Association «Soyuz starch» presented the results of the industry for 2021. The deep grain processing industry continues its slow but steady growth. In 2021, the production of maltodextrin and lysine increased significantly - in these product categories, import substitution and an increase in exports are taking place. Government agencies have developed various mechanisms for the development of the industry - support measures are already in place and used by companies.
The Association of Deep Grain Processing Enterprises highlights a number of key events in 2021 in the industry. After a difficult 2020, industry companies tried to build up capacities, increase output and exports of products, and replace some categories of imports. In general, 2021 ended with positive dynamics for the industry.
Among the measures taken at the state level that contribute to the development of the industry, it should be noted the system of normative legal acts, which includes state programs, normative acts of both the federal and regional levels.
Thus, deep processing enterprises actively participate in the implementation of the federal program "Export of Agro-Industrial Complex Products", within which the emphasis is on the creation of a new commercial mass of agro-industrial complex products, including high value-added products through technological re-equipment of the industry and supporting measures.
The main and necessary component of state support for the industry is the possibility of obtaining preferential loans. Concessional lending increases the financial efficiency of investment projects and significantly reduces the risks of entrepreneurs at the most difficult - the initial stage, which leads to an improvement in investment activity in the country and, accordingly, brings tangible revenues to the budget.
This mechanism is legally enshrined in Decree of the Government of the Russian Federation of April 26, 2019 No. 512, as well as in Decree of the Government of the Russian Federation of December 29, 2016 No. 1528. The preferential interest rate is 1-5% depending on the bank, while the loan term for short-term loans is up to 1 year, and from 2 to 15 years for investment ones. Possible purposes of lending are the payment of wages, the purchase of grain for further processing, the purchase of equipment, construction, reconstruction and technical re-equipment, as well as the modernization of enterprises.
A significant difference in the mechanisms is the mandatory condition for obtaining a soft loan. Within the framework of Decree of the Government of the Russian Federation No. 512, the need to conclude an agreement on increasing competitiveness is fixed, under which the manufacturer has an obligation to comply with the values of production development indicators. Within the framework of Decree of the Government of the Russian Federation No. 1528 - compliance with the criterion for the production of processed products from raw materials produced in the territory of the Russian Federation, the volume of which must be at least 70%, with the exception of foreign-made raw materials, analogues of which are not produced in the Russian Federation.
A separate mechanism is the possibility of reimbursement of part of the direct costs incurred (20% of the actual cost of the facility) for the creation and (or) modernization of facilities for the processing of agricultural products, within the framework of Decree of the Government of the Russian Federation of February 12.02.2020, 137 No. XNUMX.
The government support mechanism provided within the framework of Decree of the Government of the Russian Federation dated September 15, 2017 No. 1104 has the greatest demand among companies - exporters of the industry. According to which, compensation is provided for 25% of the costs of logistics costs for manufacturers and suppliers of agricultural products, while transportation and shipment of products is carried out from points of departure located on the territory of the Russian Federation to final destinations by all means of transport.
New provisions of the Federal Law No. 4973-1 “On Grain” came into force, according to which the Federal State Information System “Grain” was developed. FSIS "Grain" is designed to automate the processes of collecting, processing, storing and analyzing information in the field of circulation of grain and grain processing products, in order to ensure traceability.
Thanks to the state support measures provided, in recent years the industry has shown a significant increase in the volume of products received (Table 1), in connection with which there is a systematic decrease in dependence on imports of a number of high value-added products (Table 2), an expansion of the range of manufactured products, and also the possibility of entering new international markets (Table 3).
The dynamics of the industry from year to year shows a slow but steady growth. According to Rosstat and the Association’s estimates, in 2021, the largest increase (almost 2 times) is observed in the production of maltodextrin, which is associated with the systematic replacement of the imported analogue and the transition of consumers to the domestic product – this year the output of this starch product amounted to 39932 tons.
The production of lysine increased by 30% over the year, which is produced in Russia by two enterprises - CJSC Premix Plant No. 1 and JSC AminoSib. In 2021, the output of domestic L-lysine sulfate amounted to 117000 tons.
Taking into account the work at full capacity of three enterprises - Cargill LLC, Aston Starch Products LLC and Biotech-Rosva JSC - the production of glucose-fructose syrups increased by almost a third - 258975 tons this year. Other starch products showed growth from 1,2% to 9,5% (Table 1).
Table 1 - Production of starch and starch products, tons
2018 | 2019 | 2020 | 2021 | Dynamics 2021 to 2020, % | |
Starches, other than modified | 280 889 | 294 654 | 324 914 | 346 283 | 6,6 |
Dextrins | 9 064 | 8 165 | 9 526 | 10 429 | 9,5 |
Modified starches | 45 928 | 58 804 | 61 103 | 62 941 | 3,0 |
Glucose-fructose syrups | 174 722 | 152 504 | 200 625 | 258 975 | 29,1 |
Maltodextrin | 0 | 19 131 | 20 073 | 39 932 | 98,9 |
starch treacle | 464 216 | 466 648 | 467 235 | 476 532 | 1,2 |
lysine | 68 000 | 80 000 | 90 000 | 117 000 | 30,0 |
According to the Federal Customs Service, imports of starch products this year accounted for the largest growth compared to 2020 in the category of native starches (imports amounted to 40225 tons, which is 63,7% more), dextrins (imports - 1489 tons, which is 67,5% more ) and starch syrup (import - 6 tons, which is 066% more).
Imports of wheat and potato starch almost doubled, amounting to 10500 tons of wheat starch in 2021 compared to 4800 thousand tons in 2020. The import of potato starch in 2021 amounted to 22500 tons, and in 2020 - 12900 tons. This can be explained by the increased demand of consumers who store ingredients for future use. The decrease in the production of potato starch was due to a poor potato harvest, as well as due to an increase in the export of wheat starch by BioOperations LLP in the North of Kazakhstan. Imports in 2021 of corn starch amounted to 4349 tons, cassava starch 1476 tons (Table 2).
In the categories of maltodextrin and lysine, there is a gradual import substitution due to the work of Russian enterprises. Maltodextrin imported to Russia in 2021 is 5740 tons, which is 42,8% less than in 2020. Lysine - 43130 tons, which is 19,2% less than last year.
Table 2 - Import of starch and starch products, tons
2018 | 2019 | 2020 | 2021 | Dynamics 2021 to 2020, % | |
Starches, other than modified | 28 650 | 22 363 | 24 574 | 40 225 | 63,7 |
Modified starches | 98 062 | 95 958 | 94 656 | 103 541 | 9,4 |
Glucose-fructose syrups | 3 334 | 1 761 | 2 445 | 2 254 | -7,8 |
Dextrins | 917 | 1 079 | 889 | 1 489 | 67,5 |
Maltodextrin | 24 351 | 14 625 | 10 038 | 5 740 | -42,8 |
starch treacle | 9 386 | 6 942 | 4211 | 6 066 | 44,1 |
lysine | 85 144 | 60 834 | 53 352 | 43 130 | -19,2 |
Exports of high value-added products in 2021 increased compared to last year for exports of maltodextrin, native and modified starches, and decreased for exports of syrups, dextrins and lysine. Exports of wheat starch in 2021 amounted to 2932 tons, corn starch 43335 tons, potato starch 2416 tons.
The largest export growth of 996% is observed in the export of maltodextrin - 13536 thousand in 2021. For other categories, there is a significant decline this year when compared to 2020. Glucose-fructose syrups were exported 84,3% less - 428 tons. Dextrins are 64% less - 166 tons. Starch syrup is 29,4% less - 23822 tons (Table 3).
Table 3 - Export of starch and starch products, tons
2018 | 2019 | 2020 | 2021 | Dynamics 2021 to 2020, % | |
Starches, other than modified | 33 428 | 29 279 | 26 257 | 48 814 | 85,9 |
Modified starches | 5 852 | 7 151 | 7 484 | 8 142 | 8,8 |
Glucose-fructose syrups | 886 | 852 | 2 728 | 428 | -84,3 |
Dextrins | 217 | 461 | 461 | 166 | -64,0 |
Maltodextrin | 266 | 981 | 1235 | 13 536 | 996,0 |
starch treacle | 27 949 | 19 834 | 33 764 | 23 822 | -29,4 |
lysine | 736 | 616 | -16,3 |
“In 2021, our industry showed growth in many products after a difficult 2020. The current support measures have given a tangible result in the development of the industry, but a large-scale growth of the industry is possible only if there is a separate program for the development of the industry, as well as a mechanism for centralized grain trading, in particular, the launch of a deliverable futures contract for wheat and corn, ”comments Oleg, President of the Soyuzkrakhmal Association Radin.
About Association "Soyuzkrakhmal": The Association of Deep Grain Processing Enterprises is a professional non-profit organization that promotes the strengthening and development of the domestic market for deep grain processing. The Soyuzkrakhmal Association was founded in 1998 and currently unites the largest enterprises in the industry, providing about 80% of native starch, more than 75% of the domestic production of native starch, maltodextrin and glucose-fructose syrups, 90% of modified starches and 100% of glucose syrups and L-lysine sulfate. On May 20, 2022, the VI International Conference "ProStarch 2022: market trends for deep grain processing».