14 March 2019

EFKO Group announces starting of the investment program

14 March 2019, Russia – In advance of the spring sowing campaign EFKO Group announces starting of the investment monetary program for suppliers of raw materials for rape (in the Central Federal district and Altai Krai) and high-oleic sunflower (in the Central Federal district) cultivation. These are promising for Russian market oil crops because high-oleic (h/o) and rape oils are in a high demand all over the world.

According to analytics the world market of h/o oil is scarce: in 2019 the demand is about 2 mn tn, the supply – 1,6 mn tn. General cultivated areas of sunflower in the world amount to 26,6 mn ha including high-oleic – 1,4 mn ha (or 5%). Major h/o producing countries are France (345 ths ha), Ukrain (300), Argentina (160), Hungary (120), Russia (100) and others (408).

A share of h/o oil at the world market of sunflower and rape oils in 2019 will exceed 3,5%. In Russia the unit weight of h/o sunflower is about 2% in the general gross collection of the oil crop. The areas under h/o sunflower in the RF are estimated to 100 ths ha that allows to produce about 70 ths tn of h/o oil. A third of this volume is exported to China (68%) and Iran (20%). The cost of h/o sunflower at the time of procurement is higher than the usual one by about 10%. This tendency stimulates increasing of areas for high-oleic sunflower in 2019.

«A raising interest of European consumers towards high-oleic oil inspires developing of this sector in Russia. Our company since long ago has exported sunflower oil to European and Middle East’s countries, we have well-functioning outlet areas and we are interested in processing of high-oleic sunflower and producing of new products, so we are ready to invest future yield of tradable high-oleic sunflower and rape. Volume of investments will amount to about 100 ths tn of rape and 30 ths tn of high-oleic sunflower. – Mikhail Hohlov, director of the Oil raw materials Division of EFKO Group, comments. – Thanks to the growing of oilseeds productivity and changing of the structure of cultivated areas in 2018 there were 550 ths ha more of rape sowed than the year before. Experts suppose that in the future the cultivated areas will grow – the demand for rape products abroad is very high, especially for rape oil, both from the part of biodiesel industry and food segment».

The general cultivated area under rape in the world amounts to 35 mn ha, in Russia – 1 576 ths ha (winter – 190 ths ha, spring – 1 386 ths ha). Our country exports rape oil to the key consumers in Europe and Asia – it is over 470 ths tn for 2018. Russian rape oil is mainly exported to Norway (40%), China (18%), and the European Union (36%).

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