Russian meat production threatened by China

Vedomosti: agricultural holdings faced a shortage of animal feed Vedomosti reports this.

Agroholdings Prodo and Cherkizovo complained about the lack of such additives as choline chloride, gluten, threonine and lysine. Rusagro also noted difficulties with additives, but mainly in the Far East. According to a company representative, this will not have a significant impact on the holding's assortment. The manufacturers attributed the shortage of components to delays in supplies from China throughout October, which may be associated with the rolling shutdown of local factories for the sake of a new government policy to reduce carbon dioxide emissions. China is also experiencing an increase in livestock and domestic consumption of supplements, putting previous export volumes at risk.

The head of the National Meat Association, Sergei Yushin, clarified that the deficit of additives may not result in an increase in meat prices, the cost of which depends on many other factors. But their lack can lead to longer fattening of animals, due to which the supply of meat on the Russian market may decrease. Producers' costs will increase, and feed costs already average about 70-75 percent of the cost of pork and poultry.

Cherkizovo notes that the purchase of additives on the Russian market costs twice as much as imports, and the volume of domestic supply is still insufficient. Prodo also complained about the lack of domestically produced lysine. Due to the growth in demand, lysine in Russia has risen in price by 30 percent in nine months – up to 240 rubles per kilogram.

The representative of the Ministry of Agriculture said that the department is aware of the problem of agricultural holdings. The Rosselkhoznadzor clarified that interruptions in supplies from China affect all countries, and cited the example of the United States, where livestock breeders are also concerned about a possible shortage. The department clarified that they are working on expanding imports of feed additives to Russia.

Earlier in November, the Ministry of Agriculture promised to increase support for vegetable and meat producers amid rising prices for these products. The department stressed that such measures are necessary to prevent a shortage of products. The head of the Ministry of Agriculture Dmitry Patrushev noted that against the backdrop of the global crisis, it is important to make prices for products in the domestic market less dependent on the conjuncture of world markets.