The FINANCIAL — Cooperation in the fat-and-oil industry between Ukraine and Russia in recent years continue strengthening, declared Svetlana Sinkovskaya, Head of the Marketing department of APK-Inform Agency, at the international conference “Oilseeds & Oils – 2011" in Istanbul on September 23.
As the example of the last operation, the expert called the purchase of the company Russian Oil, the Russian producer of vegetable oils, by the Ukrainian company Kernel for 60 mln USD. The transaction may allow to the Ukrainian company to strengthen its position on the Russian market, taking into account the good forecast of sunflower production in 2011.
S.Sinkovskaya also noted the purchase of the Ukrainian company WJ by the Russian company Sodrugestvo. The company from the Russian Federation plans to build the processing plant in Ukraine.
The expert believes that the trend in the industry will continue growing. In the following 2-3 years, the market is to wait for new mergers and acquisitions, or strengthening of partnerships between companies of both countries.
Talking about the exports of Ukrainian sunflower oil, the expert noted that during recent four seasons there is a steady increase in exports of sunflower oil. During 11 months of the season, Ukraine already exported 2.7 mln tonnes against 2.6 mln tonnes last season.
During three recent seasons India is the main importer of sunflower oil from Ukraine (644 thsd tonnes in 2010/11 MY). Besides, Turkey and Egypt purchased 305 thsd tonnes and 207 thsd tonnes of sunflower oil, respectively.
The expert noted that separation of the markets of sunflower oil between Ukraine and Russia, which is characteristic of the last season (Ukraine operated on distant foreign markets, and Russia – the CIS markets) are unlikely to survive because the government policy can not allow to Ukraine to become the world leader.
According to S.Sinkovskaya in August 2011, analysts of APK-Inform Agency increased the forecast of sunflower seed production in Ukraine to the level of 8.6 mln tonnes, up almost 1 mln tonnes compared to the official forecast.
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