MIXED FODDER PRODUCTION
In the past few years the trend towards an increasing mixed fodder production has prevailed in Russia. The increase in the mixed fodder output is related to the growth of solvent demand of the most important livestock-breeding sectors and is therefore directly connected with the development of livestock breeding in Russia and the level of investment in this sector.
As compared to the 2006 indicators, the 2007 output of mixed fodder increased by 10% in kind and 80.55% in terms of money.
The main mixed fodder consumer is the dynamically developing poultry-raising sector. It is the main engine of the mixed fodder production in Russia. Following poultry-raising in decreasing order is the production of fodder for pigs and cattle.
The share of mixed fodder output for poultry constituted 56.41% in kind and 62.13% in terms of money.
Mix fodder output structure in Russia (in kind)
The largest outputs of mixed fodder were produced in Leningrad and Belgorod provinces, in Krasnodarsky Territory, and in Moscow and Chelyabinsk provinces. The aggregate share of mixed fodder output produced in the five leading regions in 2007 constituted 40% in kind.
In 2007, the volume of mixed fodder output in Ukraine increased by 6.5% against the 2006 level and by 78% in terms of money.
In 2007, the mixed fodder output structure remained the same. As before, the maximum share fell on mixed fodder for poultry (56% in kind and 61.97% in terms of money).
Mix fodder output structure in Ukraine (in kind)
There are about 120 mixed fodder manufacturers operating in Ukraine. Its production capacities permit to produce 12-15 million tons annually, but their utilization constitutes only 30-35%. The leading mixed fodder producers are the Mironovsky Groats and Mixed Fodder factory (Kiev Province), the Agromax Complex – a branch of Kievkombikorm (Kiev Province), the Borispolsky Mixed Fodder factory (Kiev Province), the Tavrian branch of the Mironovsky Groats and Mixed Factory (Kherson Province) and Feonis (Donetsk Province).
The top ten manufacturers account for 28% of the total output.
As compared to 2006, the volume of output increased by 6.73% in kind and 86.48% in terms of money.
The largest share in the volume of output belongs to mixed fodder for poultry (59.92% in kind and 65.27% in terms of money), next comes mixed fodder for pigs (21.91% and 19.88% respectively) and cattle (18.17% and 14.85% respectively).
Mix fodder output structure in Belarus (in kind)
During the past year, the volume of import increased by 30% in kind and 111.6% in terms of money as compared to the 2006 indicators.
In 2007, the mixed fodder import structure did not change dramatically. As in the previous reporting periods, the largest share of import fell on mixed fodder for pigs. Its share in total imports was 66.39% in kind and 62.43% in terms of money. In 2007, the share of mixed fodder import for poultry was equal to 33.61% in kind and 36.57% in terms of money.
The total share of import by eight leading mixed fodder supplier companies constituted 88.49% in kind and 87.98% in terms of money.
In 2007, small consignments of mixed fodder were supplied into Russia from the Netherlands. The volume of import from that country amounted to 32.96% in kind and 32.05% in terms of money. Substantial mixed fodder consignments were also supplied to Russia from Germany, Finland, Lithuania, France and Hungary.
In 2007, the aggregate share of the six leading mixed fodder supplier countries constituted 98.24% in kind and 98.34% in terms of money.
As compared to the 2006 indicators, the volume of mixed fodder import into Ukraine dropped by 10.5% in kind and grew by 44% in terms of money.
In 2007, Ukraine imported only mixed fodder for poultry (32% in kind and 27.55% in terms of money) and pigs (68%).
The aggregate share of the seven leading mixed fodder suppliers was equal to 94.78% in kind and 86.83% in terms of money.
The largest mixed fodder consignments arrived in Ukraine in 2007 from Poland. The share of import from that country constituted 69.48% of total imports in kind and 65.6% in terms of money. The largest suppliers were Germany, Belgium, the Netherlands and Hungary.
The volume of mixed fodder import into Ukraine from the five leading supplier countries was equal to 98.75% in kind and 91.45% in terms of money.
Within the framework of the Mixed Fodder Industry Development Program in the Republic of Belarus, the State strives to meet the country’s requirements in fodder on its own. There is a sufficiently extensive network of public enterprises producing mixed fodder. At present, a considerable part of feedstock, especially protein components, fodder additives and preparations are imported from abroad. Besides cereals, about half a million tons of maize are processed for purposes of mixed fodder production.
The further growth of mixed fodder production volume is constrained by insufficient supply of local feedstock – dry milk and animal fodder, grain of legumes, rape-cake, grass meal, fodder yeast and other non-cereals feedstock as well as grain, which is left on the farms as livestock fodder and used by many farms as it is, without enrichment.
The import of mixed fodder into Belarus is insignificant, and for this reason it will not be reviewed in this analysis.
MIXED FODDER EXPORT
In 2007, the volume of mixed fodder export increased by 171.45% in kind and 276.61% in terms of money as compared to 2006.
External trade in mixed fodder with Russia’s participation as an exporting party does not actually exist. The export of mixed fodder and other products used as animal fodder from Russia is very insignificant and generally has no effect on the market volume.
In 2007, the largest share of exported mixed fodder fell on mixed fodder for pigs (88.86% in kind and 88.3% in terms of money).
The largest 2007 mixed fodder exporter was the Starooskolsky Bread Baking Mills OJSC in Belgorod Province. That enterprise accounted for 79.54% of the total mixed fodder export. In 2007, the main sales markets were the CIS countries as before.
Ukraine
In 2007, the volume of mixed fodder export from Ukraine grew by 269.42% in kind and 82.4% in terms of money as compared to similar 2006 indicators. At present, there are no serious grounds to count on any significant increase in mixed fodder export in future. Grain and electricity are expensive in Ukraine, and the technological base of most Ukrainian mixed-fodder factories is rather outdated.
The structure of the mixed fodder export is rather unstable. While in 2006 mixed fodder for cattle accounted for 91.46% of export in kind and 88.84% in terms of money, in 2007 that structure changed essentially.
In 2007, the mixed fodder export structure was as follows: mixed fodder for poultry accounted for 32.21% in kind and 37.96% in terms of money, the share of mixed fodder for pigs was 33.46% in kind and 31.89% in terms of money, and the export of mixed fodder for cattle constituted 34.33% in kind and 30.15% in terms of money.
In 2007, the aggregate share of mixed fodder export by the five leading exporters constituted 98.17% in kind and 91.06% in terms of money.
The volume of mixed fodder exported from Belarus is negligibly small and therefore has no impact on the market volume.
Russia
Last year the mixed fodder market volume increased by 9.91% in kind and 80.85% in terms of money.
In 2007, the share of mixed fodder output in the total market volume constituted 99.84% both in kind and in terms of money.
The share of export in the mixed fodder output is insignificant as well as the share of import in the mixed fodder market volume.
In 2007, the volume of the Ukrainian mixed fodder market increased by 6.3% in kind and 77.57% in terms of money. The growth of the market volume in terms of money was due to a considerable rise in prices on mixed fodder both in the domestic and external market. In 2007, the mixed fodder output surpassed the market volume by 1% in kind and 0.6% in terms of money. The share of export in the mixed fodder output is insignificant as well as the share of import in the mixed fodder market volume.
In 2007, the mixed fodder market volume was formed due to domestic production. Both the import and the export of mixed fodder were too insignificant to influence the market volume.
The mixed fodder domestic markets in Russia, Ukraine and Belarus exhibited rather a low purchasing ability of most consumers (and in addition - a low demand from the private sector) against the background of a significant excess of production capacities over consumption.
The mixed fodder markets in the reviewed states displayed an obvious trend towards increasing demand for complete feed. A characteristic feature of development of this segment of the agro-industrial sector is an almost complete absence of mixed fodder export. The market is very sensitive to changes in supply and prices on cereals and protein cake.
