Russia’s poultry sector growth hikes soybean meal demand

Programmes undertaken by the Russian government to develop the country’s poultry and livestock production industries has resulted in the increase demand for soybean meal, which is used in animal feed. With an expected hike of 4.5% – 2.35 million metric tonnes.

The total volume of oilseed meals used in the country may increase by 2.9% to 5 million tonnes compared to 2011/12 plus additional increases due to the increasing number of poultry in the country. According to domestic programmes the rise in poultry production volume is expected to be 30% by 2020.

“The increase in livestock and poultry production as a result of strong government support and rising domestic demand has yielded consistent growth of the Russian feed sector,” noted experts of Oil World. “In particular, the rapid expansion of poultry production has favoured the robust growth of demand for high protein oilmeals in recent years, making Russia increasingly dependent on soybean meal.”

Russia’s soybean crop may rise to a record 1.88 million tonnes in the 2012-13 season. Soybean meal output was pegged at 1.84 million tonnes in the year that began on October 1, up 5.3% from the previous year, while soybean meal imports are expected to decline 4.8% to 500,000 tonnes.

“Despite the larger soybean crop, Russia will remain a big importer of soybeans in 2012-13, owing to the increasing crushing capacity in the European part of the country, which is far away from the main soybean producing area of the Far East. Imports of soyameal are forecast to stay high also this season” the reported added.

Experts also forecast that Russia may see “notable growth” in the area planted with oilseeds, with sunflower seed and wheat competing for acreage. Rising demand from Chinese and Korean importers may also boost farmers’ incentive to plant soybeans.