Oleg Radin, President of the Association of Deep Grain Processing Enterprises, will speak at the Grain of Russia – 2023 forum with a presentation “GPZ industry in new realities: import substitution & import dependence”.
The Russian industry of deep processing of agricultural raw materials is represented by 23 companies, whose revenue amounted to 170 billion rubles in 2021. Every year, companies in the industry process more than 2.5 million tons of grain. More than 6,000 people are directly involved in the enterprises of the industry, and thousands more jobs have been created in related and service companies. Every year the industry shows a stable growth in production.
The industry’s products are high-margin and important for the country’s food security. Therefore, government agencies provide various measures to support enterprises. For example, on December 8, 2022, Prime Minister Mikhail Mishustin signed an order to send more than 1.1 billion rubles to the Volgograd Region. The decision will make it possible to recover part of the direct costs incurred during the construction of a plant for deep processing of corn grain in the region. The company produces starch, starch syrup, maltodextrin, corn gluten and other types of products.
Relative to the period of the last year, the production of almost all products of the nomenclature has increased. This is due to partial import substitution, as well as stocks of consumer companies “for future use”. For 9 months of 2022, the production of the main types of products increased: native starches – by 9%, modified starches – by 41%, maltodextrin – by 24%, fructose by 16%, glucose by 3%.
The export market for the supply of products is very diverse. At the same time, the export of products of deep processing is increasingly focused on the countries of the Middle East, Africa and South America. The main markets for wheat starch are Turkey and Serbia. Cornstarch is supplied to Colombia, Ivory Coast, Ecuador and other countries. Gluten is mainly exported to Norway, Turkey, USA. Starch molasses – to Burkina Faso, Turkmenistan, Mongolia, Uzbekistan, Ecuador. The main volume of dry glucose syrup is exported to Lebanon, Jordan, Uzbekistan. Maltodextrin sales markets include more than 40 countries, including Côte d’Ivoire, South Africa, UAE, Chile, Egypt, Colombia, Ghana, Turkey, Dominican Republic. Cationic modified starches go to Mongolia, Azerbaijan, Uzbekistan, Tajikistan. Modified starches used in the production of corrugated cardboard and in drilling wells are exported to Iraq, Georgia, Uzbekistan, Turkey, Tajikistan, Turkmenistan.
The main difficulties for the industry in 2022 were associated with the withdrawal from the Russian market of suppliers of equipment, components and chemical components necessary for the production of products. Also, a ban on the export of lysine and zero import duties were introduced for amino acid producers.
The cost of grain and export duties on it favorably affect processors in general. However, problematic issues are brewing in the technological equipment of enterprises. The increase in the cost of logistics of components and equipment from 20 to 40%, as well as the destabilization of supplies, reveals the risks of downtime for industry enterprises.
For certain segments, such as food modification of starches, there is a risk of shortage of raw materials. Waxy corn is either not available or there is no native starch from such corn, which creates a risk of shortage of ingredients, primarily for the meat and dairy industries.
The presentation will cover the results of the industry for 2022, forecasts for the development of the market in 2023. Statistics on production, imports and exports of the main types of value-added products will be presented. As well as, Oleg Radin will talk about promising areas of investment in the industry and the possibilities of import substitution.
The presentation will take place at the VI session of the Grain of Russia – 2023 forum. You can register for the event on the official website. http://events.agbz.ru/
Forum Organizing Committee: Agribusiness Journal
For participation: +7 (909) 450-36-10, +7 (960) 476 53 39
For speaking questions: +7 (988) 248-47-17
e-mail: events@agbz.ru
Full version on the website Deep processing of grain in new realities
