The Ministry of Agriculture wants to reduce the import of raw materials for dry infant formula from Europe and the USA

The Ministry of Agriculture proposes to reduce the volume of dry whey with a degree of demineralization of 90% (SDS-90%) allowed for import by 59.1% to 1500 tons. This follows from the draft order, which was posted on the portal of draft regulations on March 2, 2023. Such Whey is used for the preparation of powdered milk formulas and breast milk substitutes (BMS). It was delivered from Europe, the USA, from Ukraine, from Australia.

The import of whey for baby food from these countries was initially banned from 2014 as part of the counter-sanctions of the Russian Federation. From 2015 to 2020, 80-89% of raw materials were supplied from Belarus, the rest – from Argentina, Uruguay, Switzerland, according to Soyuzmolok. But in 2020, due to the coronavirus pandemic and the risks of shortages for the production of dry mixes and BMS, it was allowed to import 3,000 tons of whey from counter-sanctioned countries. The following year, a quota of 2000 tons was set, and in 2022 – 3661 tons.

The reduction in the supply of dry whey was agreed with Russian manufacturers of baby food and BGM, says Alexei Lysyakov, Chairman of the Board of Directors of Infaprim (Nutrilak brand). According to him, this is the volume of raw materials that companies need in 2023. He believes that already in 2024, the import of whey powder can be completely zeroed due to the development of domestic production.

In Russia (in addition to Infaprim) there are still two large companies that produce powdered milk formulas and BGM, these are Nestle (brand Nan) and Danone (Nutricia), says a source at one of the companies. But they do not import whey, but bases and ready-made mixtures that did not fall under either Russian sanctions or restrictions from Europe after the start of the NWO. So for them, the volume of permitted supply of whey is not important, and almost the entire volume of consumption falls on Infaprim. Nestle did not respond to a request, Danone redirected Vedomosti’s questions to Soyuzmoloko.

Alexei Gruzdev, CEO of Streda Consulting, calls SDS-90% a unique product, it does not depend on market fluctuations in prices. Its manufacturers and proven production technologies are also in Russia, but so far, due to a complex of reasons, it is more profitable to produce this product in Belarus, Gruzdev believes. He is confident that there will be no problems with the physical availability of such products. Despite the possibility of importing 3661 tons in 2022, in fact, no one used the quota and there was only one delivery of several tons, the expert explains. The decrease in imports to 1,500 tons does not pose significant risks for the industry, Artem Belov, general director of Soyuzmolok, is also sure. According to him, in 2022, the production of dry whey with various degrees of demineralization increased in Russia by 7% to 197,600 tons. Part of this volume is SDS-90%. At present, its production can be carried out by JSC Firm “Agrocomplex” named after. N. I. Tkacheva, Molvest Group of Companies, Gagarinkonservmoloko CJSC, Foodland Group of Companies and others, lists Belov.

Russian processors are developing this area in line with plans to increase the production of infant formula in Russia, a source in one of these companies knows. According to him, back in 2022, Nestle announced that it would invest 3.5 billion rubles. in the creation of full-cycle production at its enterprise in Vologda, and at the moment it has not abandoned plans. “Infaprim” for 4.2 billion rubles. will expand the output of its products in the Moscow region, on which in 2022 it entered into an agreement with the authorities of the region.

It plans to start producing SDS-90% and Ekoniva, says Roman Denisevich, project manager for a milk processing plant in the Novosibirsk region of this group. Potential capacity – up to 15,840 tons per year. This will fully meet the needs of the Russian market in the ingredient for dry infant formula, says Denisevich. In addition, in his opinion, there is a potential for export deliveries to China, the countries of Southeast Asia and the Middle East.

The representative of the Ministry of Agriculture said that the draft order was calculated based on the current need, adding that a significant part of the whey is supplied to the domestic market by Russian and Belarusian producers, and this “allows to reduce import volumes.”