Russia's oilseed processing capacity may grow by 4 mln to 6 mln tonnes in next 3 years - expert

MOSCOW. June 10 (Interfax) - Russia's oilseed processing capacity could increase by 4 million to 6 million tonnes within the next three years, Institute for Agricultural Market Studies General Director Dmitry Rylko said.

"Russia continues implementing oilseed processing projects. We anticipate additional capacity growth of 4-6 million tonnes within a three-year perspective. Loading these new capacities will require expanding oilseed cultivation areas by 1.3-2.5 million hectares beyond the record 2025 planting," Rylko said at a poultry farming seminar organized by the Russian-Dutch joint stock company De Heus (Vladimir region).

The institute estimates that Russia's oilseed processing capacity will reach around 35 million tonnes of raw materials annually in 2025.

Farmers' strong interest in oilseeds and increased production of meal (an oilseed processing byproduct) will favorably impact feed availability for poultry and livestock, Rylko said. In particular, growing supplies of soybean, sunflower and rapeseed meal will help stabilize price volatility for grain-based feeds. However, grain feed pricing increasingly depends on export channels and interregional logistics, especially considering transportation gaps between European Russia and Siberia, he said.

Industry estimates show feed accounts for up to 70% of poultry production costs.

Rylko forecasts that Russia's planted area under oilseeds may set a new record exceeding 20 million hectares in the 2025-2026 agricultural year, with the harvest reaching 31-32 million tonnes. "Next season we anticipate record soybean, rapeseed and sunflower plantings, with the total area under oilseeds potentially surpassing 20 million hectares. Given current planting forecasts and absent severe weather issues, the total harvest could grow to 31.3-32.3 million tonnes," he said.

A year earlier, oilseed plantings covered 18.9 million ha, with the Agriculture Ministry reporting the harvest at 30 million tonnes.

Producers are reorienting towards sunflower, rapeseed and legumes to maintain business profitability, Rylko said. Simultaneously, farmers are reducing wheat (Russia's most common grain) and rye (previously in high demand) cultivation areas.

De Heus ranks among Russia's leading producers of premium premixes, prestarters and compound feed for livestock and poultry. Its premix production capacity reaches 120,000 tonnes annually, with 60,000 tonnes for prestarters. The company partners with around 300 Russian businesses, exporting up to 15% of products to Belarus, Uzbekistan, Kazakhstan, Tajikistan, Mongolia, Kyrgyzstan, Armenia and Georgia.