Russia’s Largest Lysine Manufacturer Deferred Production After Missile Attack

Russia’s largest Lysine Manufacturing Plant named Premix plant number 1 has suspended its production activity following a missile attack that took place on 31^st May 2023. The plant is located in the city of Shebekino and as per the knowledge this plant generally produces around 80,000 tons of Feed Lysine per annum which in turn successfully results in supplying about more than half of the downstream requests for Lysine within the Russian market. Additionally, it’s still unclear when the production activity will resume as this missile attack damaged the plant, significantly.

The missile attack on this Russian Lysine plant is just one of the consequences of the conflict in Ukraine by the Russian economy. The war between the two countries has also led to sanctions imposed by the West, which makes it harder for Russia to import or export goods. The disruption of production at its largest manufacturing unit in Russia will have a huge impact on the Russian cattle industry as it is an essential animal feed. In addition, this incidence will help other exporting countries like China, one of the largest exporters of Lysine around the world, to increase their prices for Lysine in the global market. The attack on Premix Plant number 1 has ruined the lives of the workers and their families, as well as the livelihoods of the importing countries that depend on Russia for Lysine, such as Kazakhstan, Sri Lanka, Armenia, etc.

One of the main consequences of the suspension in Russia is the increase in the price of Lysine all over the world as the deferment of the manufacturing in Russia leads to a decrease of the domestic and neighbouring countries’ supply of Lysine in Russia which in turn leads to an increase in the prices of Lysine. Lysine is one of the most important feedstock products for the agricultural economy as it provides a wide range of benefits to the end-users of meat and other animal resources. The second consequence of the suspension is the disruption of the global livestock industry as many farmers rely on Lysine for the feeding of their livestock. Therefore, the increase in Lysine prices has made it difficult for the farmers to produce livestock as they may have to change their feed mix, breed different types of cattle, or change the way in which they manage their Livestock.

Apart from that, the suspension of production in Russia has further led to increased demand for Lysine from other importers. This would put pressure on the Lysine producers in those countries, owing to which they might have to raise their prices. This could lead to higher prices for Lysine in all countries. These higher prices for Lysine could make it more difficult for some people to afford animal products, which could lead to an increase in food insecurity.

Overall, the disturbance of production in Premix plant number 1 of Lysine in Russia is just one example of the challenges that the global food supply is facing. The war in Ukraine has also disrupted the global food supply, and these challenges will likely continue to do so in the upcoming months.