The starch market today is promising not only for existing players, but also for potential investors.
In the world, the annual consumption of native starch is estimated at 35 million tons, syrups (including HFS) - 50 million tons, modified starches - 10 million tons. The main sources of starch extraction are four crops: corn, wheat, cassava and potatoes.
The Russian market for a number of products such as native starches, various types of molasses and glucose-fructose syrups is quite stable. Both in 2016 and in 2017, the volumes of production of native starch amounted to about 230 thousand tons, starch syrup - 499 thousand tons and HFS - about 165 thousand tons.
However, the production of modified starches is increasing. In 2017, 20,5 thousand tons were produced, and over 9 months of the current year, already 27 thousand tons. In addition, since the Gulkevichsky Starch Plant has launched the production of high-quality maltodextrin with a wide range of applications, in the very near future we will see a sharp increase in this indicator.
In the EU countries, the main direction of industry development is functional food products, greening production processes, energy conservation and restoration of natural resources. Eastern European countries have shown great interest in developing by-products of starch production and investing in new production lines.
In general, a few more country trends can be identified geographically. In the countries of Asia, the cultivation of cultivated areas of cassava and processing capacities continues. In North America, a stable, established market with major players has already formed. Among the countries of Latin America, Brazil is the fastest growing regional player. Africa is only forming a market, but despite the high potential of the business, the political risks in this geography are also high.
From grain, you can produce a wide range of products. For example, after processing starch, you can get about 70 food ingredients. As well as amino and organic acids, by-products: gluten / gluten, feed products.
It should be borne in mind that the most promising niches for starch processing in Russia are occupied. Companies either already successfully operate and increase capacity, or are commissioned in the near future.
However, do not forget about small, equally promising market segments, for example, the production of modified food starches E-1412, E-1422 and others. The market for each is not large enough, but in the aggregate - capacious and profitable. In addition, the financial stability of the enterprise depends not only on the production of the main product, but also on the quality of by-products.
At the same time, the implementation of projects for the deep processing of agricultural raw materials is associated with a set of risks that must be managed. Start-up companies should not forget to use the state support mechanisms laid down in regulatory enactments. For example, to participate in competitions on the Decree of the Government of the Russian Federation No. 1312 - to compensate for the costs of research and development as part of a comprehensive investment project.
It will also be useful to enter an industrial cluster, or create a cluster and participate in the competition by Decree of the Government of the Russian Federation No. 41 - to compensate for part of the costs (including R&D, certification, training) as part of joint projects with cluster members. To create an industrial (industrial) park by Decree of the Government of the Russian Federation No. 1119 - to compensate for the costs of utilities and transport infrastructure.
Potato starch production in Europe
The European leaders in the production of potato starch are Sweden, the Netherlands, and Germany. The complexity of growing and storing potatoes in these countries is very high, so the state is trying to support and stimulate European producers.
For example, potato farms and cooperatives are shareholders in a processing plant. That is, companies are interested in selling the final products of starch and its derivatives. The companies also have special agronomic services that provide them with high-quality seed material for the production of potatoes with a starch content of at least 20% and generally advise on its cultivation. In addition, potato producers receive loans for the purchase of seeds, fertilizers and fuels and lubricants, which is fixed in a future supply contract.
Thus, companies reduce the cost of growing potatoes. The profitability of enterprises is stable, because the yield is high, and the starch content in potatoes reaches 25%. At the same time, the consumption of potatoes per 1 ton of starch is reduced to 4,5 tons, and the specific energy costs for its processing are reduced.
Compared to other native starches, potato starch has a lower calorie content and a higher content of minerals. The energy value of 100 g of potato starch (in kcal / kJ) is 299/1251 (for comparison, corn - 329/1377). Potato starch is used mainly for food purposes (92,6%), and even goes on retail (49,4%). Potato starch is a part of sausages (18,2%) and fruit and berry jelly (12,3%).
For technical purposes, the paper industry (3,7%), various special industries (1,6%), and dextrin production (1%) will not do without potato starch. In the pharmaceutical industry, potato starch is used in tablets and powders.
Among the largest producers of potato starch in the European Union, several companies can be distinguished. The Potato Cooperative AVEBE (1919) is a world leader in the production of potato starch, with sales of € 560 million and a net profit of € 11,8 million for 2014. The KMC KARTOFFELMELCENTRALEN Potato Cooperative (1933) provides sales of € 127 million and a net profit of € 18,8 million for 2014. The private company EMSLAND GROUP (1928), the largest producer of potato starch in Germany with sales of 520 million € for 2014, closes the top three.
What is stopping Russian enterprises?
At the moment, Russian producers of potato starch are much inferior to European companies. And the reasons are actually enough. This includes a shortage of qualified personnel, a lack of necessary production infrastructure, a shortage of borrowed funds from credit institutions, a weak innovative component, a complex value chain, weak marketing competencies and price manipulation by global players, venture risks, and much more.
Today, the average payback period for production in Russia is 10 years, the minimum investment in this case is from 15 billion rubles. Unfortunately, few are willing to invest such “long money” in agriculture.
However, in recent years, due to sanctions and other economic difficulties, the market has become more focused on domestic producers. Is this not a chance to prove itself while competition and dumping by foreign companies is practically absent? Time will tell how the domestic market will develop, but do not discount positive trends and increase production in recent years.
A source: https://agrovesti.net