industrial biotechnology: new catalyst for russia agri development preliminary information november...
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INDUSTRIAL BIOTECHNOLOGY:NEW CATALYST FOR RUSSIA AGRI DEVELOPMENT
PRELIMINARY INFORMATIONNOVEMBER 2011
LOCATION
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The Modern Biotechnology Complex will be constructed in Chuvash Republic, the central part of Volga Federal Districts, Russian Federation.
Volga Federal District occupied 7.3% of the total territory of the Russian Federation while hosting 22.1% of the Russian population and producing 24.7% of the all agricultural products.
Relatively remote location of the Federal District from the main import entrance points (Leningrad region – 1500 km, Krasnodar region - 1200, China border – more than 3000 km) is an additional motivation factor for development of vertical integrated production cycle (grain products for human/animal consumption meet production food products).
WHEAT GRAIN AS THE ULTIMATE SOURCE FOR BIOTECH INDUSTRY
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(by weight) Amaranth Wheat Rice Sweetcorn Potato
Water 11% 11% 12% 76% 82%
Carbohydrates 65% 52% 79% 19% 16%
Protein 14% 13% 7% 3% 1.7%
Fat 7% 2.2% 1% 1% 0.1%
Fibers 7% 13% 1% 3% 2.4%
Country Wheat Production, mln.tn
China 112
India 79
USA 68
Russia 64
France 39
Canada 29
Germany 26
Ukraine 26
Australia 21
Pakistan 21
World Total 690
Source: UN Food & Agriculture, 2008
Source: Russian Ministry of Agriculture
Russian Wheat Production
Russia is one of the country with the high potential for the increasing the wheat output (current low land utilization ratio and product yield)
PRINCIPAL SCHEME OF PRODUCTION
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PRODUCTION FACILITY
(CHUVASH REPUBLIC)
Wheat grain(240,000 ton per annum)
Lysine Sulfate (50,000 ton per
annum)
Vital Gluten(17,000 ton per annum)
Crystal Glucose (30,000
ton per annum)
Feed Protein(61,000 ton per annum)
Starch (20,000 ton per
annum)
LYSINE GLOBAL MARKET
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Prroduction (tn) Country FY 2006 FY 2009
Ajinomoto Brasilia 34,000 138,000
France 60,000 74,400
Italy 26,000 -
Thailand 35,000 48,000
USA 42,000 61,200
ADM USA 174,000 238,000
Cheil Jedang Corporation Indonesia 122,000 211,200
BASF Korea 100,000 -
Global Bio-Chem China 100,000 122,400
Chuanhua Powder Co China 32,000 -
Anhui BBCA Biochemical China 18,000 21,600
Vedan Vietnam 18,000 -
Golden Corn China 16,000 33,600
Xiwang Sugar China 12,000 -
Ningxia Yiping Eppens China 12,000 100,800
SA Bioproducts South Africa 10,000 36,000
Daquan Lysine China 8,000 -
Maidan China 3,000 -
Gansu Ronghua China 3,000 -
Cathay Biotechnology Degussa China 80,000 -
TOTAL: 830,000 1,098,000
Lysine 98% (lysine hydrochloride)
Prroduction (tn) Country FY 2006 FY 2009
Global Bio-Chem China 108,000 156,000
Degussa/Evonik USA 75,000 92,000
Cheil Jedang Corporation China 30,000 42,000
Ningxia Yiping Eppens China - 18,000
Golden Corn China - 12,000
Agro & Ferm Denmark - 13,000
TOTAL: 213,000 333,400
Lysine 65% (lysine sulfate), counted per lysine 98%
• Lysine is the focus product for the planned production facilities.
• Russian local consumption of lysine exceed 50.000 ton per annum (import only) and the demand is growing 10-15% p.a. due to the intensification of meet production in Russia.
SOURCES OF COMPETITIVENESS
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Sources of competitiveness for the new biotech complex:
Low cost basic raw material (feed quality wheat grain),
Enhancement of traditional technology (proven at the pilot facility),
Production and sale of by-products (vital gluten, starch, feed protein, glucose) will seriously improve the economic efficiency of the production facilities,
Confortable logistic for raw materials and final products,
Controlled cost of utilities and labor.
Cost structure for organic acid in Europe
PRODUCTION FACIILITY LAYOUT
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1. Administrative building2. Parking3. Entrance gate 14. Entrance gate 25. Glucose storing facilities6. Main production building7. Intermediary storage8. Engineering complex9. Grain elevator10. Weighting chamber11. Grain acceptance facilities12. Warehouse13. Warehouse14. Warehouse15. Boiler room16. Electricity distribution substation17. Gas distribution substation18. Entrance gate 319. Lysine sulfate production building20. Tryptophan production building21. Cooler22. Cooler23. Laboratory building