Russia’s sector for the deep processing of grain is demonstrating remarkable resilience and growth, according to a recent report from the Association of Grain Deep Processing Enterprises, “Soyuzkrakhmal.” In the first half of 2024, production of native starches reached approximately 205.5 thousand tons, a solid increase from the 192 thousand tons produced in the same period last year. This positive trend underscores the industry’s stability and its strategic role in import substitution, despite ongoing challenges in the international market.
The growth is not uniform but reflects strategic priorities and investments. The foundation of the industry remains corn, wheat, and potato starches.
- Corn starch production led the pack, exceeding 172 thousand tons, a 6% year-on-year increase.
- Wheat starch output saw a slight dip of 4%, totaling 23.7 thousand tons.
- Potato starch production grew impressively by 18%, from 5.3 to 6.3 thousand tons.
The most dramatic growth was observed in value-added products. Output of modified starches skyrocketed by 23%, from 52.2 to nearly 64.2 thousand tons. This surge is attributed to massive capacity expansions by key players like “Aston Krahmalo-Products” in Ryazan Oblast (+200%) and “Amilko” in Rostov Oblast (+30%).
The production of sugary starch products, critical for the food industry, also saw broad-based growth:
- Glucose-fructose syrups (GFS): 147.2 thousand tons (vs. 142.4 kt)
- Starch syrups: 246 thousand tons, a 2% increase, driven by confectionery demand.
- Maltodextrins: A significant jump to 29.6 thousand tons (from 24.2 kt), largely due to a 45% output increase from the company “NewBio.”
The report also highlights strength in feed ingredients. Production of corn gluten rose to 30.2 thousand tons, while output of the essential amino acid lysine for compound feed reached 70.2 thousand tons, an increase of nearly 10,000 tons year-on-year, supplied by plants in Belgorod and Tyumen regions.
The H1 2024 data paints a clear picture of a Russian deep-processing sector that is not only recovering but aggressively expanding. This growth is multifaceted: it is driven by capacity modernization (evident in the corn gluten and modified starch figures), responsiveness to domestic market demands (e.g., confectionery syrups), and a strong strategic push toward import substitution and food security. For farmers, this translates into a more robust and stable domestic market for corn and wheat, with an increasing emphasis on quality for industrial processing. For agronomists and engineers, the trends underscore the importance of optimizing crops for both yield and specific functional properties required by processors. The sector’s overall health is a positive indicator for the entire Russian agricultural value chain, reducing reliance on imports and capturing more value from raw commodities within the country.
