The market for compound feed in Russia is projected to register at a CAGR of 4.2% during the forecast period. 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. The rising trend of meat consumption is further expected to continue, due to a systemic decrease in the wholesale and retail prices of pork and poultry supported by expanding domestic production. Moreover, 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.

Key Market Trends

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.

Competitive Landscape

The Russian compound feed market is consolidated with the major players holding a huge share in the region. Leading companies focused on acquiring feed mills and small manufacturing for expansion of the business in local as well as foreign markets. Some of the players have been expanding their geographical presence by acquiring or merging with the manufacturers in the foreign market. The leading companies focused on the expansion of the business across regions and setting up a new plant for increasing production capacity as well as a product line. The companies are also increasing production capacities of their existing plants.

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