Review of the Russian Market of Starch ProductsResearch by the Company “ID-Marketing”
The main volume in the structure of starch production in the country falls on starch syrup and natural starches – in particular, corn starch.
In 2016 production of starch syrup in Russia amounted to 463.3 thousand tons, which is 6% higher than a year earlier. In the first quarter of 2017, production of starch syrup reached 119.6 thousand tons, growth equaling 5.3% to the similar period of 2016. In particular, the increase in starch syrup output volumes was achieved due to positive dynamics in indicators of companies in the Central Federal District (+5.2% in the first quarter of 2017 against the first quarter of 2016).
The top three producers of starch syrup in Russia in 2016 were “Cargill”, “Aston” Group (combined volumes of “Krakhmalo-patochniy Zavod (Starch and Syrup Factory) “Novlyansky” OJSC and the former “Ibredkrakhmalpatoka” OJSC), and “Millerovsky Glyukozno-Maltozniy Kombinat (Millerovo Glucose and Maltose Factory)” OJSC (part of “Amilko” Group).
According to “ID-Marketing”, “Cargill” increased its volumes of starch syrup production by 4.5% over 2016. The overall volumes of starch syrup production by plants of “Aston” Group remained at the level of the previous year. “Millerovsky Glyukozno-Maltozniy Kombinat” by “Amilko” was third in volumes of starch syrup production in 2016 – compared to 2015, according to estimates by “ID-Marketing”, output of this product by the company declined by 3.8%. In the first quarter of 2017 production of starch by the company amounted to 17.9 thousand tons.
“Cargill” is also among the largest producers of glucose and fructose syrups in the country – until recently it has been holding a monopoly in the market. “Aston” Group is actively increasing volumes of glucose and fructose syrup output after the launch of production in its plant in Ryazan – in 2016 they grew by 35.5%. Significant growth in production of syrups by “Aston” was observed in 2014, when indicators increased by 2.2 times. In the first quarter of 2017, according to “ID-Marketing”, production of glucose and fructose syrups in Russia amounted to 35.7 thousand tons.
Production of natural starches has been growing year-on-year from 2011 to 2016. Growth in 2016 equaled 5.8% to 2015. At the same time, in the first quarter of 2017 a decline in output volumes of 15.9% was observed. The main volume falls on native corn starch – in 2016 its share amounted to 93%, according to “ID-Marketing”. “Cargill” is leading in the segment of natural starches. However, in 2016 production of corn starch by the company dropped by 10.9%. Its closest competitor, “Krakhmalniy Zavod (Starch Plant) Gulkevichsky” LLC, on the contrary, increased production volumes by 17.3% in 2016 – in the first quarter of 2017 volumes of production by this company from Krasnodar almost reached 9.1 thousand tons.
One of the new producers should be highlighted as well – “SP “Don” LLC in Voronezh region launched a starch and syrup plant with the capacity of 300 tons of starch products per day. Construction of the first production line started in January 2015 as part of the implementation of an investment project of the company, ‘Construction of a starch and syrup plant processing 150 tons of corn grains per day’. The planned annual corn processing volume is stated to be 50 thousand tons. In September 2016 production was launched. In the first quarter of 2017, production of corn starch at the plant amounted to 4.1 thousand tons.
Segments of deep grain processing depend on imported compounds and they have sufficient volumes of natural starch and syrup production. There is no production of dextrose inside the country. In Soviet times production of dextrose was performed by the Beslan maize plant, which ceased its operation.
Imports of dextrose into the country amounted to 26.4 thousand tons in 2016. The product mainly supplied is food glucose, which accounted for 91.4% of imports in 2016. The share of glucose for the pharmaceutical industry equaled 6.5%. During the first quarter of 2017 growth in imports of dextrose into Russia was recorded – compared to the first quarter of 2016 the volumes of supplies increased by 8.5%. The largest volume of dextrose imports fell on goods produced in China.
Among foreign producers supplying dextrose to Russia, the French “Roquette Freres” is the undisputed leader in volumes. In 2016 its share equaled 29.9% of the total volume of dextrose imported into Russia. In the first quarter of 2017, compared to the similar period of 2016, imports of dextrose by said manufacturer increased by 75%. The company second in volumes of dextrose in imports is “Hulunbeier Northeast Fufeng Biotechnologies co., ltd” (“Fufeng Group”) from China, which accounted for 20.7% of the overall volume. During the first quarter of 2017, imports of goods produced by the company increased by 3.5 times compared to the similar period of 2016. The three leading companies also include another Chinese producer of dextrose – “Zhucheng Dongxiao Biotechnology Co., Ltd”.
It should also be noted that in 2016, imports of natural starches, according to estimations by “ID-Marketing”, dropped by 10.9% against 2015. In the first quarter of 2017, on the contrary, growth to the first quarter of 2016 was observed and equaled 5.7%, while import volumes amounted to 7.7 thousand tons. Imports of modified starches amounted to 87.4 thousand tons in 2016, having slightly decreased compared to 2015. During the first quarter of 2017, indicators grew by 10% compared to the first quarter of 2016 and reached 21.2 thousand tons. Imports of starch sugar products in 2016 increased by 8%. In the first quarter of 2017, growth amounted to 52.8% to the similar period of the previous year – around 20.1 thousand tons.
All in all, during the past 5 years the share of foreign producers in the Russian starch market has been declining. In the segment of natural starches the share of imports equaled 23.5% of the visible market in 2012, whereas in 2016 the figure declined to 16.5%.
Research Company “ID-Marketing”