As Russia’s grain and potato deep processing industry enters 2026, it does so as an “emerging but accelerating” market. While the country has successfully localized the production of basic starches and syrups, it remains heavily dependent on imports for high-margin biotech ingredients. According to Oleg Radin, President of the National Union of Grain Processers (Soyuzkrakhmal), 2025 delivered mixed results. Total native starch production edged up 2.6% to 417,400 tons, driven entirely by a 5.5% increase in corn starch. However, wheat starch output fell by nearly 20% due to competition from cheaper corn alternatives, and potato starch production dropped 9.8% to just 10,400 tons. The potato starch sector faces a critical raw material bottleneck: high-quality potatoes are more profitable to sell fresh to retailers, while affordable industrial-grade varieties are virtually nonexistent. Modified starch production also declined by 9.3% due to reduced demand from the oil drilling sector, and syrup output was impacted by the new sugar tax on beverages. The sole bright spot was lysine sulfate, which saw record growth of 11.9%, reaching 152,500 tons, fueled by demand from the animal feed and aquaculture industries.
Investment, Consolidation, and the Path to 2030:
Despite the mixed statistics, the industry is poised for transformation. A wave of new large-scale investment projects is underway, including corn and pea processing facilities in the Rostov, Tula, and Tyumen regions, alongside capacity expansions at industry leaders like Amylco and Rustark. These projects signal a shift beyond basic commodities toward crystalline glucose, polyols, and organic acids—products central to industrial biotechnology. The sector is also expected to consolidate, moving away from small, inefficient “mono-product” plants toward larger, more flexible facilities capable of processing 800–1,200 tons per day, mirroring the Turkish model. However, significant hurdles remain, including a critical reliance on imported Chinese processing equipment, high logistics costs that erode export margins, and insufficient state support. Looking ahead to 2030, Soyuzkrakhmal forecasts that if all announced projects are realized, total processing volumes could grow from 2.5 million to 3.5–4 million tons of grain annually. Achieving this will require deeper integration into the bioeconomy, greater cooperation with Asian markets, and a more predictable investment climate.
