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Piloting domestic production of protein components

Description

Piloting domestic production of protein components — used as base for dried dairy formula for newborns and babies under 6 months of age. Breastfeeding has been declining in popularity in Russia. Currently, the percentage of breastfed babies is 20–40%. This means that more than a million babies under 6 months of age have a daily need for formula. Dried milk mixtures, or breast milk substitutes (the substitutes) are primarily based on demineralized milk whey (DMW 90). Russia does not produce any DMW 90 at the moment. 
The project proposes to set up in Russia a domestic production of components for manufacturing a recombinant of the DMW 90 mixture, with enhanced properties and based on A2 cow milk. The novelty of the manufacturing process is as follows: 1. The first stage ensures enrichment of input material with whey protein. It is proposed to achieve this by blending cow milk with Russian-made colostrum instead of cheese whey (used in the standard process). Bovine colostrum possesses unique properties and it is not used in production in Russia today. 2. For elimination of pathogenic bacteria, it is proposed to do on-flow treatment of the material flow with pulsed nanosecond exposures to ion-beam irradiation (i. e., cold pasteurization), preceded with bactofuge pre-cleaning of the enriched milk. This is intended instead of traditional pasteurization, thus enabling appropriate anti-bacterial treatment while preserving the beneficial qualities of whey proteins. 3. Ultra-filtration technology is proposed for removal of the dead bacteria. The use of ultrafiltration (i. e., molecular separation of milk) and the use of diafiltration and reverse osmosis units should also enable maximum possible extraction of active whey protein from the milk—colostrum mixture. 4. The final process stage provides separation of protein components and ensures the desired composition of mixture. The resulting mixture is then dried. The goal of the project is to create a production facility at the existing dairy plant owned by Pobeda-1 Group of Companies to launch production of protein components to be used in infant nutrition, sport and functional nutrition; to build out the raw material supply structure for the project by newly creating 12 modern dairy farms, total headcount 14,400 animals. The integrated project aims to utilize active whey proteins for production of adapted premium-quality liquid and ready-to-consume infant formulas as well as breast milk substitutes. In addition to the aforementioned products, it is planned to produce protein-enriched dairy products (butter for baby food — GOST 33633-2015, quark for baby food — GOST 32927-2014, cheese for baby food — GOST 33631-2015). Implementation of the integrated project also provides for setting up experimental production to develop and manufacture prototypes of functional and therapeutic nutrition based on bovine immunoglobulins and intended for patients with various viral and bacterial diseases. Implementation of the integrated project will deliver: – capabilities to supply domestic companies with Russian-made components for production of formulas for newborns and babies under 6 months of age; – opportunities to reduce the market price for adapted dry dairy formulas by more than 30% through elimination of import duties, VAT and transportation costs; – foodstuffs of better quality, increased temperature stability and protein activity; – better safety of foodstuffs (monitoring of production inputs); – domestic supply base for further development of enteral nutrition, sport and functional nutrition.

Publication date: 23.04.2020 Last updated: 05.10.2020

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Piloting domestic production of protein components

Industry

Сельское, лесное хозяйство, охота, рыболовство

Project type

Launch of new products within existing production, Expansion of existing production

Project budget

12,9 bln

detailed project information

Description

About the project

Piloting domestic production of protein components — used as base for dried dairy formula for newborns and babies under 6 months of age.

Breastfeeding has been declining in popularity in Russia. Currently, the percentage of breastfed babies is 20–40%. This means that more than a million babies under 6 months of age have a daily need for formula.

Dried milk mixtures, or breast milk substitutes (the substitutes) are primarily based on demineralized milk whey (DMW 90). Russia does not produce any DMW 90 at the moment. 
The project proposes to set up in Russia a domestic production of components for manufacturing a recombinant of the DMW 90 mixture, with enhanced properties and based on A2 cow milk.

The novelty of the manufacturing process is as follows:
1. The first stage ensures enrichment of input material with whey protein. It is proposed to achieve this by blending cow milk with Russian-made colostrum instead of cheese whey (used in the standard process). Bovine colostrum possesses unique properties and it is not used in production in Russia today.
2. For elimination of pathogenic bacteria, it is proposed to do on-flow treatment of the material flow with pulsed nanosecond exposures to ion-beam irradiation (i. e., cold pasteurization), preceded with bactofuge pre-cleaning of the enriched milk. This is intended instead of traditional pasteurization, thus enabling appropriate anti-bacterial treatment while preserving the beneficial qualities of whey proteins.
3. Ultra-filtration technology is proposed for removal of the dead bacteria. The use of ultrafiltration (i. e., molecular separation of milk) and the use of diafiltration and reverse osmosis units should also enable maximum possible extraction of active whey protein from the milk—colostrum mixture.
4. The final process stage provides separation of protein components and ensures the desired composition of mixture. The resulting mixture is then dried.

The goal of the project is to create a production facility at the existing dairy plant owned by Pobeda-1 Group of Companies to launch production of protein components to be used in infant nutrition, sport and functional nutrition; to build out the raw material supply structure for the project by newly creating 12 modern dairy farms, total headcount 14,400 animals.

The integrated project aims to utilize active whey proteins for production of adapted premium-quality liquid and ready-to-consume infant formulas as well as breast milk substitutes. In addition to the aforementioned products, it is planned to produce protein-enriched dairy products (butter for baby food — GOST 33633-2015, quark for baby food — GOST 32927-2014, cheese for baby food — GOST 33631-2015).

Implementation of the integrated project also provides for setting up experimental production to develop and manufacture prototypes of functional and therapeutic nutrition based on bovine immunoglobulins and intended for patients with various viral and bacterial diseases.

Implementation of the integrated project will deliver:
– capabilities to supply domestic companies with Russian-made components for production of formulas for newborns and babies under 6 months of age;
– opportunities to reduce the market price for adapted dry dairy formulas by more than 30% through elimination of import duties, VAT and transportation costs;
– foodstuffs of better quality, increased temperature stability and protein activity;
– better safety of foodstuffs (monitoring of production inputs);
– domestic supply base for further development of enteral nutrition, sport and functional nutrition.

Description of project services or products

Products: protein components (high-quality whey protein isolate), lactose (high purity), casein protein concentrate, whey-enriched dairy products (quark, sour cream, yogurts, etc.)

Contacts of the regional development institute

Ministry of Investment and Development of the Sverdlovsk region, Mikheicheva Ekaterina Valerevna, 8(343) 312-00-31 доб. 426, e.miheicheva@egov66.ru

Project company: ГК «Победа-1»

Investment indicators

Project budget

12,9 bln ₽

IRR

19%

NPV

5,6 bln ₽

PBP

C_MONTHS

Equity share in the project budget

20%

Government support

The project is included in the List of Strategic Investment Projects for Social and Economic Development of the Sverdlovsk Region in 2020.

As provided for by Government Resolution No. 162, dated February 19, 2019, the project has been approved by the Council for Priority Avenues of Scientific and Technological Development of the Russian Federation and signed off by the Coordination Council for Priority Avenues of Scientific and Technological Development at the Presidential Council for Science and Education.

The project received an expert determination by FSBNI RISCEC NII (Scientific Research Institute — Federal Research Centre for Projects Evaluation and Consulting Services) certifying its compliance with the CSTSPIC criteria. The project was then reviewed and approved by the Russian Ministry of Agriculture, Ministry of Science and Higher Education, and is pending review by the Government of Russia.

Investments in the project

10,4 bln ₽

total investment volume

Regional support measures

General support measures

Налоговые льготы для резидентов территорий опережающего социально-экономического развития (ТОСЭР) г. Новоуральск, г. Лесной и г.Краснотуринск

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Гранты на развитие материально-технической базы

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Гранты «Агростартап»

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Грант Фонда содействия инновациям по программе «Коммерциализация»

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Субсидии на возмещение части прямых понесенных затрат на создание и (или) модернизацию объектов агропромышленного комплекса (создание и (или) модернизация хранилищ)

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Субсидии на возмещение части затрат сельскохозяйственных потребительских кооперативов в Свердловской области

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Субсидии на реализацию мероприятий в сфере обращения с твердыми коммунальными отходами

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Займы Свердловского венчурного фонда

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Заемное финансирование проектов, реализуемых по приоритетным направлениям российской промышленности (программа "Проекты развития")

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Заемное финансирование проектов, реализуемых по приоритетным направлениям российской промышленности (программа "Комплектующие изделия")

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Поручительство по договорам банковского кредитования Свердловского областного фонда поддержки предпринимательства

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Налоговые льготы для резидентов особой экономической зоны «Титановая долина»

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Налоговые льготы для инвестора при реализации приоритетных инвестиционных проектов (ПИП) на территории Свердловской области

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Инвестиционный налоговый кредит на территории Свердловской области

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Предоставление земельного участка инвестору без процедуры проведения торгов

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