The crisis in Russia and Ukraine may lead to an increase in the price of some feed raw materials. For more information on export to China, please call SINOLOBEN, service Email: email@example.com.
Steve Hart, vice president of the Global Fisheries Alliance, said in an interview with UCN: "the situation in Russia and Ukraine has led to a rise in wheat prices."
Ukraine accounts for 12% of global wheat exports and 16% of global corn exports, according to the U.S. Department of Agriculture. Us wheat prices have risen 6 per cent since the war broke out because Ukrainian ports have been closed, Hart said.
Wheat and corn are raw materials for aquatic feed, although they are less important than fish meal and fish oil, but if they are high-end mass-produced aquatic feed, they account for about 5-10% of the feed composition.
Even before the war between Russia and Ukraine, feed producers had raised prices several times to cope with rising costs, such as corn gluten prices rising by more than $850a tonne from $600a tonne, Hart said. The crisis in Ukraine could also have a knock-on effect, which in turn affects the price of other raw materials, such as animal by-products and soybeans.
"if feed mills use protein powder supported by many by-products, and manufacturers see feed prices rise, they will eventually have to adjust the price of animal protein." Hart said.
Fluctuations in the feed raw material market may accelerate the commercialization of some new component substitutes such as algae, which no longer seems so novel due to the rapid development of substitute protein research technology.
"some well-known feed companies, such as BioMar and Skrettings, will do research in the field of alternative proteins ahead of time and adjust their formulations to introduce new costs to help alleviate the problem of price volatility." Despite the rise in feed prices, Hart believes that aquaculture producers still have ample profit margins, mainly because of the current high global demand for aquatic products.
Consulting service for China's imports & exports, please contact us.
Ms. Linda Li
0086（0）21 3538 3306
As food importer & food distributor based in Frankfurt and Shanghai, Sinoloben Europa Trading GmbH helps client export to China and bring your food products to International Expo, e.g. China International Import Expo (CIIE), the world's largest import-themed expo.
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