The new product of Rustark LLC (formerly known as the Gulkevichsky Starch Plant) was recognized as the best and helped to completely stop the import of foreign products.
On February 11, 2022, the largest international food and beverage exhibition in Russia and Eastern Europe ProdExpo 2022 ended. Manufacturers agreed to synchronize the launch of new products, trademarks and brands with ProdExpo.
Every year the exhibition presents up to 14% of new products. On the exhibition, tasting commissions work and competitions are held in different segments of the food industry. On February 10, 2022, the results and awards of the annual International Best Product Competition, which is held by the Rosselkhoznadzor and the Ministry of Agriculture of Russia as part of the ProdExpo exhibition, were announced in a solemn atmosphere. Rustark LLC (Starch Plant Gulkevichsky, Krasnodar Region) took part in the competition with MultyDex Brown products (complex food additive, brown maltodextrin) for the first time and, based on the results of a comprehensive expert assessment of quality, was deservedly recognized as the winner of the competition in the nomination «Achievements in import substitution».
First in Russia
A high award was given to the contribution of Rustark LLC to the country's food industry, as this production experience is truly unique. This is an exceptional case of complete import substitution on the territory of the Russian Federation. By the end of 2021, the import of brown maltodextrin to Russia from other countries was completely stopped. The production of this supplement, which is important for baking bread, the production of biscuits and confectionery, began at Gulkevichsky Starch Plant in 2020 The plant became the first and only producer of brown maltodextrin in Russia with MultyDex Brown brand.
Competition with global brands
Gulkevichsky Starch Plant proved that the plant's products are deservedly in demand among Russian and foreign consumers, the company's portfolio includes both internal and external contracts with the CIS countries and far abroad. The products have passed all the necessary certification and have proven quality, are safe and environmentally friendly. Previously, Russian entrepreneurs in the field of HoReCa and food production had to work with suppliers of maltodextrin from China and Europe. Many noted the complication of logistics links due to the pandemic, as well as rising prices due to currency fluctuations. Local production allows not only maintaining marginality and stable selling prices for businesses, but also a low price for the average consumer, as well as ensuring the workload of enterprises and maintaining jobs. The company managed to achieve 100% import substitution in the domestic market due to several aspects of work, such as domestic manufacturing of the product (convenient logistics, prompt deliveries (unlike foreign analogues); compliance with international quality and safety (the product has all the necessary confirmed certificates: Food Safety System Certificate FSSC 22000, ISO 22000:2018, SGS NON GMO Audit Certificate, correlation and price competitiveness.
Import substitution is a key development strategy for Russia. The positive experience of the Gulkevichsky starch plant is fully consistent with the Government's program for import substitution – the State Program No. 328 «Industrial Development and Competitiveness Increase», and a number of other legislative acts. The government has determined a strategic list of products with the highest import substitution priority in key sectors of the economy (the corresponding list was published on the official sites). The most dependent on imported raw materials and components were such industries as the processing industry. And agriculture, where the share of imports reaches 90% in the production of certain goods. The example of Rustark LLC demonstrates that it is possible to achieve the main goal of import substitution in the shortest possible period of time.
Expert opinion:
«What does «import substitution» really mean for the enterprise? This is a complex economic mechanism, where the input is the development of domestic production forces, and the output is the growth of the country's GDP. What does this mean for the average consumer? The growth of his wealth. The added value of products remains within the country, respectively, all those involved in its production receive additional income that does not go beyond the country to producers of imported products. New jobs are being created, the well-being of citizens and both large and small businesses is growing. Our enterprise – Rustark LLC (formerly the Gulkevichsky Starch Plant) launched the production of the MultyDex Brown complex food supplement at the beginning of 2020. The additive is used in the production of various brown food products, from confectionery to beverages. Previously, this type of ingredient was not produced in Russia, the country was almost completely dependent on supplies from China. Foreign counterparts from Europe were slightly higher at prices, but they also experienced difficulties with prompt delivery and fast order processing, which is unacceptable for food production, where there should be no «layup».
Our experts estimate the market volume of MultyDex Brown at 700 million rubles per year. Approximate annual market share growth will be up to 10% in direct proportion to the growth of the domestic food industry. Since the beginning of 2021, the supply of imported analogues has been completely stopped, the Rustark enterprise fully provides all areas of production with the MultyDex Brown supplement. The important thing is that we were able to achieve this only through honest economic market methods and high-quality products, without imposing bans, fees or sanctions. This is a striking example of economically successful import substitution, which benefits both the average consumer and the country's gross domestic product (GDP) as a whole».
Roman Kozyrev, General Director.