Cereals (Russian market)

2024: Russia's largest buckwheat grain processing complex launched in Chelyabinsk region for ₽8,4 billion

In the Uvelsky district of the Chelyabinsk region, in December 2024, a new production and logistics complex of Resource LLC for processing buckwheat with a capacity of 60 thousand tons per year was commissioned. The volume of investments in the project amounted to ₽8,4 billion. Read more here.

2023

Production of corn cereals in Russia increased by 43% in 4 years

In 2023, approximately 89.8 thousand tons of corn cereals were produced in Russia. For comparison, in 2019, the volume of output was 62.7 thousand tons. Thus, over four years, the figure increased by about 43%, as stated in BusinesStat materials released on July 23, 2024.

Corn cereals serve as raw materials for the production of corn sticks, chips, cereals, bread, breakfast cereals, instant cereals, baby food, pharmaceutical products, animal and fish feed. In addition, it is used in the production of pastries and sweets. Significant players in the Russian market are Agrocomplex JSC named after N. I. Tkachev, Makfa JSC, Agro-Alliance LLC, Investprom-Opt Trading House LLC and Resource LLC.

In 2019, according to estimates, 62.7 thousand tons of corn cereals were produced in the Russian Federation. In 2020, the volume of output decreased by 10.6% and amounted to 56 thousand tons: the fall is associated with a decrease in gross corn collections in the country. In 2021, production rose by 20%, reaching 67.2 thousand tons, and in 2022 an increase was recorded at 29.7% with a final result of 87.2 thousand tons. In 2023, production rose another 3.1%.

The study says that during 2013-2023, gross corn collections in Russia increased by 43% (or more than 5 million tons). Thanks to this, cereal producers were able to maintain acceptable prices for their products, which contributed to maintaining the profitability of processing industries and increasing demand for corn cereals in the country. The withdrawal of foreign players from the Russian market against the background of the emerging geopolitical situation contributed to an increase in production in the industrial sector. Russian manufacturers, trying to occupy the vacant niche, increased production volumes and discovered new areas of activity.^[1]

Growth in sales of cereals by 5.8% to 1.64 million tons

At the end of 2023, retail sales of cereals in Russia reached 1.64 million tons, which is 5.8% more than in the previous year. The demand for these products in the domestic market has been growing steadily since 2019. This is stated in the materials of BusinesStat, published in early February 2024.

The review takes into account the sale of buckwheat, corn, semolina, oat, pearl barley, wheat and barley cereals, millet, rice, etc. Among the largest enterprises in the industry are Makfa, Agro-Alliance, Resource, Soyuzpishcheprom Association and Kombis.

According to estimates, in 2019, about 1.27 million tons of these products were sold in Russia. A year later, the volume of sales increased by 8.1%, reaching 1.37 million tons. During self-isolation amid the COVID-19 pandemic, buyers actively stocked up on essential goods and food with a long shelf life, which includes cereals. At the same time, the rush demand led to an increase in prices for these products. The situation was complicated by the fall in the ruble exchange rate and high quotes of the world market for all grain crops.

In 2021, the excitement subsided: an increase of 1.9% was recorded with a total result of 1.4 million tons, and in 2022 sales rose by 11.3%, amounting to 1.55 million tons. Due to high inflation and a drop in real incomes of the population due to the deteriorating geopolitical situation, demand has shifted towards inexpensive products such as rice and buckwheat. A high buckwheat harvest also contributed to sales growth. In general, in 2019-2023, the retail sale of cereals on the Russian market rose by 29.7%. The BusinesStat study notes that the growth of the industry was facilitated by an increase in the total population of the country through the accession of new territories.^[2]

38.5% increase in sales of instant porridge

In 2023, about 21 thousand tons of instant cereals were sold on the Russian market. For comparison, a year earlier, sales of these products amounted to 15.16 thousand tons. The growth was 38.5%, as reported in the BusinesStat study, the results of which are presented in early February 2024.

The review considers cereals based on various types of cereals: linseed, multi-varnish, oat, wheat, millet, rice, etc. This takes into account products with and without additives in various types of packaging. Among the key players in the Russian market are Mareven Food Santral, WBD, Makfa, TD-Holding and Agro-Alliance.

In 2019, it is estimated that 12.24 thousand tons of instant porridge were sold in Russia. A significant share of product consumption falls on people who, for one reason or another, are forced to eat in the field - for example, during travel, when working at any facilities, etc. In 2020, sales of such cereals decreased by 8.2% - to 11.24 thousand tons. Due to the COVID-19 pandemic, travel was difficult, and product demand began to decline.

But already in 2021, the volume of sales rose by 21.3%, reaching 13.64 thousand tons. This is due to the weakening of restrictions imposed at the peak of the spread of the coronavirus COVID-19. In 2022-2023, domestic tourism continued to develop, which contributed to a further increase in sales of instant porridge. Another factor in the growth of consumption was the increase in demand for products from the state and volunteer organizations due to the deterioration of the geopolitical situation. Porridge serves to provide food for residents of new regions and refugees. As a result, in 2023, the growth rate of sales was the highest in five years.^[3]

2022: Growth of buckwheat production by 14.4% to 493.6 thousand tons and rice by 2.6% to 529.1 thousand tons

In 2022, 529.1 thousand tons of rice were produced in Russia, which is 2.6% more than a year earlier. Buckwheat output increased even more - by 14.4%, to 493.6 thousand tons. This is evidenced by the data of Rosstat, which became known in January 2024. From the materials of the department it also follows that the production of pasta in Russia in 2022 reached 1.6 million tons, which is 6.8% more than a year ago.

The rise in prices for buckwheat to new historical highs occurred in March-April 2022 against the background of geopolitical events and associated increased demand. However, already in May of the same year, the strengthening of prices was replaced by a weakening. The population made reserves for several months and temporarily lost interest in purchases, experts say. In January 2023, buckwheat from producers cost almost 35% cheaper than in January 2022.

493.6 thousand tons of buckwheat were produced in Russia

The rice harvest in 2022 was lower than expected due to an accident at the Fedorovsky hydroelectric complex in the Krasnodar Territory (the main rice producing region, which accounts for 70% of the volume). The bridge and part of the locks of the Fedorovsky hydroelectric complex collapsed in April 2022, and this almost left 67,000 hectares of rice fields without water. The situation was stabilized by the construction of a temporary dam. As a result, the area of ​ ​ sowing decreased by 30,000 hectares, the sowing campaign passed with a lag. In total, rice in 2022 in Russia was sown 90,000 hectares instead of 119,000 planned. In addition, the agrarians of the Kuban suffered losses during cleaning due to rainy weather.

The sown areas under buckwheat were increased by 14.3% - to 1.3 million hectares. The cultivation of this crop in 2022 was carried out in 49 constituent entities of Russia. The leading regions, which account for about 75% of the gross collection, include the Altai Territory, Bashkortostan, Kursk, Voronezh and Oryol regions.^[4]

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