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Chinese soy processor ups capacity to meet Russian demand

By Dominique Patton, 27-Jul-2006

Chinese soy processor Celestial Sun Moon Star Protein, listed in Singapore under the name of Celestial Nutrifoods, says it has extended its lead over competitors with a new production plant that gives it the largest capacity in the country.

The Daqing-based firm opened a new factory in June at its site in Heilongjiang province, which added a further 15,000 metric tonnes. The company now has more than 37,000 tonnes of soy protein capacity at its three plants.

The expansion will allow it to boost exports to markets like Russia and Ukraine where demand is strong.

"Our exports are going to really increase this year," said Frank Zhu from the firm's export department.

He told AP-Foodtechnology.com that it currently exports around 20,000 tonnes a year, and at least 40 full container loads are going to Russia and Ukraine each month.

Meat consumption in Russia is rising with higher disposable incomes. In 2000, Russians ate around 40kg of meat per person, and this has grown to about 50-55kg. The government wants average meat consumption to reach 70kg per person and is actively promoting domestic producers to help achieve this.

However Russia's cattle and sheep numbers continue to decline and supply of meat and meat products is currently well below demand. Using soy protein alongside meat in processed products like ham and burgers allows manufacturers to reduce the cost of importing meat and also benefit the texture and functionality.

Celestial is also applying for an IP certification of non-GMO source of its soy products to improve its offering to other European markets like Germany and the Netherlands. The company says it isolated soy protein and other products are more competitively priced against those produced by the global soy companies.

Zhu said he expects to have the certificate in September.