Bloomberg News

Russian Soybean Meal Demand Seen Rising on Poultry Growth

January 15, 2013

Government programs in Russia aimed at boosting poultry and livestock production are spurring increased demand for soybean meal used in feed, Oil World said.

Russia’s soybean meal use may rise by 4.5 percent in the 2012-13 season to a record 2.35 million metric tons, the Hamburg-based researcher said today in an e-mailed report. Total usage of oilseed meals may increase by 2.9 percent to 5 million tons. Poultry output has more than tripled since the 2002-03 season as state programs stipulate at least 45 percent of the meat sold in Russia must be domestically produced 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,” Oil World said. “In particular, the rapid expansion of poultry production has favored 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 tons in the 2012-13 season, Oil World said. Soybean meal output was pegged at 1.84 million tons in the year that began Oct. 1, up 5.3 percent from a year earlier, while soybean meal imports are expected to decline 4.8 percent to 500,000 tons.

“Despite the bigger soybean crop, Russia will remain a large 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,” Oil World said. “Imports of soya meal are forecast to stay high also this season,” because the country eliminated a 5 percent import tax when it joined the World Trade Organization in 2012.

Poultry meat production may rise to 3.7 million tons in the 2012-13 season that began Oct. 1, 5.7 percent more than a year earlier, Oil World said.

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

To contact the reporter on this story: Whitney McFerron in London at wmcferron1@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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