W2 Oats Update: Russian Oat Yield Drops 27% YoY in 2023; Kyrgyzstan Extends Zero VAT on Oats to Address 30% Feed Shortage

Russia's Oat Harvest Declined 27% YoY in 2023

In Russia, the grain yield for 2023 was 3.08 metric tons (mt) per hectare (ha), marking an 8.4% year-on-year (YoY) decrease compared to 3.36 mt/ha in 2022. The harvested quantities include 3.3 million metric tons (mmt) of oats, down 27% YoY from 4.5 mmt in 2022.

Tyumen Region, Russia, Inspected Over 4,000 Batches of Grain Products Exported in 2023

In 2023, the Rosselkhoznadzor Office for the Tyumen Region, Yamalo-Nenets, and Khanty-Mansiysk Autonomous Okrugs in Russia conducted inspections on over 4 thousand batches of grain and grain processing products. Following these inspections, more than 4,800 phytosanitary certificates were issued for various product exports, totaling over 170 thousand mt. The exported products included food oats at almost 6 thousand mt and oat flakes at 329 mt.

UK Forecasts Higher Oats Utilization in Animal Feed in 2024

Animal feed serves as a significant demand driver for United Kingdom (UK) cereals, with the Agriculture and Horticulture Development Board (AHDB) projecting the use of 12.4 mmt of oats, wheat, barley, and maize for this purpose in the 2023/24 season. This represents a slight increase of 6 thousand mt from the previous season but remains notably below the five-year average of 13 mmt.

Kyrgyzstan Extends Zero VAT on Oats and Animal Feed

The government of Kyrgyzstan has prolonged the zero value-added tax (VAT) rate on specific fodder crops and feed for farm animals until the end of 2024, as per a Cabinet of Ministers Resolution. This extension includes items like barley, oats, bran, and oilseed cake. The move aims to tackle a 30% feed shortage caused by drought, imposing restrictions on feed exports and granting imported feed exemption from taxes and duties.