Market Trends of Russia Compound Feed Industry
This section covers the major market trends shaping the Russia Compound Feed Market according to our research experts:
Industrialization Of The Livestock Sector
The Russian compound feed market is driven by factors such as increasing meat consumption across the globe and growth in the processed meat industry. Other factors responsible for growth in the market are population growth and an increase in the income of the middle-class population in developing countries. The flexibility to choose from numerous raw materials is also triggering the growth of the industry. The United Nations Food and Agriculture Organization (FAO) estimates that the demand for food will grow by 60% between 2010 and 2050. Furthermore, it also estimated that the production of animal proteins is expected to grow by around 1.7% per year, with meat production projected to rise by nearly 70%, aquaculture by 90%, and dairy by 55%. The shift towards meat production industrialization requires a better regulatory framework to protect public health, and high feed additive inputs in animal feed to enhance the efficiency of meat production.
Increased Compound Feed Production
According to the Russian Federal State Statistics Service (ROSSTAT), the total production of compound feed has been increasing significantly, reaching 27.6 million metric tons in 2018 from 24.8 million metric tons in 2016. The poultry segment accounted for the highest share, 54.6%, in the total production of compound feed during the year 2018. The average per capita consumption of meat in the country reached the highest mark in the last 25 years at 75.4 kilograms in 2018 from 72.7 kilograms in 2016. The government of Russia has also prioritized the feed industry, by extending direct and indirect subsidies to the producers. Several feed companies are reviving the previously discontinued investment projects on feed. In 2019, the All-Russian Research Institute of Feed undertook a project to increase both the volume and quality of feed, by expanding feed production to the vast territory of Russia.
