Association «Soyuz starch» presented the results of the industry for 2022. The deep grain processing industry continues its slow but steady growth. In 2022, the production of modified starches and maltodextrin increased significantly - import substitution is taking place in these product categories. In 2022, due to the increase in the cost of logistics, the complication of financial transactions and the destabilization of supplies, both exports and imports of a number of products of the grain deep processing industry have significantly decreased. Government agencies have developed various mechanisms to support 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 2022 in the industry. Last year, companies faced new challenges: to establish new supply chains for equipment, components, enzymes and reagents. Also, industry companies tried to increase capacity, increase output, and replace some categories of imports. In general, 2022 ended with positive dynamics for the industry.
The Russian branch of deep grain processing processes about 2,5 million tons of grain and produces about 1 million tons of finished products. This industry in Russia still remains in the status of a niche, but it has every chance for development, launching new enterprises, production lines and entering new export markets. Several major projects are under development.
The branch of deep processing of grain is actively supported by the state. For example, starch producers are provided with investment loans for the creation or modernization of enterprises and preferential loans for the purchase of raw materials for further processing. There is also a measure to reimburse the costs of logistics when exporting products, reimbursement of costs when companies participate in exhibition events and other support measures.
New provisions of the Federal Law "On Grain" came into force, according to which the FSIS "Grain" was developed. In 2022, reporting in the system for processors was voluntary, but almost all companies in the industry began to work in the traceability system. From March 1, 2023, the provision of information on grain processing products to the system has become mandatory.
Taking into account the state support measures provided, in recent years the industry has shown a significant increase in the volume of manufactured products (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 product line, 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 Association estimates, in 2022, the largest increase (by 39%) is observed in the production of modified starches, which is associated with the need to replace imported analogues and consumers switch to domestic products - this year, the production of various types of food modifications of starch amounted to 94 tons .
The production of the amino acid lysine, which is produced in Russia by two enterprises, increased by 22% over the year. In 2022, the output of domestic L-lysine sulfate amounted to 142 tons.
Other starch-based products showed an increase of 1% to 10% (Table 1). The production of dextrins decreased by 72%, but this product occupies a small segment in the industry.
Table 1 - Production of starch and starch products, tons
2019 | 2020 | 2021 | 2022 | Dynamics 2022 to 2021, % | |
---|---|---|---|---|---|
Starches, other than modified (native) | 294 654 | 324 914 | 354 032 | 374 812 | 6 |
Dextrins | 8 165 | 9 526 | 10 5324 | 2 939 | -72 |
Modified starches | 58 804 | 61 103 | 68 006 | 94 355 | 39 |
Glucose-fructose syrups | 152 504 | 200 625 | 260 002 | 278 190 | 7 |
Maltodextrin | 19 131 | 20 073 | 49 773 | 54 960 | 10 |
Molasses starch (glucose syrups) | 466 648 | 467 235 | 476 940 | 494 103 | 1 |
lysine | 80 000 | 90 000 | 117 000 | 142 729 | 22 |
According to the Federal Customs Service, imports of starch and its derivatives have decreased this year for most of the main products. The exception was lysine in two forms (sulfate and monohydrochloride), the import of which increased by 37%, which was facilitated by the zeroing of import customs duties (Table 2).
The largest decrease in 2022 by 2021 occurred in the category of starch syrup (glucose syrups) - 109 times. Imports of maltodextrin decreased by 71%, imports of dextrins decreased by 59%, modified starches by 46%, native starches by 24% and glucose-fructose syrups by 4%, respectively, less.
Table 2 - Import of starch and starch products, tons
2019 | 2020 | 2021 | 2022 | Dynamics 2022 to 2021, % | |
Starches, other than modified (native) | 22 363 | 24 574 | 40 225 | 32 341 | -24 |
Modified starches | 95 958 | 94 656 | 103 541 | 71 076 | -46 |
Glucose-fructose syrups | 422 | 257 | 5 467 | 5 261 | -4 |
Dextrins | 1 079 | 889 | 1 489 | 938 | -59 |
Maltodextrin | 14 625 | 10 038 | 5 740 | 3 359 | -71 |
Molasses starch (glucose syrups) | 4 082 | 794 | 8 320 | 76 | -10 847 |
lysine | 60 834 | 53 352 | 43 130 | 68 783 | 37 |
Exports of high value-added products also fell significantly in 2022 for major products due to market redistribution and replacement of domestic demand.
The largest decrease in exports by 542% is observed in the export of lysine - 7 thousand in 442. This is due to the ban on the export of lysine outside Russia, which lasted until the end of 2022.
In other categories, a significant decline in 2022 compared to 2021 occurred in glucose-fructose syrups, which were exported 273% less - 394 tons. Starch syrup is 226% less - 7 tons, modified starches - 442% less, maltodextrin - 61% less. Export of dextrins increased by 8% (Table 90).
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. Glucose syrups in liquid form are exported to Turkmenistan, Uzbekistan. The main volume of dry glucose syrups is exported to Lebanon and Jordan. 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 oil production are exported to Iraq, Georgia, Uzbekistan, Turkey, Tajikistan, Turkmenistan.
Table 3 - Export of starch and starch products, tons
2019 | 2020 | 2021 | 2022 | Dynamics 2022 to 2021, % | |
Starches, other than modified (native) | 29 279 | 26 257 | 48 814 | 38 366 | -27 |
Modified starches | 7 151 | 7 484 | 8 142 | 5 072 | -61 |
Glucose-fructose syrups | 852 | 334 | 1 470 | 394 | -273 |
Dextrins | 461 | 461 | 166 | 1 705 | 90 |
Maltodextrin | 981 | 1235 | 13 536 | 12 577 | -8 |
Molasses starch (glucose syrups) | 19 834 | 33 764 | 24 250 | 7 442 | -226 |
lysine | 1 652 | 736 | 616 | 96 | -542 |
To date, the main types of raw materials for the production of grain starch in Russia traditionally remain corn and wheat. Moreover, the segment of starch from corn occupies the largest share in the total volume of consumption, both in kind and in monetary terms.
Cornstarch production is up year-over-year with 2022 tons produced in 316. Imports amounted to 599 tons and exports 5 tons. Cornstarch is supplied to Colombia, Ivory Coast, Ecuador and other countries (Diagram 262).
Diagram 1 - Corn starch, tons
Potato starch production remained at the same level - 11 tons in 131 against 2022 tons in 11. Imports of potato starches slightly decreased, amounting to 483 tons in 2021 compared to 10500 thousand tons in 2021. Exports dropped significantly to 4800 tons per year (Diagram 2020).
Diagram 3 - Potato starch, tons