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STARCH INDUSTRY OUTLOOK…
While the starch industry plays an important role in the sustainability of maize production, it continues to make a positive contribution to our foreign trade.
Processing ¼ of the 8.5-9 million tonnes of maize produced by approximately 300 thousand maize producers, the sector plays a major role in the stability of maize markets. The only non-alternative product of the sector is maize. In this respect, starch industrialists are the first address and assurance of maize farmers. Moreover, as we have seen throughout the previous year, our country, which exports approximately 1.8 million tonnes of maize at a price of 210 USD/tonne, produces at least 3.4 times added value when it exports it as starch and its derivatives. In this respect, the sector’s R&D investments and the production and export of advanced technological innovative products will contribute more to the national economy.
Starch is a renewable and biodegradable product. In the coming years, we will see more environmentally friendly, nature-protecting starch-based products instead of fossil fuels. Instead of plastics that do not dissolve in nature, such as plastic bags whose source is starch and can be dissolved in a short time.
When we look at 2024 foreign trade figures, starch sector;
As seen in the table, it contributed around 430 million dollars to our foreign trade from the export of products based on the processing of corn. In the meantime, while the sector has the capacity to produce and export more, the import of 241 million dollars is an issue that needs to be questioned. While glucose syrup is subject to quota in our country, on the other hand, glucose syrup is imported for nearly 17 million dollars.
The starch industry is highly dynamic, has a high R&D and innovation capability and can export value-added products. The fact that there are 4 starch companies among the ISO top 500 industrial enterprises is important in this respect.
The sector, which is involved in every stage of agricultural production and food from seed to the final consumer, derives its greatest strength from the maize produced by the farmers of this country.
The sector also contributes to the sustainability of the food industry, especially the confectionery industry, by acting as a tailor for the companies it supplies products to. It is possible to adjust the production process according to all kinds of demands of the food industry.
For sustainability in maize production, multifaceted activities such as farmer training programmes, efforts to combat aflatoxin, information on quality and yield increase, and contracted production are carried out.
Türkiye is an important player in the world starch market, but its market share is generally limited compared to major global producers. In the 2023-2024 production season, approximately 1.4 million tonnes of maize starch was produced by processing 25% of the 9 million tonnes of corn production. This corresponds to approximately 1.6% share in world corn starch production.
The global corn starch market is expected to be approximately 90 million tonnes by 2024 and is expected to reach 110.77 million tonnes with an annual growth rate of 2.7% between 2024 and 2032. In 2024, the value of the global starch market exceeded USD 60 billion and is expected to reach USD 85.79 billion with an annual growth rate of 5.7% between 2024 and 2030 (USDA).
Global maize starch trade is largely dominated by countries such as the USA, Germany, the Netherlands, Brazil, Serbia, Ukraine, Slovakia and Bulgaria.
US exports of maize starch and derivatives were approximately 46 million tonnes in 2023, valued at $13 billion. The main export markets of the USA include Mexico, Japan and China.
When the USA, the largest exporter, and our country are compared; the share of corn starch and its derivatives in our country is 1.10% with 506 thousand tonnes. The dollar equivalent share of exports is 3% with 400 million USD.
Is Türkiye’s maize production sufficient for the starch sector?
The starch sector processes around 2 million tonnes of mazie annually and the normal corn processing capacity exceeds 2.5 million tonnes. The sector uses our domestic and national corn. Currently, annual corn production of more than 8 million tonnes meets the needs of the starch sector.
Türkiye should produce maize. Because maize is an industrial plant. It is a very valuable crop not only for the starch industry but also for the feed industry and the poultry industry. As a matter of fact, in the current harvest season, import quotas exceeding 2 million tonnes were opened on different dates due to the decrease in cultivation and production and it is seen that imports continue depending on the increase in demand.
Necessary support should continue for its production in regions where there is no water constraint. Maize in our country is also of very high quality and there is no GMO risk.
How does starch production affect sugar beet production?
Starch production is not an alternative to sugar beet production. Starch derivatives are value-added products with more industrial properties. At the same time, they are an important source of raw materials for sectors such as the confectionery sector, which is the export locomotive of our country and make great contributions to their sustainability.
Starch from maize and therefore maize sugar, is produced for 12 months. Sugar beet is a seasonal production. In this respect, the starch sector should also be well utilised for the security of sugar demand.
Maize production areas are not an alternative for sugar beet. Because sugar beet is produced with quota. The factories of the starch sector are mainly in the Mediterranean region. Sugar beet is mainly produced in Central Anatolia and Eastern Anatolia.
Maize is also cultivated as a second crop for farmers.
Why are starch based sugar (NBŞ) on the agenda in Türkiye and how is this issue discussed in the world?
Unfortunately, this issue is very sensitive. Glucose has never been subject to quotas in EU countries. As of 2017, quotas on sugars have been abolished.
Likewise, there is no quota discussion in the USA. As in the case of chicken meat, there is misinformation in the society.
The basic approach of starch sector stakeholders is to follow what science says about sugar. In international scientific publications (including EFSA), there is no distinction between sugars.
In our country, there is an emphasis on “Sugar is sugar” in many academic statements.
As NİSAD, we are making great efforts to correct this misinformation. We make publications. We promise to academicians.
Recently, with the participation of Federation of Food and Drink Industry Associations of Türkiye (TGDF), we held a very good organisation titled “Information Pollution” within the scope of our civil initiative “Agriculture and Food Thinking Workshop”. We discussed how to combat information pollution in the sectors with experts from all disciplines. We have published the speeches in a book and are distributing them to everyone.
How do developments or problems in maize production affect the starch sector?
Maize is a must for our industry. Sustainability in production is important for us. For this reason, the contribution of our sector in maize production is also great. It regulates the market.
Controlling production in places where water is limited, using water with maximum saving, “zero waste” approach, “zero waste in water” understanding, “agriculture according to water” approach are issues that we, as the sector, support very much.
However, maize is an industrial crop. It is transformed into tens of value-added products. The maize produced by the farmers of our country is the highest quality maize in the world. In this respect, cultivation should be supported where there is no water constraint.
There may be problems such as aflatoxin risk and humidity. We, the industrialists, support training and extension activities on this subject. We support storage in modern licensed warehouses.
As the sector, we continue to work with all our strength to add value to our country on the road we set out with the vision of “building worlds from a maize grain”.
By İsmail Başaran,
Chair of Starch Manufacturers Association (NİSAD)
Source: www.tgdf.org.tr
