15 февраля 2011

`Аnimаl Fееd 2011: еvеnt rероrt`

At present there is a tendency of growing interest of the Russian chemical community to agribusiness We can see, that producers of fertilizers are actively cooperating with agricultural enterprises, and some of them even has its own experimental farms and link their own prospects for increasing domestic demand. Meanwhile, a compound feed and a premixes industry (which is also uses the progress of chemical industry) stayed in the shadow of the industrialists` attention for a long time. Creon has decided to rectify that omission, and held January, 31, at the Hotel Baltschug Kempinski the first International conference "Animal Feed 2011".

Andrew Slavutin, CEO Coordination and Analytical Center for Agro-Industrial Complex, described this market fair enough: compound feed production is similar to jewelry production, because it requires to arrange carefully all the ingredients to achieve the result. Errors in the production not only threaten agricultural animals and the business of producers, but also for everyone, the health of end users of agricultural products. Russian pig and poultry breeding had been actively developed over the past 10 years, because it operated the same way as the industrial enterprises, so, investment in this highly profitable business pay off quickly enough. As a result, imported pork and poultry meat were pushed to its marginal segment ("Bush legs" and so on) though not disappeared entirely from the Russian market. Meanwhile, the positions of Russian meat producers are getting worse now, because of the production costs. It this case, their competitiveness is getting down. As a fact, a key role in forming of the costs play compound feeds.

Last year Russia had produced about 16 million tons of compound feed on specialized facilities, and also from 5 to 10 million were produced by farmers. According to that - the growth rate is slowing, and the demand is stabilizing. In Soviet times production reached 40 million tons, but production of meat products was about the same, because of more rational compound feed use and increasing conversion "feed-meat" almost doubled. Industry positions became worse due to summer heat of last year: a price for seeds has been doubled (up to $ 250 per ton of feed wheat) However, despite the fall in seed production to 60 million tons (in 2009 97 million tons was raised), seed balance in Russia still remained in surplus, so far as production deficit was covered with reserves decreasing. The growing of seed production even higher average annual level (86 million tons) is expecting in 2011 (in case of weather anomalies absence). At the same time, an alternative distribution channel of seed is export, and this leads to the green feed popularity. The head of analytical agency "ProZerno Vladimir Petrichenko told the audience about the state of the seed market and the prices on feed wheat.
It`s necessary for independent suppliers of compound feeds to develop new products and technologies to enter into effective competition. Promising enzymes Natuzim which promotes better assimilation of nutrients in animal feed were mentioned in presentation of Natalia Panova who is the representative of "Kollektsia Vkusov". Alexander Blanutsa, who is the manager of Chempack, presented report about modern methods of compound feeds logistic with automatization of many processes. Using such methods contributes (promotes) depreciation of storage and shipment of compound feeds to customers and reduce outlay.

The saturation of the domestic market of compound feeds puts on the agenda not only the question of costs, outlays but the quality issues, environmental and health safety of these products. The problem of regulation of the compound feeds production and sale (distribution) is still in an unfinished state and deal mainly with veterinary standards and supervised by Russian Veterinary Service. Domestic requirements for the content of pesticides and heavy metals are more stringent than even in the EU but in practice not effective enough.
Due to the fact that major part of compound feeds is produced not by specialized company and the heavy metals and pesticides accumulate not in the meat but in the internal organs of farming animals the State control attention to the market is not sufficient. However, companies-suppliers of laboratory equipment sustain acceptance of new national standards and implementation actively. The serious problem of domestic compound feeds industry is that no one except them needs those standarts. This question raised by Elena Besedina who is the Director of the Department of Technical Regulation of the Russian Grain Union.
Connection between the grain business and compound feeds industry was the subject on the presentation of Mikhail Ovcharenko, the President of the National Agrochemical Union. In his opinion the main problems of compound feeds quality caused by two factors: the wrong dosage of synthetic components in the turnout of ones and specificity of plant material.

Incorrect dosage leads to increase of microelements dangerous concentrations particularly heavy metals. Specifics of the same plant material is determined by weak soil application fertilizer without nitrogen. The decrease in grain content of phosphorus and potassium leads to increased incidence of farm animals, and the decrease of the content in the grain of calcium and its replacing by silicon hinders nutrient absorption and reduces the efficiency of feed utilization. The producers of compound, many of whom works on terms of processing feeds have little interest in changing the situation. Mr. Ovcharenko see a way out in integration of the grain and compound feed business in the same companies. The chemical industry can offer many decisions to suppliers and see the great potential for development in that.

We expect to see representatives of the chemical community to new Creon conferences devoted to the agrochemical topics.

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