Volga Baikal AGRO NEWS Update on the Prospects for the Development of the Sunflower Industry !!!
In the new season 2021, the sunflower harvest will increase.
“The volume of oil production in the first half of the year decreased due to a decrease in the harvest and an increase in the export of raw materials,” – said the ministry of agriculture. But in the new season, the sunflower harvest will increase, – expects the agency.
In the first half of the 2020/21 season, prices for sunflower on the world market increased significantly, which led to an increase in exports of this crop from Russia, according to the comments of the Ministry of Agriculture, received by RBC.
“Taking into account the decline in the harvest in 2020 due to adverse weather conditions, this led to a reduction in the production of finished products in the first half of 2021,” – the ministry said. In the new season, the sunflower harvest will increase, – the ministry expects. This, together with measures of customs and tariff regulation, will ensure the domestic market and maintain stable prices.
The sunflower harvest in Russia in 2021, together with measures to limit its exports, will be enough to ensure the domestic market and maintain a stable level of prices for sunflower oil, – the Ministry of Agriculture of the Russian Federation said in a statement.
According to the Ministry of Agriculture, last year self-sufficiency in the vegetable oil amounted to 195.9%, over the past month the price of this product has not changed and amounted to 94.2 rubles per liter. The Ministry believes that compensating producers for part of the costs will allow them to fulfill agreements on price stabilization and maintain profitability.
The agency added that it does not expect a decrease in investment activity in the industry and a decrease in production volumes in the future. “It should be noted that the industry retains its investment attractiveness, the implementation of projects for the construction of processing plants continues, in particular, in the Kursk and Lipetsk regions.
According to Rosstat, in the first half of this year, 1.1 million tons of refined sunflower oil and its fractions were produced in Russia. This is 17% less than in the same period of 2020. At the same time, the output of unrefined sunflower oil fell by 17% – to 2.7 million tons. In June, the production of unrefined oil fell by almost 36% year – on-year, and refined oil-by 15%.
Dmitry Rylko, general director of the Institute of Agricultural Market Conjuncture, told RBC that the shortage of raw materials from processors led to a decrease in production due to a decrease in the sunflower harvest in 2020. Sunflower stocks in farms have been at a record low level in the last few months, including due to active exports against the background of a small harvest, said Andrey Sizov, director of the Sovecon analytical center. According to the market participants and officials interviewed by RBC, we should not expect a shortage of oil.
Sunflower oil is included in the list of socially significant products approved by the state. In December 2020, the rise in price of some of them attracted the attention of President Vladimir Putin. To stabilize prices, the government took measures, including the introduction of export duties on oilseeds. In addition, manufacturers and retail chains have agreed to fix prices for socially important products.