Rapid growth in Russia creates DDGS demand
Russia is the biggest country in the world and has the
eighth largest population with approximately 141 million people. According to
Alex Kholopov, US Grains Council consultant in Russia, the livestock and poultry
industries in his native country are growing “very rapidly.”
The substantial growth is due in large part to the government's decision to
make agriculture a national priority. Specifically, Kholopov said prior to the
government's focus on agriculture, it was nearly impossible for livestock and
poultry operators to borrow money for longer than a year. Today, the Russian
government has afforded the industries with loans for up to eight years with
zero percent interest.
“Russia's swine industry is in a transformational
phase. This industry was previously very small with operators only feeding a few
hogs at a time. We are seeing that trend shift to a more modernised industry
similar to the United States,” Kholopov said.
The swine industry has
doubled in two years and will likely continue to grow at this pace, increasing
the likelihood of the industry to consume nearly all domestically produced corn.
As a result, leaders in Russia's poultry industry are looking to US distiller's
dried grains with solubles, a co-product of US ethanol. Dmitry Lvovich,
assistant to the general director of OGO Group, one of the top three companies
in Russia in terms of elevator capacity, livestock feed output and poultry
production, is attending the Council's International Distillers Grains
Conference (IDGC) in Indianapolis, Indiana this week.
“I am here (IDGC)
looking for the right supplier of US DDGS to establish a long term
relationship,” said Lvovich. “I am convinced of the value of DDGS as a feed
ingredient due to the US Grains Council providing educational seminars in
Lvovich said when a reliable supplier is identified OGO will
work vigorously to get the US company registered to export DDGS to Russia. He
said the biotechnology registration process typically takes one year, but he is
hopeful the process will only take a few months. When the registration is
complete, Lvovich said OGO will be turning to the Council for technical
Efficient & effective
“We will need to know how to efficiently and effectively feed
the product,” he said. “We are particularly interested in the nutritional
components of distiller's grains. We foresee other companies following our lead
and incorporating DDGS into poultry rations in the near future. Much promotional
efforts are needed right now.”
Currently in Russia, the livestock and
poultry industries utilise 18 million metric tons of feed ingredients with 60 to
70 percent going into poultry rations.
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