Russian market of Vitamin E in the first half of 2020

According to FEEDLOT.RU (Russian feed additives analytic agency), over 2500 tons of Vitamin E 50% were imported to Russia in 6 months this year. BASF company has become a leader supplier of this vitamin to Russia, accounting for more than 35% of imports. 364 tons of vitamin E50% were supplied in dry form and 300 tons in oil form (94%) by this chemical giant.
ZMC company (ZHEJIANG MEDECINE COMPANY) has become the second largest producer in terms of supply. It accounted for 25 % or 660 tons of vitamin E50% as powder.
DCM company accounted for over 13 % of vitamin E50% or 342 tons by volume.
By a wide margin, the leading players are followed by other companies (Diagram 1), which are either applicants or semiproducers.

Since the beginning of the situation with COVID-19 in March 2020, countries with the largest production volumes (including China) started to introduce quarantine measures and the price of vitamin E rose sharply. Thus, by the beginning of May, the price reached a new maximum and exceeded the mark of 10,5 euro/kg in Russia. Since June 2020, the price of Vitamin E50% has started to gradually decline. At the moment, the price for this product is fluctuating around 8,5-9 euro for 1 kg on the Russian market (Feedlot: price incl. VAT 20%), while the price of vitamin E50% in Europe is about 6,5 – 7 EURO/kg.

«Excluding VAT 20%, there is such a big difference in the price for vitamin E for European and Russian buyers due to the presence of mandatory customs payments and transport expenses» - explains Petr Kanardov from PROTOFEED company. «Imported feed additives will always be more expensive for Russian producers of pork, poultry and premixes. Unfortunately, most of such products (including vitamins) are not produced in Russia. So, we are forced to buy it abroad. A lot of supplies (including Chinese feed additives) go through European countries. So, their cost increases for end customers due to additional logistics and marketing expenses». «Obviously, considering the area of our country and geographic proximity to China, it would be more efficient for consumers from Siberia or Far East to buy these products directly from Chinese producers. It would make it possible to reduce the cost for a number of items, which would have a positive effect on the production cost of poultry or pork business in Russia» - says Petr Kanardov.

FEEDLOT
125252, Moscow, Beryozovaya Roscha passage, 12
Email: info@feedlot.ru
Telephone: +7(495) 649-62-88

Information –Analytical Company FEEDLOT offers services in the field of marketing analytics of the Russian feed market and feed additives. The company publishes and distributes its analytical reviews on the monthly basis. An analytical review includes detailed information on the import statistics (including import dynamics and value) of the main feed components — vitamins and amino acids.
The company FEEDLOT offers its clients specialized marketing research on various market segments and products, including market volume assessment of the of various types of feed additives, interviews with the leading producers of livestock products and development of the marketing plan based on the market needs and situation.

This release was published on openPR.