Over five years, the volume of production of products of deep grain processing (starches, gluten, etc.) has increased by 40%, and the volume of exports has doubled, said Oleg Radin, president of the association "Soyuzstarch".

 

For example, the production of corn and wheat starches has almost doubled since 2019, and the output of more modified starches in 2023 increased by 71% compared to 2019. Production of glucose-fructose syrups added 56%.

 

As a result, imports of advanced grain products in 2023 are down about 40,000 tons to 537,000 tons compared to 2022. We are now importing almost the same amount as in 2019.

 

Imports of maltodextrins (minus 85% by 2019), which is derived from starch, decreased the most. We were able to replace imports with our own product. The supply of lysine, an amino acid and an important feed additive, decreased by 46%. In 2022, the Russian Federation abolished duties on its import, which resulted in a significant increase in the country's stocks. In addition, Russia and Belarus have lysine production facilities. Imports of wheat gluten decreased by 83% due to the fall in its exports.

 

Radin notes that imports of native starches are minimal, with the exception of potato starch, as the country has no large enterprises for deep processing of potatoes.

The output of starch sticks and glucose-fructose syrups exceeds imports by a multiple. And imports of modified starches for two years decreased by almost one and a half times, to the level of 2019. However, the EU ban on their supply to Russia, introduced in 2022, had an impact here.

 

Thanks to the increase in domestic production of products of deep grain processing, it was possible not only to reduce the volume of imports, but also to increase exports. Over five years, the growth amounted to 97%, says Radin. For example, exports of maltodextrin have grown 35 times since 2019. In the last three years, supplies of deep grain processing products went mainly to countries in the Middle East, Africa and South America.

 

At the same time, only about 2% of the crop volume is sent for deep processing, and the market prospects are huge. We have learned to produce lysine, but we import other amino acids, as well as organic acids (acetic, lactic, citric, malic, tartaric, ascorbic and others). The direction of enzymes for the food industry is practically undeveloped.

 

"Now several large projects have been announced and are already being implemented in Russia, which will be able to replace imports in several important areas. However, Russian consumer industries need dozens more types of products that we fully import," says Radin.

atyana Savenkova, President of the Union of Food Ingredients Manufacturers, estimates that the Russian food ingredients market is worth $3.5 billion with an average annual growth rate of 6-7%. "Russia produces 30 names of food ingredients out of 349 authorized ones. This does not cover 3% of domestic demand," the expert adds.

 

In addition to products of deep grain processing, there are many other areas where there is a need for import substitution. While the level of self-sufficiency in starches is 56%, in vitamins - only 18%, enzymes - 8%, and we do not produce sweeteners, emulsifiers, organic acids and other ingredients at all. For example, Savenkova estimates the need for emulsifiers for confectionery production at 25 thousand tons per year.

 

The main suppliers for us are EU countries, Malaysia, Indonesia and India. But in recent years there has been a shift towards China and Turkey. We need about 70 thousand tons of organic acids (citric, lactic, malic and others) per year. Domestic production of food flavorings in Russia is estimated at about 20 thousand tons, while imports amount to 31.6 thousand tons. For some ingredients, parallel imports help. "To realize the long-term goal in the sphere of food security, it is necessary to achieve technological sovereignty - the development of production, technologies and competencies in the ingredients industry," says Savenkova.

Now there are support measures for the industry: compensation of R&D costs, soft loans, zero duties on equipment, etc. But this is not enough. For the development of production it is necessary to expand measures in the form of "capex" (compensation of capital expenditures), zero taxes, barrier duties and others. Intensification of work with scientific organizations and consumers is required.

 

Source: Rossiyskaya Gazeta