On January 1, 2017, 10 enterprises in the starch industry were accounting for 100% of the total goods produced.
In 2017, output of starch syrup in Russia amounted to 499.5 thousand tonnes, having increased by 4.5% against 2016. In the first quarter of 2018, production increased again, by 4.2%, reaching 124.7 thousand tonnes. It should be noted that, after a decline in 2014, indicators have been growing year to year during the following time periods, even though growth rates have been slowing down. Production of glucose and fructose syrups in the country amounted to 164.4 thousand tonnes in 2017. Leadership in starch and syrup product output in Russia is being held by “Cargill” – in particular, according to “ID-Marketing”, the company accounted for 76% of the total volume of glucose and fructose syrup production.
Production of native starches has been demonstrating a decrease in growth rates as well. In 2017, output of native starches remained virtually at the level of 2016 and equaled 228.9 thousand tonnes. In the first quarter of 2018, indicators increased by 34.7%, whereas volumes in physical terms reached 69.5 thousand tonnes.
Production of modified starches (excluding dextrins) in the country is significantly lower than that of native starches – the former amounted to 20.5 thousand tonnes in 2017 and 10.2 thousand tonnes in January–March 2018. Regarding the segment of dextrins, in 2017 Russia produced 9.5 thousand tonnes thereof, while in the first quarter of the current year indicators remained virtually at the level of the similar period of the previous year – 2.26 thousand tonnes. According to “ID-Marketing”, the bulk of dextrin production falls on “Zvyaginsky Krakhmalny Zavod (Zvyaginki Starch Plant)” LLC (Oryol region). The segment of modified starches is more dependent on imports than the segment of native starches. Whereas the share of imports in the apparent size of the native starch market equaled 15.4% in 2017, according to “ID-Marketing”, in the segment of modified starches they occupied 77%.
The dynamics of modified starch imports into Russia have been multidirectional in nature. In 2017, 95.6 thousand tonnes of modified starches (including dextrins) were imported into the country, which is 9.4% higher than a year earlier. In January–March 2018, the volume of supplies remained at the level of the first quarter of 2017.
In the overall structure of imports, the share of dextrins occupies no more than 1% in volume terms.
Compared with 2015, imports of modified starches converted to esters or ethers increased by 1.1% and reached 77 thousand tonnes. In 2017, Russia imported 7.8% more products within the category than during the previous year. In the first quarter of 2018, volumes of supplies grew by 2.2% to the similar period of 2017. The highest volume of imports fell on goods produced in the European Union. In 2017, the French company “Roquette Freres” had the leading share of 24.1% among foreign producers in imports of modified starches converted to esters and ethers. “KMC Kartoffelmelcentralen Amba”, a major Danish manufacturer of potatoes and derived products was second in volumes of supplies, accounting for 14.5% of the total volume. “Ingredion Incorporated” was last among the three leaders, having occupied 10.9% in imports of the goods in question in 2017.
In the past year, imports of modified starches of other varieties have increased substantially. Compared with 2016, volumes of imports increased by 17.6%. In the first quarter of 2018, imports of products in the category declined by 21% against the similar period of the previous year. Among foreign manufacturers, leadership in imports of other modified starches in 2017 was held by “SMS Corporation” Co., Ltd. with the share of 19.5% in the total volume of supplies. The top 3 companies also included “Ingredion Incorporated” and “Eiamheng Modified Starch” Co., Ltd, which provided 9.7 and 9.4% of imports respectively.
In 2017, Russian companies raised their volumes of imported dextrin purchases by a factor of 2.5. Said dynamics persisted during the first three months of 2018. Compared with January–March 2017, imports of the products in question demonstrated 83.8% growth. The bulk of supplies of dextrin to Russia in 2017 – namely 79.4% in the total volume – was accounted for by “Roquette Freres”.
Apart from modified starches, there are a number of other products demand for which is constantly growing, but has been fully covered solely by imports up until now – for instance, crystalline glucose and maltodextrin. However, in 2018 the situation is expected to change dramatically. “Krakhmalny Zavod (Starch Plant) Gulkevichsky” LLC in Krasnodar Krai has already started producing maltodextrin with a wide scope of application on its newly launched high-tech automatic production line, covering volumes sufficient for full import substitution in the Russian market.
In 2017, imports of maltodextrin into Russia increased by 5.2% compared with 2016 and reached the level of 30.2 thousand tonnes. In the first quarter of 2018, on the contrary, supply volumes dropped by 26.4% to the similar period of the previous year against the backdrop of expected domestic output. The Chinese “Heilongjiang Haotian Corn Developing” Co., Ltd ranked first in imports of maltodextrin into Russia in 2017; it accounted for 20.1% in the total volume. Compared with 2016, its volumes of supplies demonstrated an increase by 41.5%. In the first quarter of 2018, imports of maltodextrin produced by said manufacturer decreased by 19.6%. The second producer in the rating was “Roquette Freres”. The company accounted for 15.2% of the total volume of maltodextrin supplies to the Russian Federation in 2017. The top 3 producers also include “Zhucheng Dongxiao Biotechnology” Co., Ltd having accounted for the share of 12.6% in imports of maltodextrin into Russia in 2017.
According to estimates by “ID-Marketing”, the volume of imported crystalline glucose supplies to the country amounted to 31.2 thousand tonnes in 2017, exceeding the indicator of the previous year by 17.9%. However, in the first quarter of 2018, imports declined by 5.4% against January–March 2017. Among foreign producers supplying crystalline glucose to the Russian Federation, Chinese manufacturer “Hulunbeier Northeast Fufeng Biotechnologies” Co., Ltd. was the leader in volumes. In 2017, the company’s share in the total volume of crystalline glucose imported into Russia equaled 35%. “Hulunbeier Northeast Fufeng Biotechnologies” is part of “Fufeng Group”. The aforementioned “Roquette Freres” from France was second in volumes of crystalline glucose supplies, having accounted for the share of 24% in 2017. The last of the three leaders in 2017 was another Chinese manufacturer of crystalline glucose – “Zhucheng Dongxiao Biotechnology” Co., Ltd with the share of 7% in the total volume of imports.
All in all, the leading positions in the structure of Russian imports of starch and glucose products are occupied by Chinese manufacturers.
Research by the Company “ID Marketing”