The recently passed legislation making Russian feed additive manufacturers eligible for broad state aid measures should help the industry overcome its dependence on imports, according to local sources. It will pave the way for Russian agriculture towards technological independence and bolster Russia's food security, the press office of VIK group of companies, a leading player in the Russian feed industry, also commented.
The legislation, scheduled to come into force on 1 September 2024, will open access for feed additive manufacturers to state aid in various forms, most importantly soft loans with a subsidized interest rate.
Prior to the passing of the new legislation, agricultural manufacturers and processors were allocated Rub 558 billion ($9 billion) of state aid from the national budget. However, feed additive products did not qualify since their operations do not always require the use of agricultural raw materials.
VIK representatives are optimistic about the potential of the legislation to be a game-changer for Russian feed additive manufacturers. They believe that this law will open doors for new and modernized production capacities, both in the short and medium term.
The legislation is the fruit of the strenuous work of the Russian feed industry, said Sergey Mikhnyuk, executive director of the Russian National Feed Union (NFU). Mikhnyuk added that the NFU repeatedly raised the issue of Russia's dependence on imports of feed additives with the Russian Agricultural Ministry.
These efforts eventually paid off, as at the end of 2023, the Russian Agricultural Ministry was tasked with adjusting the existing regulations to enable feed additive manufacturers to benefit from the state aid as well, Mikhnyuk said.
