World meat industry news

Compound feed - the main feed for industrial animal husbandry - is a crumbly mixture of grain and vitamin supplements. For horned and feathered, its composition differs only in the balance of components, which, in addition to wheat, may include corn, barley, millet, oats, bran, peas, oilcake, salt. Chickens are also mixed with a crushed shell, for the strength of the egg shell. The price of meat, milk and eggs directly depends on the price of compound feed. And the price of compound feed, of course, depends on the price of raw materials - that is, feed grain.

Demand creates demand

The fodder base is expanding not only at the expense of grain, but also thanks to oilseeds, for which this year 250,000 hectares have been given more than before. According to forecasts, they will be able to harvest almost 27 million tons of rapeseed, sunflower and flax, which means that the “bread” of the animals will be with oil, that is, with cake and meal.

If in 2021 32 million tons of compound feed were produced, which is 3.6% more than in 2020, then in the first six months of 2022, an increase of 5.8% has already been recorded compared to the same period a year earlier. This is not due to a rich harvest as such, but to the passion of Russians for meat dishes.

"In the first half of the year, 5.7% more pork and 6.9% more poultry were produced, if we count in slaughter weight," explains Aleksey Plugov, General Director of the AB-Center Expert and Analytical Center for Agribusiness. "Demand for meat is growing, "Consequently, the demand for mixed fodder is also increasing. If grain is at least three kopecks, no one will produce feed at a loss if there is no buyer. And there is one. In addition, we are increasing meat exports abroad and reducing imports."

According to Plugov, due to the high supply, the price of feed this year will be moderate. In September-October, it can find a pleasant price tag and meat in retail chains. “There is a seasonal food deflation, before that prices were rising, so there should be a price rollback in any case,” the expert concludes.