Sunflower oil production and the Russian economy

When it comes to the developed world economies, the question arises how they become so.

For example, the most economically developed countries in Europe are the founders of the EU Germany and France.

At the same time, the export of raw materials in Germany is 4% of the total export volume, and in France — 3%.

The largest growth in the economy is provided by the production and export of value-added goods.

The structure of exports of goods determines in which direction development is directed — towards growth or towards stagnation.

If we talk about the Russian economy, it is for the purpose of sustainable development that the Russian Government pays special attention to the export of the agro-industrial complex not by selling raw materials, but by increasing the processing capacity.

One of these priority areas is the processing of oilseeds and the sale of finished products.

At the end of 2019, the export of sunflower oil in Russia amounted to over 3 million tons worth $ 2.2 billion.

In total, 30% of the oil produced in the country was sold abroad.

According to the analytical platform Logistic OS vegetable oils 4,132 thousand tons were shipped.

The main buyers are:

In the first eight months of 2020, Russia exported 2,947 thousand tons of vegetable oils, which is 13% more than last year.

The share of sunflower oil in total shipments of vegetable oils increased by 4%.

The structure of product buyers has also changed:

01.01-31.08.2019

The main buyer was Iran with a share of 21.99%, followed by China with 16.26%, and Turkey with 14.82%.

China seized the lead in 2020:

Shipments to this country increased by 25%.

Sunflower oil is the fastest growing segment of Chinese imports.

In 2019, the country imported a total of 1,230 thousand tons of oil.

At the same time, shipments from Russia increased by 93%, and in value terms by 74% — $ 273 million. Russian suppliers provided 26% of the total supply of the finished product to the Celestial Empire.

The potential of our country in the supply of oil to China is very high: our manufacturers are able to close up to 50% of the volume of oil imported to China.

Gradually, Russian manufacturers are entering global electronic platforms.

It used to be that this could only be done by very large companies. But just recently, the Lebyazhsky Plant of Vegetable Oils created an online store on one of the largest marketplaces — Alibaba.com.

This step was made possible thanks to the assistance of the Kirov Export Support Center, which organized online meetings with suppliers for local entrepreneurs during the pandemic, and then helped to bring the plant to the world market.

The company is already negotiating with the first customers, and in late September-October it plans to start shipping products abroad using a digital platform.

Now the company plans to register its own brand in Russia and China.

(Analytics based on Ratings application)