Text: Tatiana Karabut
Experimental factories for the production of ingredients for toothpaste, hyaluronic acid, and grain bioplastics are opening in Russia. We grow it more and more. But now we export it in "raw" form at one price, and we buy it in processed form - with vitamins or amino acids - already at a high price. The production of such products within the country will make it possible to get rid of import dependence, create thousands of jobs, earn many times more from exports and, as a result, lower prices for products for consumers.
If you export 50 million tons of grain not in "raw", but in processed form, the contribution to GDP may increase by 100-800 billion rubles, depending on the processed products, estimates the President of the Russian Biofuel Association Alexei Ablaev.
One of these plants for deep processing of grain was opened in the summer of 2019 in the Kaluga region. Rosva Biotechnological Complex processes wheat into glucose-fructose syrups, crystalline glucose, starch, feed mixtures, gluten and sorbitol, which is essential for the production of toothpaste and chewing gum. Another enterprise, Oka-Biotech, has so far produced only an experimental batch of hyaluronic acid from grain and now intends to build a serious industrial production. Now both sorbitol and hyaluronic acid are completely supplied to Russia from abroad. The global volume of the hyaluronic acid market, according to various estimates, is several hundred tons per year. According to the iMARS Group, the world production of sorbitol is more than 2,5 million tons. The Russian sorbitol market is 400 thousand tons (or 35 million dollars), estimates partner of the NEO Center company Vladimir Shaforostov.
There are more understandable projects for deep processing of grain, which have been working for several years, but have already partially or completely relieved us of our dependence on import for several important products. For example, the Gulkevichsky starch plant (Krasnodar Territory) produces maltodextrin (molasses). The volume of the Russian market for maltodextrin is now $ 34-35 million, Shaforostov estimates.
Belgorod Premix Plant N1 produces the amino acid lysine, which is indispensable for animal husbandry. Previously, it was completely imported from China and Europe. With the weakening of the ruble exchange rate, it has become an expensive pleasure to transport this amino acid from abroad. According to Feedinfo, lysine prices at the start of the year were the highest in eight years. Russian production in 2020 is estimated at 100-110 thousand tons (or about $ 170 million), while imports amounted to about 50 thousand tons last year, says Vladimir Shaforostov.
But so far we remain dependent on the import of many important components, which are also made from grain. Now 90% of feed additives and 100% of vitamins are imported for animal husbandry. Russia is still 100% dependent on citric acid supplies (about 60 thousand tons), adds Vladimir Shaforostov.
Several dozen more projects for deep processing of grain are at the design stage or frozen. Either there is no market or funds. We do not have a single biofuel production plant (again, from grain). In Russia, he will not break through. The West produces its own biofuel and has import duties. There, the obligation to add 5-10% of biofuel was enshrined in the law only after long lobbying by the agrarian deputies, Ablaev notes. “We need to make biofuel not because we have little fuel, but because we have a lot of grain. The harvest is constantly growing, and we cannot consume more inside the country. It needs to be recycled. Much more people will benefit from the production and sale of biofuels, especially in agriculture, than income from the production of conventional fuels, ”explains Ablaev. According to his calculations, if in Russia, as in Europe, add 5% of biofuel to gasoline, this will bring 4 thousand direct high-tech jobs, another 20 thousand indirect jobs, 12,54 billion rubles in tax revenues. Households will receive additional income in the amount of 46,38 billion rubles, the contribution to GDP will amount to 66,47 billion rubles.
So far, bioplastics from grain are not produced in Russia, although some large petrochemical companies have developed such projects. From the economic point of view, they are risky - large investments are needed. In the summer of 2019, construction of the Rustark complex began in the Lipetsk SEZ. The total investment is estimated at RUB 63 billion. It is assumed that at first it will produce modified starch, and at the next stage - bioplastics. True, there is no market for them in Russia yet. Many countries are now banning the use of non-degradable plastics, says Nina Adamova, senior analyst at Gazprombank's Center for Economic Forecasting. In Europe, a carbon dioxide tax is being introduced - it will be paid on all goods in the production of which CO2 is emitted. Sooner or later, Russia will come to the same, experts are sure. Our bioplastics will be required, but a little later.
The strong dependence of domestic prices on world prices also speaks in favor of grain processing. This problem became especially evident in the last season. The grain harvest in Russia in 2020 amounted to 133,5 million tons of grain, of which 49 million tons were exported. By December last year, world grain prices reached multi-year highs. And this was reflected in Russian prices.
The federal authorities have long been talking about the need for deep processing of agricultural products and not only grain. Russian President Vladimir Putin spoke about this back in 2017. But it seems that with the introduction of export duties (from June 2 for wheat, it will become constant and will be calculated on the market price), the business has been given an unambiguous signal not to postpone this issue any longer. At the last meeting with the Minister of Agriculture Dmitry Patrushev, Vladimir Putin only confirmed this. “We need to support high value-added exports,” he said.
In addition to traditional products, Russian enterprises are already increasing the production of deeply processed products - modified starches, plant protein concentrates, amino acids. Grain exporters have already seriously thought about investing in the production of high value added products, says Eduard Zernin, Chairman of the Board of the Union of Grain Exporters. But it doesn't have to be bioplastics or amino acids. We must start with simple products - the same flour and pasta. According to the expert, today there are requests for Russian flour even from its large producers - for example, Turkey. And for pasta, the almost dimensionless market is the countries of Southeast Asia, starting with China.
Not only grain
Products with high added value include both mid-value products (including meat products, sugar, flour, juices) and high-value products (chocolate and confectionery, canned products, animal feed, cheeses, sausages, wine, etc.) etc.), told the Ministry of Agriculture. At the end of 2020, exports of food and processing industry products increased by 13% to $ 4,5 billion compared to 2019.
In particular, the department considers confectionery and meat products to be one of the most promising areas in terms of increasing supplies to foreign markets. In 2020, confectionery exports amounted to $ 1,4 billion (57% more than in 2015). By 2024, supplies are expected to increase to $ 2 billion. Exports of meat and finished meat products last year increased by 43% and reached $ 1 billion. According to the forecast of the Ministry of Agriculture, by 2024 it will amount to more than $ 1,5 billion. In addition, the supply of fat and oil, dairy and fish products is actively developing, and the export of Russian wine is growing.
The state supports the production of such products with concessional loans. In addition, in 2021, the Ministry of Agriculture will launch new support measures for the development of agricultural production with high added value: compensation for part of the costs of creating and modernizing agricultural processing enterprises, as well as a preferential leasing program for the purchase of high-tech equipment.