Russia: A multiple increases in the price of vegetable oil

Published Dec 8, 2021

Tridge summary

From June to October, retailers increased the selling price of sunflower oil while factory sell prices for processors decreased by 9.5%, leading to negative margins for oil extraction plants. Despite expectations, there has not been a significant price decline for vegetable oil in 2021/22 MY on both external and internal markets. The production of sunflower seeds and oil is estimated to be between 15-17 million tons and 7-7.5 million tons respectively, with 6.55-6.6 million tons expected to be exported. The director of the 'Association Ukroliyaprom' pondered why the price of oil in Ukraine is higher than in Europe, suggesting a possibility of price manipulation.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

From the beginning of June to October of this year, retailers saw an increase in selling prices for sunflower oil, while for processors, on the contrary, selling prices from factories decreased by 9.5%. Oil extraction plants are now operating with negative margins. Some even stopped. Stepan Kapshuk, General Director of Association Ukroliyaprom, spoke about this in his blog at Latifundist.com. However, according to the expert, the previously expected significant decline in prices for vegetable oil in 2021/22 MY, both on the external and internal markets, is also not observed. According to various estimates, in 2021/22 MY there will be produced from 15 to 17 million tons of sunflower seeds, as well as more than 7 million tons of sunflower oil. It is assumed that 6.55-6.6 million tons of oil will be exported. “Last year, sunflower cost 8 UAH / kg, and vegetable oil - 34 UAH / l. This season sunflower seeds cost 20 UAH / kg. With such a cost of raw materials, oil cannot cost UAH 26 / ...

Source: Oilworld