Demand for Flour Under Crisis Conditions to Remain Stable

09 Dec 2009 • by Natalie Aster

Flour, as a foodstuff and a major raw material in bakery-making, is a component of minimum set of provisions for all social and economic groups of the population in Russia. The flour demand remained stable over the last 5 years and had a steady character within this year.

An average annual growth of flour market in kind makes 1.5% according to the research by experts of Information Agency CredInform North-West.

As a whole, an internal consumption of flour remains at a former level.

Russia is modestly presented at the world flour market: the flour domestic export reaches 250.000 tons/year approximately, which is less than 3%. The flour share in grain export makes only 2% while on the average this indicator is 8%.

However, the flour export in Russia may reach the record marks. With positive market conditions the annual growth of export volumes in kind should make not less than 10% according to basic scenario of development.

In order to improve the corn, high grades flour grinding mills should be produced, as well as wheat from steppe zones to local ones must be added in the majority of Russian regions. However, due to high costs for transportation only few grinding mills form necessary milling parties. As a result, a low quality flour appears in the market.

State corn inspectorate checks 30-35% of produced flour in Russia, hereupon it rejects from 25.000 to 40.000 tons of flour annually.