The Russian government is looking into the idea of granting feed production in eastern Russia the status of “independent industry”, potentially paving the way to new state aid programmes. One of the rationales behind the move is to give businesses an impetus for development in the poorly populated eastern parts of the country.
"We should have market players who deal exclusively with feed, including using the potential of the territories that today are seen as less attractive for classical crop production," explained Andrey Razin, deputy Agricultural Minister, outlined during an industry conference in March 2024.
Feed production in Russia is concentrated in the western part of the country and is in the hands of the big vertically integrated agricultural holdings. The top 25 Russian meat companies account for roughly 80% of Russian feed production.
The status of independent industry in Russia usually means more attention from the federal authorities, as well as more diverse and ample state support measures.
Establishing feed production as an independent industry can give a second breath to the sector of independent feed mills, which sagged in the past few decades as large holdings changed the balance of force on the market, commented Sergey Mikhnyuk, executive director of the Russian National Meat Union.
Mikhnyuk emphasized that "any rise in attention from the state to a particular industry provides a positive development stimulus."
According to Mikhnyuk, as an independent industry, feed production is likely to become eligible for various favourable development programmes from government agencies and banks.
Vladimir Soloshenko, head of the scientific direction of the Siberian Institute of Agricultural Technologies, also stressed that the new programmes could help the industry develop poorly populated Siberia and the Far East, which jointly account for 66% of the Russian territory.
Soloshenko explained: "The geopolitical situation around Russia requires the accelerated development of [eastern] territories to increase the production of livestock products and populate empty lands".
The state development programmes should help farmers compensate for harsh environmental conditions and bolster business profitability, he added.
There is no information, however, on when the Russian government will grant the new status.