Russia’s fat-and-oil industry may boost product exports by $5.5 billion against 2017, to $8.6 billion, the country’s Agriculture Ministry said following a meeting with industry representatives, UkrAgroConsult reported.
The meeting was attended by representatives of the companies Sodruzhestvo, Yug Rusi, Blago, Rusagro, Aston, Cargill, Efko, Bunge, Oryolmaslo, as well as the Nizhny Novgorod fat-and-oil plant and Kazan oil extraction plant. They confirmed the commitment to increase their share in the industry’s exports to some 80% by 2024, or to $6.9 billion out of $8.6 billion, the report said.
According to information presented at the meeting, the industry needs $5.5 billion in investment for implementing the shaped plans. Fat-and-oil exports will rise to $3.6 billion in 2018 and to $3.9 billion in 2019, the Ministry predicts. Remarkably, this concerns finished products, while raw material exports will fall. In particular, 2018 oilseed exports will total 1.2 MMT, just 726 KMT will be shipped abroad in 2019, and 2024 exports are projected at just 447 KMT.
According to the forecast, oilseed-crushing capacities will reach 33 MMT in 2024 versus 23.5 MMT in 2018.
Sunflower oil accounted for 41% of all oils and fats value sales in Russia last year. The fact sunflower oil is exported from Russia in large amounts means it is impacted by world prices. As Russians use sunflower oil a lot for cooking, price increases affect consumers’ spending power.
Yug Rusi APG with its Zolotaya Semechka brand led oils and fats sales in Russia in 2015, with the company being strong within vegetable and seed oil.