Russia: Oil and Fat Union warns oilseed producers to ship their crops for processing

Oil and fat enterprises in Russia urge oilseed producers to rhythmically ship their crops for processing so as not to increase carryover stocks of raw materials, which put pressure on prices, said Mikhail Maltsev, executive director of the Fat and Oil Union of Russia. “We are waiting for a more balanced policy on the part of oilseed producers; for our part, we will try to process everything,” he said, noting that 1.5-2 million tons of new processing capacity are introduced annually. According to Rosstat, at the end of November 2023, sunflower reserves in agricultural organizations were 3.7% higher than a year ago and amounted to 7.2 million tons versus 6.9 million tons. Maltsev notes that the negative factor of high carryover stocks of oilseeds persists, starting from season 2020/2021. He attributes this to farmers’ policy of holding back sales in anticipation of better prices. According to him, at the beginning of the 2021/2022 season (February-March), the utilization of ...