The forecast for this year's harvest of Russian sunflower should be enough to meet domestic needs and realize the export potential of oil and meal, but only subject to restrictions on the export of raw materials. If the export of raw materials maintains the pace of the previous year, then the processing industry of the Russian Federation will soon face a shortage of raw materials. This opinion was expressed by Dmitry Kozlov, head of the pricing department of the Blago Group.
Dmitry Kozlov added that, according to the Blago Group, the process of forming a relevant price for sunflower processing products is currently underway, which will help to maintain a fair price for raw materials. In his opinion, the dynamics of growth in world consumption of sunflower oil (by 15% from 2016 to 2020) and its excellent consumer characteristics give every reason to say that sunflower oil should have a premium over rapeseed and soybeans.
"The concern of agricultural producers that processors will dictate their prices for raw materials is not justified. According to forecasts of the Ministry of Agriculture, by 2024 the sunflower harvest in Russia will reach 17.4 million tons, while the capacity of domestic oil processing is already about 20 million tons and they only increase every year. Therefore, the competition for Russian sunflower will continue," concluded Dmitry Kozlov.
Source: soyanews.info.
