High-Tech Flour Milling Complex

Market Overview

In 2021, the total wheat harvest in Russia amounted to 76.1 million tons, which is 9.8 million tons lower than in 2020. Despite the continuous increase in wheat yields from 2018 to 2020, there was a decline in 2021 due to lower wheat productivity.

In 2021, 8.15 million tons of wheat and wheat-rye flour were produced, which is 2.6% less than in 2020. However, in the first half of 2022, 4.24 million tons were produced, indicating a potential increase by the end of the year compared to 2021.

• 32.7% of wheat and wheat-rye flour is produced in the Central Federal District (CFD).
• 21.2% in the Siberian Federal District.
• 17.4% in the Volga Federal District.

Producer prices for wheat flour in the first half of 2022 averaged 23.9 RUB/kg. The increase in 2021 over 2020 was 10.7%, indicating a positive trend. Meanwhile, top-grade wheat flour reached 24.6 RUB/kg, first-grade 22.4 RUB/kg, and second-grade 19 RUB/kg. Consumer prices averaged 52 RUB/kg, with the highest in the Far Eastern District (61 RUB/kg) and the lowest in the Siberian District (46.6 RUB/kg).

Flour production revenue in 2021 reached 151.6 billion RUB (excluding taxes). Revenue has increased every year since 2018. In 2021, it was 10.8% higher than in 2020 and 53.3% higher than in 2018. The Central Federal District led with 64.5 billion RUB, or 43% of total revenue.