Vegetable oil (Russian market)

2023

Growth in vegetable oil exports by a third to 6.5 million tons

In 2023, Russia supplied more than 6.5 million tons of vegetable oil abroad, which is a third more than a year ago. This is stated in a study by the information and analytical agency OleoScope and the Fat and Fat Union. Excerpts from the report were published on January 24, 2024.

The current result is the highest for the country, it was achieved due to record yields of oilseeds in 2022 and 2023, the preservation of duties on the export of oilseeds and growing demand for domestic finished products abroad, OleoScope Kirill Lozovoy analyst told Interfax.

In 2023, Russia delivered more than 6.5 million tons of vegetable oil abroad

According to analysts, the increase in the export of vegetable oil is associated with record yields of oilseeds in 2022-2023. Factors such as the preservation of duties on the export of oilseeds, the growth of demand for Russian oil abroad and the competitive cost of domestic products also played an important role.

It is specified that in 2023 the Russian Federation supplied 4.29 million tons of sunflower oil to foreign markets (+ 31%). It accounted for over 65% of exports of all types of oils. Soybean oil exports amounted to 668 thousand tons (+ 8%), rapeseed - 1.55 million tons (+ 58%).

According to the study, in 2023, the export of shots from Russia amounted to 3.88 million tons, which is 28% more than in 2022. Thus, the export of sunflower meal amounted to 2.34 million tons (12% more than in 2022). The main buyers were Turkey and Belarus - 683 thousand tons (399 thousand tons) and 621 thousand tons (436 thousand tons), respectively.

The volume of soybean meal directed to foreign markets reached 782 thousand tons (34% more). The leaders in the purchase of these products in 2023 were Belarus (198 thousand tons against 7 thousand tons in 2022) and Turkey (193 thousand tons against 106 thousand tons).^[1]

Growth in rapeseed oil exports by 1.7 times to 1.7 million tons

In 2023, Russia supplied 1.7 million tons of rapeseed oil abroad, which is 1.7 times more than the previous year. In money, the volume of exports of these products increased by 20%, according to the data of the Agroexport Center under the Ministry of Agriculture published in mid-January 2024.

According to Interfax, citing materials from the center, most of the export of Russian rapeseed oil still falls on China. The latter in 2023 purchased these products in the amount of 1.46 million tons, which is 2.2 times more than a year earlier. In monetary terms, the supply of rapeseed oil from the Russian Federation to the PRC soared by 53%.

Russia supplied 1.7 million tons of rapeseed oil abroad

The largest importers of Russian rapeseed oil previously included European countries, but their share in the total supply is decreasing. During 2023, the export of rapeseed oil to Latvia in physical terms decreased by 20%, to 76 thousand tons, and in value terms - by 47%. Shipments to Norway decreased by 4 times, to 16 thousand tons in kind and 6.7 times in cash. Also in the top 5 buyers at the end of 2023 included Turkey (9.2 thousand tons, -62%) and Belarus (8.2 thousand tons, + 12%).

As the executive director of the Oil and Oil Union of Russia Mikhail Maltsev noted, thanks to the record harvest and protective measures of the Ministry of Agriculture of Russia to load processing facilities in the 2022/23 season. A record volume of rapeseed oil was produced - about 1.5 million tons, which is 75% more than in the 2021/22 season. Almost the entire volume was exported, he stressed.

The press service of the Agroexport center also cites data according to which the Blago company exported 72.5 thousand tons of rapeseed oil in calendar year 2023, which is 13 thousand tons more than a year earlier. In addition to China, the group supplies products to Vietnam, Mongolia, Israel and Uzbekistan.^[2]

2022: Sunflower oil production growth by 8% to 2 million tonnes

In 2022, 2.01 million tons of packaged sunflower oil were produced in Russia, which is 8.8% more than a year earlier. The market rose after a 9 percent decline recorded in 2021. Such data are given in the BusinesStat study, published at the end of December 2023.

Experts pay attention to the growth in demand for sunflower oil - in the context of the crisis, the attention of buyers is shifting towards more budgetary product options, and sunflower oil among vegetable oils is one of the cheapest. Also, thanks to the record sunflower harvest and high export duties for the export of seeds, domestic enterprises managed to load as much as possible. The provision of enterprises with raw materials serves as a determining factor for the industry, analysts explain.

According to them, the wave of departure of foreign companies from the country practically did not affect the sunflower oil market. The only major player to leave the Russian market was the American Bunge, the owner of the Ideal, Oleina and Bunge Procusine sunflower oil brands. At the end of 2022, Bunge sold Russian assets to Exoil Group. The change of ownership did not affect the activities of enterprises, production continued under the same brands, added to BusinesStat.

Experts add that the sunflower oil market in Russia is highly consolidated. A significant share of production falls on several largest players, including Cargill, Aston, Rusagro, South of Russia, Efko, NMZHK, large shares belong to Nefis, Blago companies. The technology of processing sunflower and the production of sunflower oil is quite complex, and the efficiency of production in small companies is significantly less than in large enterprises. The high level of competition in the market creates additional difficulties for the entry of a new business into it, analysts noted.^[3]

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