The decline in oilseed prices observed in Russia for the second consecutive season is the reason for the growing competition for the markets for these products. This was stated by the director for the procurement of raw materials of the Yug Sibiri Agricultural Holding Roman Semenenko, the press service of the company reported on December 25.
"At present, Yug Sibiri is working with maximum productivity, so we need to implement a large number of meals on a timely basis. We have a good coverage of the Siberian market. Ural's poultry farms are our next promising direction. But we must take into account that the logistics costs at current prices for sunflower meal are up to 20-25% of the cost of the goods. In the current situation, when the transportation of oilseed products, in particular, meals, is not subsidized in any way, a long transport leverage inevitably leads to a drop in the price of finished products, and as a result, the purchase prices for raw materials are reduced," the expert explained.
Also, according to Roman Semenenko, the drop in prices for meals is due to record wheat harvests. "The cost of feed grain at certain periods in certain regions of Russia did not exceed 4 thousand rubles ($ 68.73) per ton, which encourages feed consumers to revise the feed ration," he explained.
Source: apk-inform.com.
