Association Roskrakhmalpatoka commented on the results of the industry in 2019 and the impact of the current crisis on the starch products market. Over the past three years, Russian enterprises have been increasing the production of molasses, native and modified starches. Domestic factories specialize mainly in the production of native starch and sugary starch products. The share of modified starch production is much smaller, and import supplies dominate in this segment.
starch syrup traditionally is the leader among all domestic starch products. In 2019, Russian enterprises continued to increase production volumes: in 2019, the industry produced 595 tons in Russia, which is 992,9 tons more than in 20 and 875,3 tons more than in 2018. Tolskaya, Belgorod and Rostov regions are leaders in the production of molasses. Molasses is actively exported from Russia: last year, 103 221,1 tons of starch syrup were exported from Russia - a third of the total export volume. The volume of molasses import is insignificant - 2017 tons.
Production of native starches shows steady growth over the past few years. So, their production in 2019 in Russia amounted to 290 tons. For comparison, a year earlier, the country produced 757,4 tons, and in 281 - 224,9 tons. The main volume of native starches is produced in the central part of Russia, namely in the Tula, Tambov and Voronezh regions. And also in the south of Russia, in the Krasnodar Territory.
Domestic production modified starches while significantly inferior in volume to native starches, however, Russian plants are increasing momentum. In 2019, the production of modified starches in Russia amounted to 48 894,3 tons, which is 8 851,9 tons more compared to 2018. Half of this volume is produced in the Rostov region.
Dextrins production declining since 2017. So, in 2019, the volume of production amounted to 8 tons. For comparison, 164,7 tons were produced in 2018, and 9 tons in 064,2. Almost the entire volume of dextrins is produced by Zvyaginsky Starch Plant.
Production of fructose and fructose syrup also declined over the past year. In 2019, the industry produced 153 tons in Russia, which is 433,5 tons less than in 22. 423,2% of fructose and syrups from it are produced in the Tula region. High levels of starch and its derivatives in this area are associated with the work of a major player in the industry - the Cargill company.
The volume of imports has traditionally significantly exceeded the volume of exports. Import of starch and its derivatives in 2019 amounted to 96 tons, or $ 771,9 million in monetary terms. Modified starches account for half of all imports - 94 tons for a total of $ 55 million. Last year, starch products export amounted to 952,8 61 tons in the amount of 35 million US dollars.
The volume of imports of native starches is small compared to other starch products - 14 tons in the amount of 484,8 million US dollars. Last year, 13 tons of wheat starch, 2 tons of corn starch, 512,4 tons of potato starch, 2 tons of cassava starch, 254,9 tons of rice starch and 8 tons of other native goods were imported to Russia. starch. Although the export of native starches exceeds imports (017,3 935,5 tons), in monetary terms it is almost two times less, and amounts to 405,9 million US dollars. This is due to the fact that Russian starch is cheaper than imported starch. For example, corn starch is imported at a price of $ 358,8 per ton, and exported at a price of $ 18 per ton. Last year, domestic enterprises exported 118,3 tons of wheat starch, 7,9 tons of corn starch, 1 tons of potato starch and 350,2 tons of rice starch. The volume of imports of glucose-fructose syrups last year amounted to 681,81 1 tons, and exports - 396,7 tons.
For export native starches and starch syrup go mainly, the bulk - to the CIS countries. Russia imports mostly modified starches, which are imported from Western Europe, the USA and China.
“The industry performed well last year. Everyone expected an increase in production and consumption this year as well. The first quarter of 2020 showed unprecedented performance and demand exceeded supply. However, the situation quickly changed, delays in payments began, mainly from small companies - consumers of our products. We also observe the withdrawal of certain consumers, in particular such an industry as HoReCa. The cost of raw materials continues to rise, primarily wheat. At the moment, all of our companies are operating practically in the same mode. But we expect a slight decline in consumption in the near future. The current global crisis will have a significant and lasting impact on our industry, and possibly in unforeseen ways so far. However, the impact of this crisis will differ in different regions of the world. Therefore, we count on support from the state, ”comments Oleg Radin, president of the Association of starch and syrup.
About the Association: The Association of Russian manufacturers of starch and syrup products is a professional non-profit organization that promotes the strengthening and development of domestic production of starch products, advocating for the protection of the domestic market from unequal competition with foreign suppliers. The association was founded in 1998 and currently unites the largest enterprises in the industry, providing about 80% of the domestic production of starch, glucose syrups and amino acids.