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Import of GM soy and soybean meal calls into question the investment projects on processing of oil in Russia
"We think it (the decision) was not clear to participants in the feed market. If you follow the logic that these volumes of soybeans and soybean meal needed to meet the needs of breeders, it can be easier: either to restrict exports or to adjust export increase export duties" - this position was voiced in an interview with "Cupid" TV Executive Director NKS Sergey Mikhnyuk.
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In late may, the RNC requested that the government of the Russian Federation with a request to explain in more detail who and what may take in the framework of the decision, and the expected course of action of the importer (a copy of the request have SoyaNews). The Union received information that the request is forwarded to the Ministry of agriculture of Russia and Rosselkhoznadzor. In NKS we hope that a written explanation will give a clear picture how participants in the feed market and potential importers to make decisions about the appropriateness of discussing the importation of products.
 
According to Sergei Manuka, NKS stands for healthy market competition, but vulnerable in this situation can result in the processors of soybeans and soebody. Some invest large sums in infrastructure, including the development of raw material zone, and carry long-term financial liabilities and risks, others motivate prevailing in previous periods, the pricing environment for grown soybeans. If it is not understanding of the strategic prospects for development, they can move on to growing other crops. "If it is imported ready soybean meal, it is possible to price adjustment proposals, which will be welcomed by livestock producers and poultry farmers," - said the head of the trade Union, adding that the power processors of domestic raw materials will be underutilized.
 
In the NKS assume that the judgment may be prolonged and further that will entail additional risks for investment projects. "This raises into question not only the current activities of the existing processors of soybeans, but also those investment projects, which are currently laid as in the Central Chernozem region and in the far East", - said Sergey Mikhnyuk.
 
In addition to these risks, in NKS fear that has emerged in the past months serious practice of subsidizing agribusiness sector in Argentina and Brazil can be an unpleasant surprise for the existing importers of soy raw materials.
 
The same position is held in the fat-and-oil Union of Russia: there is considered a cancellation for the supply of soybean meal illogical step, which will undoubtedly lead to negative consequences for domestic processors. "Our position is that you want to exclude from the decision of the government on cancellation of registration of soybean meal," said Executive Director of industry Association Mikhail Maltsev "the Agroinvestor", adding that otherwise the winner will be only economy of South American countries, and Russia's economy will lose.
 
2 Jun fat-and-oil Union has appealed to the Chairman of the Federation Council Committee on agrarian and food policy and environmental management Alexey Mayorov with a request to exclude soybean meal from the list of products not subject to state registration. "To prevent negative consequences for the industry, I urge you, dear Alexey Petrovich, to apply to the government of the Russian Federation on amendments to resolution of the government of the Russian Federation of 16 April 2020 No. 520 in terms of exclusion of soybean meal from the list of products not subject to state registration", - is spoken in the letter signed by Michael Maltsev (a copy is in SoyaNews).
 
"Mitigation monitoring and clearance of imported soybean meal, in addition to the loss of control over origin and quality, in our opinion, will lead to irreparable consequences for the oil industry to freeze already implemented or rejection of new investment projects aimed at processing of raw materials, and, as a consequence, the loss of export potential of the industry and the country as a whole" - also follows from the treatment.
 
A day later, the Federation Council held a meeting on the theme "Improvement of state regulation of Russian market of soybean meal and products containing soybean meal", which was held by Alexey Mayorov.
 
"This issue is important for the development of agricultural production, in particular for the production of fodder, because the share of feed cost in livestock and poultry is about 70 percent, and soybean meal is a significant proportion - said the Senator. - We need to understand what is the current situation on the Russian market of soybean meal and products containing soybean meal, especially feed, what are the prospects, problems and ways of their solution. We proceed from the necessity of priority development of domestic soybean production and its processing".
 
Alexei Mayorov said that the Russian President instructed the government to prepare proposals on rendering of measures of state support to enterprises engaged in processing of sunflower and soybean meal, such as for agricultural producers. "Unfortunately, despite the active development of areas of soybean production, the Russian farmers can't meet the current demand," — said the MP.
 
The Senator drew attention to the growth of the production of soybean meal in Russia in recent years, but is required to prepare proposals for the consolidation of this positive trend and its further development. "There are areas where you can improve the work efficiency. So currently not fully utilized capacity of oil extraction plants for processing soybeans. There are expert estimates that for a number of reasons has reduced the competitiveness of Russian soybean processing in comparison with other countries".


Translated by service "Yandex.Translation"
Источники: Зерно Он-Лайн
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