The FINANCIAL — According to the President of CJSC "Creative Group" Yuriy Davidov, the administrative interference to the local market of sun oil may cause failure of the sowing campaign in 2008.
According to him, non-market approach to the regulation of the local prices for sun oil as well as introduction of the quotation have already reduced the export-economic activity rates and decreased the subsidized volumes to the agrarians from sun oil producers.
At that, he underlined that the administrative interference to the local market leads to the artificial reduction of the prices for sun oil that automatically results in the reduction of the production profitability. The companies, that are to work on the market during the next season, would try to compensate their losses by the reduction in the purchasing prices for raw material. In turn, this may lead to the reorientation of the majority of agrarians to the production of alternative oils (rapeseeds, soybeans) and grain crops. This, in turn, would create the problem of the deficit of raw material for sun oil producers.
According to the President of "Creative Group", the solution to this situation is in creating of own raw-material base. However, the crushers almost have no time for development of own raw materials base, because the spring sowing campaign has already begun. So, only those sun oil producers may survive that earlier considered development of the agrarian direction of their activity.
Reference: CJSC "Creative" is engaged in production of oil-and-fat products on the base of sun oil and tropic oils.
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