Overhaul needed for Russian starch market
dipping sharply in the 1990s. When at its peak, up to 180,000 tons
of starch were manufactured in the USSR, while today maize and
potato starches combined make up about 60,000 tons. But according
to a report from Russian analyst Market Advice, the market capacity
could absorb 120,000 tons.
The Russian starch market could be on the road to recovery after dipping sharply in the 1990s. When at its peak, up to 180,000 tons of starch were manufactured in the USSR, while today maize and potato starches combined make up about 60,000 tons. But according to a report from Russian analyst Market Advice, the market capacity could now absorb 120,000 tons.
Present since the beginning of the 19th century in Russia - and launched at the same time as domestic glucose syrup - starches were principally manufactured from raw potatoes, and later from rice, wheat and corn.
During the 1990s manufacture of starch in Russia fell extremely rapidly - by up to 90 per cent. According to Market Advice, the basic problems of modern starch manufacture in Russia are unsatisfactory potato quality (rather low 'ability for starching' 12.5 - 13.5 per cent), basic equipment in an 'unsatisfactory' condition (up to 80 per cent), and the lack of state-of-the-art technologies for the processing of raw materials.
The most dominant domestic manufacturer of starches is Krakhmaloproducty (RKP) which produces about 40 per cent of the domestic market for maize starches, plus a new business producing wheaten starch with a capacity of 4,000 tons per year. In addition, according to Market Advice, RKP is the key competitor of Cargill in the Russian market for glucose syrup.
Domestic production of starches dropped so sharply in the 1990s that by the end of this period 80 per cent of the market was covered by imports. All the dominant European starch players are present in Russia - including Avebe, Lyckeby Starkelsen, Emsland-Staerke, Cargill, KMC, Amylum, and National Starch. In 2002 maize starch imports reached 8,000 tons, potato starch 100,000 tons, and modified starch approximately 50,000 tons.
The analysts predict vigorous developments in the Russian starch market with demand increasing by up to 8 per cent in the next 5-10 years.
Further information about the Russian starch market can be obtained from Market Advice.
