Igor Sviridenko
President of the Russian Union
of Flour Mills and Cereal Plants

With one of the world’s strongest grain bases and deep milling traditions, Russia’s flour industry is entering a new phase. From export expansion to quality upgrades and specialized products, the sector is redefining its role at home and abroad.

The flour and cereal milling industry plays a vital role in Russia’s economy and serves as the foundation for supplying the population with bread, flour, cereals, pasta, and components for a wide range of processed foods. This group of food products holds a leading position in providing healthy diets rich in carbohydrates, proteins, fiber, and essential micronutrients for the population.

The main types of cereal flour used in breadmaking are wheat and rye, with wheat flour accounting for the largest share of production. This is driven both by the specifics of cultivating these crops and by consumer preferences, as well as by the superior taste and nutritional qualities of wheat flour products. Milling products from other raw materials—such as corn, barley, oats, buckwheat, soybeans, peas, and others—are generally produced in limited volumes and are primarily used for the preparation of traditional or specialty products.

The industry benefits from Russia’s strong grain production base, which ensures a stable and reliable supply of raw materials. According to USDA data, Russia produced 82 million tonnes of wheat in 2024. A year earlier, in 2023, production reached 95 million tonnes, while in 2022 output totaled 104.2 million tonnes—accounting for 13.3% of global production. This positions Russia among the world’s top ten wheat producers, ranking third after China and the EU in the 2022/23 season (Figure 1), and fourth in 2023/24, following India as well. Wheat production ranges from 82 to 104.2 million tonnes, but domestic food consumption accounts for only 15 million tonnes (15–20% of total production.

Figure 1

According to official state statistics, Russia produced 9.93 million tonnes of flour in 2024. The distribution of flour by product category is shown in Table 1. The overwhelming majority—more than 92% of the total output—came from wheat flour, with milling wheat flour alone accounting for over 9.1 million tonnes. In contrast, flour from other cereals represented a much smaller share, totaling 685 Kt. Rye flour led this category with 489 Kt, while corn, rice, oat, buckwheat, soy, and pea flours were produced in comparatively limited volumes, mainly for traditional or specialty products.

Russian Flour Production 2024 — Table 1  

FLOUR CONSUMPTION PATTERNS AND MARKET TRENDS

Russia’s flour production exceeds domestic demand, achieving over 100% self-sufficiency. According to experts, the structure of flour consumption in Russia is as follows: more than half of the total output is used for the production of bread and bakery products (58%), while 12% goes into pasta production, 10% into flour-based confectionery, and around 2% is sold directly to consumers at retail. The remaining share is consumed by the broader food industry, particularly in the production of confectionery products (Figure 2).

Figure-2

For a long time, Russia experienced a decline in flour consumption. Between 2017 and 2021, flour production decreased by 5.7%, falling from 9.61 million tonnes to a historic low of 9.06 million tonnes. This decline was primarily driven by reduced bread consumption, although there was a slight increase in demand for pasta and confectionery products.

In recent years, however, flour production in Russia has begun to grow again. In 2022, output rose significantly by 0.6 million tonnes, reaching 9.66 million tonnes, and in 2023 production climbed further to 9.85 million tonnes. Although the downward trend in bread consumption persists, the increase in flour production has been fueled by a surge in exports.

RUSSIA’S FLOUR EXPORT BOOM

For many years, flour exports remained relatively modest—just 2–2.5% of total production (about 150,000–250,000 tonnes annually). But starting in 2022, the Russian Federation sharply increased its overseas flour sales. In that year, exports jumped to 0.881 million tonnes (a 280% increase). By 2023, exports had reached 1.13 million tonnes, and in 2024 they rose further to 1.17 million tonnes. Russia’s flour exports grew by 468% in just two years. The main importers of Russian flour include Afghanistan, Iraq, Turkey, China, Uzbekistan, Turkmenistan, Azerbaijan, Mongolia, and North Korea.

The Russian flour milling industry is planning further expansion of its exports. For 2025, the target has been set at 1.5 million tonnes of flour exports, with a goal of reaching 1.7 million tonnes in the coming years.

Russian millers have also achieved significant success in exporting wheat bran, with annual shipments totaling 1.8–2.0 million tonnes. Turkey accounts for up to 95% of this volume, serving as the primary importer.

According to experts, Russia’s flour export has significant untapped potential and could climb to 2–3 million tonnes annually, given sufficient investment in production and logistics infrastructure. At present, the largest market for flour is the Asia-Pacific region.

RYE FLOUR: TRADITION, DECLINE, AND REVIVAL

Special attention is also being given to the development of the rye flour segment. Rye is a crop deeply rooted in Russia’s national heritage, and rye bread has been recognized by UNESCO as part of the world’s cultural heritage. Russia is among the leading global producers of rye, with annual output reaching up to 2 million tonnes (Table 2).

Table 2 —Table 2. Global Rye Production by Country, 2023/24 Season (USDA)

Rye is widely regarded as a health food product. It contains antioxidants and dietary fibers that help the body feel full, support weight management, and improve digestion. Rye also provides choline, which helps reduce cholesterol levels in the blood. In addition, minerals such as potassium, calcium, and magnesium contribute to the healthy functioning of the cardiovascular system.

Rye is among the most resilient crops in terms of tolerance to adverse soil and climatic conditions. Producing one tonne of rye requires 20% less nitrogen fertilizer compared to wheat. Thanks to its powerful root system, rye absorbs nutrients from the soil more efficiently. It is also highly frost-resistant, enabling cultivation in colder regions. Moreover, rye has relatively low requirements for fertilizers and pesticides, making it an environmentally sustainable crop.

Rye is also highly drought-resistant, utilizing winter moisture through its deep and powerful root system. Compared to wheat, rye has a 20% lower transpiration coefficient and requires 25% less water to produce one tonne of grain.

Historically, Russia has been considered a “rye nation.” In earlier decades, about 25–27 million hectares were sown with winter rye—representing nearly 50% of global rye acreage. However, over the past 20–30 years, the area planted with rye has declined not only in Russia but worldwide, as wheat has taken its place. Today, rye cultivation in Russia covers less than one million hectares, even though the crop is better adapted to the country’s harsh climate than wheat.

The decline in interest in rye cultivation during the 20th century was driven mainly by economics: higher-yielding wheat varieties emerged, global demand for wheat grew, and farmers found wheat far more profitable. At the same time, the area suitable for wheat cultivation expanded significantly. On average, wheat yields surpass those of rye, while rye prices have remained consistently 20–30% lower.

Nevertheless, at the global level there is a growing recognition that rye is an important component in the development of sustainable food systems, supporting healthier lifestyles and more diverse diets. In this sense, the long-term potential of the crop is undeniable.

THE CONSOLIDATION OF RUSSIA’S FLOUR MILLING INDUSTRY

Russia’s flour milling industry is dominated by large-scale plants and milling complexes. By 1990, the USSR had completed its transition to industrial-scale production, with 385 large enterprises in operation. This was consistent with global practice at the time, with one mill serving approximately 500,000 people and a production capacity of up to 500 tonnes of flour per day. Geographically, mills were located close to consumer markets. Some milling complexes were fitted with domestically manufactured machinery, while from 1985 onward others were equipped with Bühler technology. 

Experts estimate that large and medium-sized enterprises account for more than 70% of Russia’s flour output, with small mills producing the rest. Yet overall utilization is barely above 50% of installed capacity. The country’s milling plants could process up to 26 million tonnes of grain annually—enough to produce 20 million tonnes of flour. In practice, however, actual output remains at just 10–12 million tonnes.

Currently, Russia’s flour milling sector is witnessing a consolidation of large enterprises into vertically integrated holdings. These groups combine strong raw material bases with substantial financial resources, enabling investment and ensuring production stability.

MAJOR PLAYERS IN RUSSIA’S FLOUR MILLING SECTOR

The largest player in the Russian market is Agropolis Saburovo (Tambov region). Its milling division includes the country’s largest facility of its kind—the Saburovsky Grain Processing Plant— with a daily grain processing capacity of 2,000 tonnes and storage capacity of 75,000 tonnes. Additional facilities include:

Mikhaylov facility (Mikhaylov, Ryazan region) – with a processing capacity of 400 tonnes per day and grain storage capacity of 100,000 tonnes.

Tula facility (Tula) – with a processing capacity of 560 tonnes per day and storage for 55,000 tonnes of grain.

Kirov Leningrad Grain Processing Plant (St. Petersburg) – with a processing capacity of 1,650 tonnes per day and grain storage capacity of 120,000 tonnes.

Another major player is APK Stoylenskaya Niva (Belgorod region), which operates both grain processing and bakery-confectionery divisions. Its production capacities include 435,000 tonnes of flour and 250,000 tonnes of compound feed, spread across three enterprises in the Kursk, Belgorod, and Volgograd regions. The company also manufactures bakery and confectionery products, with annual flour output of 254,000 tonnes.

OJSC Melkombinat No. 3 (Moscow) consists of several structural divisions, including: a bakery flour mill with a grain processing capacity of 500 tonnes per day; a pasta milling unit with a capacity of 600 tonnes per day; a finished goods department; and a bulk flour storage facility.

OJSC Makfa is Russia’s market leader in pasta and flour and also a major producer of cereals and grain flakes. Its product portfolio covers several key grocery segments: pasta, cereals and flakes, flour, and ready-to-use baking mixes. The company’s portfolio includes more than 150 products. The brand ranks among the Top 5 largest pasta producers in the world. Makfa cultivates its own grain and operates Europe’s largest flour milling complex, which comprises mills for both durum and bakery flour, grain and finished product elevators, and a cereal processing plant in the Altai region.

MACHINERY AND MODERNIZATION CHALLENGES

At present, the Russian milling industry is dominated by imported equipment. The Russian government has set a goal of reducing the sector’s dependence on foreign machinery from 89% in 2023 to 23% by 2030. However, there is currently no state program for the modernization and re-equipment of the flour and cereal milling industry. The last major modernization effort took place in the 1970s and 1980s, based on equipment licensed from Bühler.

Until recently, the industry was largely equipped with machinery from European manufacturers such as Bühler, Ocrim, and Braibanti Golfetto. Today, however, the market is seeing a growing presence of equipment supplied by Chinese and Turkish companies.

The domestic machinery sector still lags behind in terms of innovation, yet it is capable of producing a wide range of equipment that can fully equip a milling enterprise—from grain intake to finished product shipment. Experts believe that Russian-made equipment is quite reliable in terms of functionality. Another advantage is the ready availability of spare parts and the quicker response of domestic specialists when mills need support.

According to industry assessments, Russian milling equipment is considered competitive primarily due to its price-to-quality ratio. The value of equipment production for grain milling and processing has shown a steady upward trend, surpassing 4.5 billion rubles in 2024 (around USD 50 million).

RAISING QUALITY STANDARDS IN RUSSIAN FLOUR MILLING

Special attention in the Russian Federation is being given to improving the quality of flour production. In 2020, Russia introduced a new state standard (GOST) for baking wheat, with parameters that best meet the requirements of bread and bakery producers. From the total wheat supply, a category was identified that can be used to produce top-quality baking flour without the addition of improvers. This type of wheat is classified as ‘premium wheat’.

Separately, another category of higher-quality wheat has been identified—capable of improving weaker wheat by raising its characteristics to the ‘premium’ standard. This type of raw material is referred to as ‘strong wheat’.

The yield and quality of flour produced from durum wheat in Russia differ from European benchmarks. In European countries, the cultivation of durum wheat is supported at the state level: legislation prohibits the production of pasta from soft wheat, and farmers receive subsidies for growing durum varieties. Introducing similar measures in Russia—along with effective promotion of products made from durum wheat—would help stimulate consumer interest and attract further investment into the industry. In recent years, Russia has also taken steps in this direction. The state standard (GOST) for durum wheat flour was tightened, reducing the permissible content of soft wheat in the raw material threefold—from 15% to 5%, thereby aligning with European standards.

Efforts are now underway to further develop the milling industry in line with modern requirements. One of the global trends in the flour milling, bakery, and confectionery industries is the growing demand for flour with customized specifications. Such requests come from various segments of the food industry, which are increasingly striving to meet the diverse needs of different consumer groups. In this way, the milling industry plays an important role in creating a value-added chain, relieving bakers of the risks associated with ensuring product quality when sourcing flour on their own.

According to experts, flour with specific, tailored parameters offers strong potential in the production sector, particularly for manufacturers running automated production lines. For these producers, consistent and stable flour quality is critical, as it directly determines defect rates.

THE FUTURE OF SPECIALIZED FLOUR

Specialized flour is increasingly in demand—not just from small and medium bakeries, restaurants, and pizzerias, but also from major industrial manufacturers with strict flour quality specifications. Specialized flour today falls into several categories. Beyond flour for confectionery, pasta, baguettes, and other specific applications, new segments are emerging. These include flours aligned with healthy lifestyle trends—such as those for artisanal and organic breads, or breads made with original recipes and functional additives for improved nutrition. Another fast-growing segment is flour for the quick-service food industry, which must deliver stable dough rheology and reliable baking performance even after long-term cold storage.

According to market research, consumers now hold the upper hand over producers across today’s economy, including the milling sector. It is no longer sufficient to meet standard requirements—products must fully satisfy customer expectations to guarantee sustainable, repeat sales.

Producing specialized flour with the required rheological properties relies on carefully designed milling batches that blend wheats of different qualities, varieties, and regions. A single batch may include up to five varieties, mixed in precise proportions and processed under adjusted grinding regimes. With modern laboratory equipment enabling continuous monitoring, these sophisticated—and often costly—technological measures deliver consistent flour quality. Specialty flours, in turn, represent one of the most promising paths to improving profitability in flour milling.