With increasing feed costs the ‘Agro-holdings’ who produce the lions share of meat for the affluent residents of St Petersburg and Moscow have been struggling to maintain profit and production growth has been hindered. Despite Russia’s abundant production of grain and oilseed, these raw materials have been destined for the lucrative export market rather than meeting domestic feed requirements. Subsequently Agro-Holdings have actively encouraged the State’s seizure of the grain and oilseed exports as this will ensure a supply of affordable feed ingredients.
The Agro-holdings are therefore satisfied with the States increasing nationalisation of grain exports. However we will see a retraction of foreign investment into Russia’s black soils and an increasing strained relationship with Russia.