned increase of pork production by up to one million tons in live weight per year, the volume of its total feed production will also need to increase.
Russia increased its feed production by 19% from 2016 to 2017, manufacturing 37.6 million tons, according to the latest Alltech global feed survey.
Indeed, Miratorg has just announced the construction of a hi-tech feed mill in the Oryol region, which will have an annual capacity of 800,000 tons, when it is operational at the end of 2019, said the company.
Another major player in the Russian meat and feed markets, AgroPromkomplektatsia, has also announced its plans to significantly expand its feed mill division this year.
The company is building a second plant for the production of feed in the Kursk region with a capacity of 216,000 tons of per year, which will include a line of pre-starter feed with the capacity of 5 tons per hour for piglets. It already operates a feed mill of the same capacity in that region. In addition, it operates a plant in the Tver region, which has the capacity to produce 168,000 tons of feed per year.
In 2017, AgroPromkomplektatsia produced almost 389,000 tons of feed, a jump of 80,000 tons on its volumes in 2016.
Another leading feed company, Agroeco, has revealed it will build a second feed mill with a capacity of 25 t/h this year, including a 5 t/h line for pre-starter feed.
That manufacturer increased production of feed by 20% to 280,000 tons in 2017.