The Russian Market of Vegetable Oils - June 2012 (Russian Market Report)

The volume of supply on the  Russian market of vegetable oils in 2011 was about 3 million tons, which was lower with 10% than the levels from 2010. Due to an increase of the frequency of usage of vegetable oils in households, there was a growth of the market in 2007 and in 2009 – 2010 (both in physical and in monetary terms). Also, perspectives of growth in sales of vegetable oils in Russia are connected with an increase of consumption per capita in small cities (with population of less than 100, 000 people) in all Regions of the country. In addition, less developed markets as the Siberian and the Far Eastern ones are also growing.

The volume of imports of vegetable oils in Russia was about 770 thousand tons, which was about 25.8% of the total market volume. Interestingly, in 2011 were exported 764.6 thousand tons of vegetable oils which were almost equal to the level of imports. As a rule, on this market imports prevail over exports. However, in 2009 the situation was completely the opposite – the exports were more than the imports with 30%. In the future, an insignificant difference in the volumes of imports and exports (imports slightly prevailing) is forecasted.

The five leading countries, importing vegetable oil to the Russian market have not changed for the last few years. In 2011, Indonesia imported 46% of the total imports in physical terms, Malaysia – 18% and Ukraine – 15%. The shares of the Netherlands and Spain were 14% and 2%, respectively

The dynamics of production of vegetable oils in Russia was gradually decreasing: for the period between 2006 and 2008, the production went down with 10.5%. After that, there was an increase of 34% in 2009, followed by a further decrease in 2010 – 2011.

In the structure of production of vegetable oils, the highest volume belongs to sunflower, soybean and rapeseed oils. The absolute leader is the sunflower oil, taking more than 80%. It should be noted that in the last few years, its share decreased – if in 2005 – 2006 it was about 95%, in 2011, to the sunflower oil belonged 83.2%. The second most produced vegetable oil in Russia is the soybean oil, whose share in 2011 reached 10%. The third place is taken by the rapeseed oil with about 6%.

The largest oil-extracting factories belong to big manufacturing holdings: agricultural holding “South Rusi”, holding “Sun Products”, group of companies “Efko”, LLC “Bunde CIS”, the company “Aston”, the group of companies “NMZHK”, etc.

The largest consumption of vegetable oils in Russia among the Federal Districts happens in the Central, the South and the Volga Federal Districts. In the Central Federal District happens about 37% of the total consumption. Another 25% and 23% belong to the South and the Volga Federal District, respectively. The rest of the Federal Districts have much smaller shares. So, the Ural and the Siberian Districts have about 5% of the total each. The North Western has about 4% (although in 2008 – 2009 it had 11-13% of the deliveries of vegetable oils inside the Russian Federation). The Far East Federal District has the smallest share of consumption of vegetable oils – about 1%.

You can find more information in the FULL REPORT.