World Grain - April 2018 - 6

FROM THE EDITOR

Russia's agricultural
renaissance also includes feed
EDITORIAL STAFF

n recent months, much attention has
been focused on Russia's ascension to
No. 1 among the world's wheat exporters, supplanting the United States, which
had been the leader in this category for
many years.
Since 2005-06, Russia, which was a net
wheat importer at the turn of this century,
has nearly doubled its wheat production
from 44.5 million tonnes to the forecast 85
million in 2017-18 and more than tripled its
exports from 10.6 million to 36 million during that time. Its export share has jumped
from 1% in 2000 to 18% in 2016-17.
This hasn't occurred by accident. With its
biggest industry - oil - in steady decline,
WKH5XVVLDQJRYHUQPHQWKDVPDGHVHOIVXI¿ciency in agriculture a high priority in recent
years. A weaker ruble has led to more expensive imports and cheaper exports, making a
boost in agricultural production and exports
a winning strategy for a country that comprises 11% of the world's land mass and has
great potential for agricultural expansion.
But the Russian renaissance in agriculture isn't just limited to wheat, as this
year's Alltech Global Feed Survey, released in late January, revealed.
While the report's headline was that
global feed production topped 1 billion
tonnes for the second straight year at a
record 1.07 billion tonnes, closer inspection shows the most eye-opening development was Russia's one-year leap from the
world's No. 7 feed producer to No. 4.
"Russia has been the story for us this
year," noted Alltech's Aiden Connolly.
"There is a desire clearly from President
3XWLQ WR IRFXV LQFUHDVLQJO\ RQ VHOIVXI¿ciency and he wants to see that in broilers,
eggs, milk and pork to replace imports with
local production."
According to Alltech, Russia increased
its feed production by 19% from 2016 to
2017, churning out 37.6 million tonnes.
The beginning of this growth spurt in feed
goes back a decade. According to a 2017
Global Agricultural Information Network
report from the U.S. Department of Agriculture, the Russian feed sector has expe-

rienced an annual growth of between 7%
to 10% since 2008. This growth has been
supported by greater production in the livestock and poultry sectors, the introduction
of new technologies and improvements in
feed quality.
Not coincidental with this growth was
the launch of the National Agricultural
Development Program 2008-2012 and the
follow-up State Program on Agricultural
Development that runs through 2020, both
of which have been credited with spurring
major expansion in Russia's poultry and
pork output.
Boding well for future feed production
was a report from the Livestock and Breeding Department of the Russia Ministry of
Agriculture forecasting 1-million-tonneper-year growth for the meat and poultry
sectors through 2020. And projecting out
even further, the Russian Feed Union forecasts that by 2025 feed for poultry will
grow by 29%, feed for pork will increase
by a whopping 61% and feed for livestock
is expected to jump by 50%.
The government will continue to have
a stake in this growth as it is currently co¿QDQFLQJIHHGSURGXFWLRQSURMHFWVZLWK
a contribution of 5 billion rubles ($85 million) of the total cost of 22.3 billion rubles
($376 million).
5XVVLD¶V URDG WR VHOIVXI¿FLHQF\ LQ DJULculture as well as being a global leader in
agricultural exports isn't without its potential bumps and detours. The country's aging
infrastructure, particularly when it comes to
agricultural transportation, is years behind
many of its competitors,
and a strengthening of
the ruble or some other
economic shift could also
slow the country's ability
to export.
But as things stand today, it's hard to imagine
Russia not continuing to strengthen its position in the global grain and feed sectors.
Arvin Donley
Editor

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