Russia’s animal feed market was valued at US$17.970 billion in 2019 and is projected to expand at a CAGR of 5.02% over the forecast period to reach US$24.110 billion by 2025.
Growing consumption of meat and other end products such as milk, eggs across the country due to increasing disposable income is considered as one of the prime factors driving the growth of the market during the forecast period. Russia holds a significant share in global animal feed production and increasing consumption of meat in the country drives the market for poultry feed in the coming years.
In addition, animal feed market for swine is expected to be the fastest-growing segment on account of the increasing swine population in the country. For instance, according to FAO pigs production in Russia has increased from 4,307.703 thousand in 2010 to 5,506.924 thousand in 2017. However, feed mills in the country have failed to control the dependence of import on various feed components such as microbiological additives, high protein products among others,
Growing preference towards animal based products and increasing awareness about animal health to ensure quality is driving the market.
The demand for feed has been rising because of the increasing number of facilities for meat and other production and to ensure the quality of the animal products breeders use feeds to meet the dietary requirements of the livestock. In addition, increasing dairy milk consumption would also provide high market growth opportunities which will further attract numerous market players to invest in the market.
For instance, according to the government of Russia, in 2018, milk production in the country has increased by nearly 1.5 % in 2018 reaching 30.6 million tons and ministry further forecasts that it will increase by more than 2.8 % reaching 31.1 million tons in 2019. Furthermore, live stocks in the country are highly dependent on grazing ground for feed and with increasing industrialization and rapid urbanization the size of agriculture landholding is also decreasing which somehow decreases the prospects of grazing ground.
The decline in grazing ground fuel the demand for animal feed as feed works as the substitute for the feed from the grounds. Also, Russian meat producers have been effectively protected from import competition by high-tariff barriers and in recent years there is an improvement in meat production efficiency thanks to an increase in competition among domestic players.
Source: ResearchAndMarkets.com
