In 2023, China further increased its dominance of the Russian feed vitamins market, accounting for 83% of the total supply, while the share of European companies shrank to 14%, Feedlot, a Moscow-based consultancy, estimated.
Over the past two years, Chinese companies have been steadily overtaking European suppliers in the Russian feed vitamins market. In 2022, China supplied 79% of feed vitamins to Russia, while the EU's share was 17%. A year earlier, China held a 75% stake of the market, and the EU 21%.
In 2023, Russia imported 30,600 tonnes of feed vitamins, a 19% decrease compared to the previous year, Feedlot estimated. This downward trend can be primarily attributed to the large stocks Russian firms accumulated during 2022 when market players braced for possible supply disruptions.
In monetary terms, Russian feed vitamin imports amounted to $180 million in 2023, which was 36% less than in 2022 and 8% less than in 2021, Feedlot said.
More than half of the Russian feed vitamin imports were choline chloride – vitamin B4, accounting for 60% of all deliveries. Around 20% of all deliveries were vitamin E 50%, and 12% were choline chloride vitamin B4 70%, as calculated by Feedlot.
Feedlot expressed doubts over import-replacement prospects on the Russian feed vitamins market, though some Russian players have recently revealed plans to invest in production of vitamins B4 and B2.
"The production of vitamins is high-tech and expensive; it is difficult to find investments in the required volume, as well as to compete with recognized industry leaders, so in the near future it is unlikely [Russia] will be able to overcome dependence on imports," Feedlot stated.
Growing reliance on Chinese feed additive imports bears certain risks for the Russian feed industry, commented Sergey Mikhnyuk, executive director of the Russian National Feed Union.
Mikhnyuk voiced concerns that the potential risk of delays in transaction times for deals concluded under prepayment terms may delay the delivery of goods. He added that the increased load on logistics channels spanning Russia and China affects the delivery time.
"Against the backdrop of the increasing cost of producing a number of feed additives in the EU, Chinese colleagues may begin to pull up their prices to the current European level, taking advantage of the emerging global price environment," Mikhnyuk noted.
Mikhnyuk argued that the import replacement of feed additives is possible, though concrete prospects so far are seen for choline chloride and only a couple of other items.
