In 2023, Russian investors rolled out plans to implement over 60 projects in the feed industry with a total worth of 387 billion roubles (approximately $4 billion), Feedlot, a Moscow-based think-tank estimated. This figure is believed to be well above the average for the last few years.
"Against all odds, investments keep coming in agriculture in difficult times," Lyubov Savkina, general director of Feedlot, commented.
Donbiotech’s expansion was the largest project rolled out last year, Savkina indicated. In 2023, Roschem, a new owner of the Donbiotech plant in the Russian south, said it intended to invest 85 billion roubles (approximately $900 million) to launch the production of tryptophan, valine and threonine by 2028. By 2025, the company intends to kick off the production of lysine chloride and lysine tryptophane, among other things, Savkina reported.
Other significant projects are also underway in the Russian south, including the production of feed ingredients via fermentation. In the Kaliningrad region, Sodruzhestvo is planning to construct a plant for soybean processing. This plant will produce a variety of feed products, contributing to the industry's diversification and growth.
Over the past five years, Russian feed production has made significant strides, surging by 43% to reach 42.2 million tonnes in 2023, as calculated by Savkina.
Savinka estimated that during this period, domestic lysine production soared by 152%, and now local manufacturers meet roughly half of the domestic demand which estimated at 200,000 tonnes/year.
In 2023, however, Russian lysine production declined owing to a problem at the Belgorod-based Premix Plant # 1, not far from the Ukrainian border. Production at the facility was disrupted following a cross-border shelling. According to Savinka, the company eventually managed to restore production.
Russia manufactures feed-grade lysine and methionine but is still heavily dependent on imports of other feed additives, Savkina added. In total, Russian feed additive imports stood at $340 million last year, Savkina calculated, adding that this figure was lower than expected due to a drop in vitamin A and D prices on the global market.