Analysts expect a limited increase in feed demand in Russia

The USDA FAS forecasts a small recovery in feed demand in Russia as the livestock husbandry sector recovers from dampened demand during the COVID-19 pandemic. To address sharply increased domestic prices, in December 2020, the Russian government introduced an export quota of 17.5m tons of grain for the period February 15 to June 30, 2021, which excludes supplies to the Eurasian Economic Union (EAEU) countries, including Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Those measures were also supplemented by export duties; such levies were expected to benefit livestock producers as it was believed the move would ensure ample feed availabilities in the domestic market. “However, weaker demand exemplified by reported decreases in poultry inventories and slowing of the growth rate of pig production suggests ample supplies alone may not drive higher consumption,”​ said the USDA FAS. According to Russian analysts, domestic grain consumption is not growing and the likelihood of its ...