The year 2006 was marked by a sharp rise in prices on fish flour, which entailed an increase in prices on other fodder of animal origin. In 2007, the situation in the market stabilized and prices went down, so the decrease in the 2007 market volume in terms of money can be considered relative.

Production of fodder of animal origin

Russia

As compared to 2006, production of fodder of animal origin increased by 11.74% in kind and decreased by 2.55% in terms of money.

In 2006, there was a sharp increase in prices on fish flour, which entailed a rise in prices on other fodder of animal origin. In 2007, the situation in the market stabilized and prices dropped, so the decrease in the 2007 market volume in terms of money can be considered relative.

Ukraine

In 2007, two main kinds of fodder of animal origin were produced in Ukraine: meat-and-bone meal and fish flour. As compared to similar 2006 indicators, the market grew by 5.1% in kind and 0.4% in terms of money.

The Ukrainian fish industry is in the state of a deep recession. Since independence, the share of the national output of fish products in the domestic market decreased from 80% to 20%.

Production of meat-and-bone meal in Ukraine is also small due to inefficient operation of slaughterhouse waste utilization plants (one of the main reasons being a shortage of fuel and lubricants, which does not permit them to operate at full capacity).

In 2007, the share of fish flour in the total output of fodder of animal origin was 36.74% in kind and 64.4% in terms of money. Fish flour output increased by 4% in kind. The share of meat-and-bone meal was at the level of 63.26%.  The output of meat-and-bone meal was up by 5.75% in kind.

Belarus

The volume of output of fodder of animal origin in Belarus is very small. As compared to 2006, the output increased by 14.9% in kind and 5.7% in terms of money.

In 2007, the share of fish flour in the total output constituted 11.4% in kind, and the share of meat-and-bone meal was equal to 88.6%.

Import of fodder of animal origin

Russia

In 2007, the volume of import of fodder of animal origin for livestock needs went down by 50.19% in kind and 31.11% in terms of money. The structure of import of fodder of animal origin changed substantially. No meat-and-bone meal, blood meal and feather flour were imported into Russia. As for the latter two, their share was insignificant in the previous periods as well.

Russia has suspended the import of meat-and-bone meal for the time being. One of the reasons is that the Federal Service for Veterinary and Phytosanitary Surveillance is apprehensive of a possible penetration of meat-and-bone meal containing causative agents of the bovine spongiform encephalopathy from EU countries. As a result of this, in 2006 the output of meat-and-bone meal increased in Europe considerably, and its export grew by 150%. According to EU standards, slaughterhouse waste processing products can only be used for feeding dogs, cats and fur-bearing animals and as a fertilizer.

Most Russian meat producers throw away slaughterhouse by-products, which constitute up to 50% of the live weight. However, those that have started to sell or process bones, internal organs, fat and even blood of farm animals unfit for alimentary consumption, state that such waste-free production if profitable. It is sufficient to arrange the sale of the so-called waste or open one’s own shop and add these by-products to fodder to raise the profitability of meat production by at least 5%.

In 2007, fur farmers in central regions, for the first time since the collapse of the USSR, could provide their farms with fodder without any import thanks to the fact that more agricultural companies who used to throw away by-products left after the slaughter of farm animals and poultry agreed to supply them to fur producers. Many companies, which start to process their own by-products, point out that they would prefer to sell them right after the slaughter. However, the sale of by-products still remains problematic, and for this reason they are processed into the meat-and-bone meal.

Ukraine

In 2007, the volume of import reduced  by 47.73% in kind and 43.41% in terms of money as compared to the 2006 indicators.

In 2007, Ukraine imported two kinds of fodder of animal origin: meat-and-bone meal and fish flour. It should be pointed out that their import into Ukraine is decreasing year in year out. For instance, the import of fish flour went down by 49.43% in kind last year. While in Russia a similar process is taking place against the background of development of its own fish flour production, in Ukraine the fish industry is in a deplorable state.

The import of meat-and-bone meal dropped by 10% in kind.

In 2007, the share of fish flour constituted 73.67% of total imports in kind. The share of meat-and-bone meal was equal to 26.33% in kind.

In 2007, fish flour was imported from Poland (M.A.S. and Anirol companies), Estonia (AS Pomes Feeds) and Latvia (Kalifeks Ltd.). The only supplier of the meat-and-bone meal to Ukraine in 2007 was the Polish company KJM Trade.

Belarus

In 2007, the volume of import of fodder of animal origin into the Republic of Belarus decreased sharply. As compared to 2006, the volume of fodder of animal origin imported into Belarus increased by 14.97% in kind and 5.67% in terms of money.

In 2007, Belarus imported only fish flour. Its volume of import increased by 8.26% in kind and reduced by 4.2% in terms of money. Fish flour is imported into Belarus from Ukraine, Russia and the Baltic states.

Export of fodder of animal origin

Russia

In 2007, Russian enterprises reduced their export of fodder of animal origin.

The total volume of export went down by 62.15% in kind. In terms of money it dropped by 74.61% against the similar 2006 indicator. In 2007, two kinds of fodder of animal origin were exported from Russia: fish flour and meat-and-bone meal.

In 2007, fish flour accounted for 36.93% of the total export of fodder of animal origin in kind. As compared to 2006, the volume of export of these products went down by 80.8% but the exported consignments were very small, so it is too early to make any conclusions. The entire volume of exported fish flour came from Rybtrans Ltd., Nautical Ltd., Koryakryba CJSC and Pollux Ltd. in Kamchatka Province and was exported to China.

The share of meat-and-bone meal constituted 63.07% in kind. The volume of export went down by 11.76%. In 2007, meat-and-bone meal was exported by Sordes Ltd. (Orenburg Province) to Kazakhstan.

In 2007 Russia exported no blood flour.

Ukraine

The export of fodder of animal origin from Ukraine has traditionally been small. In 2007, it increased by 41.53% in kind and by 2.62% in terms of money as compared to 2006.

In 2007, Ukraine exported two kinds of fodder of animal origin: fish flour and meat-and-bone meal.

That year the share of export of fish flour constituted 34.8% in kind and 62.65% in terms of money.

The export of meat-and-bone meal was up by 108.52% in kind and 92.06% in terms of money against 2006. The share of export of meat-and-bone meal constituted 65.2% in kind.

In 2007, 86.88% of the export of meat-and-bone meal went to Armenia, and the remaining 13.12% - to Georgia.

Ukrainian enterprises exported fish flour to Russia (66.7% of total exports) and Belarus (33.33% of total exports).

Consumption of fodder of animal origin

Russia

In 2007, the volume of the Russian market of fodder of animal origin has decreased by 19.84% in kind and 16.3% in terms of money as compared to 2006.

One of the key factors that influenced the volume of the market of fodder of animal origin in 2007 was refusal to import meat-and-bone meal for livestock breeding into the Russian Federation because of apprehensions of penetration and spread of the bovine spongiform encephalopathy from EU countries. Russian enterprises are unable to meet the requirements in this kind of fodder either in amount or quality yet.

In 2007, the share of the import constituted 32.11% of the market volume in kind (against 51.69% in 2006). The share of import in the output was 0.4%.

         As compared to 2006, the volume of the 2007 market of fish flour increased by 10.28% in kind. The share of import in the total market volume constituted 46.08%. The share of export in the output constituted 0.3%.

         In 2007, the volume of the fish flour market reduced by 57% in kind. No meat-and-bone meal was imported. The share of export in the output constituted 0.52%.

         As compared to 2006, the volume of the fish flour market decreased by 96.8% in kind. No blood flour was imported or exported in 2007.

Ukraine

In 2007, the volume of the Ukrainian market of fodder of animal origin decreased by 16.9% in kind and 25.5% in terms of money as compared to 2006 indicators. The share of import in the market volume constituted 26.15%, and the share of export in the output was equal to 19.25% in kind.

The Ukrainian market of fodder of animal origin consisted of the following two main kinds of fodder: fish flour and meat-and-bone meal. The market share of fish flour constituted 46.74% in kind and the market share of the meat-and-bone meal was 53.26%.

Belarus

In 2007, the market volume went down by 19.35% in kind and 18.38% in terms of money as compared to 2006.

Fodder of animal origin was mostly represented in Belarus by the following two kinds: fish flour and meat-and-bone meal.

         The share of fish flour in the market volume was 27% in kind. As compared to 2006, the market volume increased by 10.3% in kind and decreased by 2.335 in term of money. The share of import in the market volume constituted 65.2%. No product was exported.

         The share of meat-and-bone meal in the market of fodder of animal origin constituted 73% in kind. The volume of the market of meat-and-bone meal went down by 26.65% in kind (because no product was imported in 2007). No product was exported either.