New stage of development of the company ViOil
The globally renowned company ViOil works in the agricultural sector of Ukraine since 1992, and during the reporting period the company already gained the status of one of the largest producers and exporters of high-quality sunflower oil. The current marketing year became particularly significant for the company, because in October 2013 ViOil launched a new plant in Vinnytsia, which will strengthen the positions of the company on both the foreign and domestic markets.
Vyacheslav Orlov, General Director of the industrial group ViOil, kindly agreed to inform how the company passed through 2012/13 MY, and the immediate prospects of 2013/14 MY.
- Vyacheslav Leonidovich, what were the most significant features of the season-2012/13 for the company ViOil, what tops were achieved?
Launching of the new plant in Vinnytsia became the main achievement of the company last year, which allowed almost doubling the processing capacities of sunflower seed.
- In your opinion, what were the main key points in development of the fat-and-oil industry in Ukraine during several recent years? What are typical features of the current 2013/14 MY for the oilseed market?
Rather rapid increasing of the processing capacities in Ukraine during recent years became the main key point. According to our data, only in the current season there were launched three new plants. As a result, the deficit of sunflower seed will become more palpable, oilseed processors will look towards alternative raw materials such as rapeseed, soybeans. The reporting situation will led to more actively struggle for raw materials markets, and move vulnerable producers from the market, which do not comply with the current market realities.
- Taking into account the high level of competition on the oilseed market, did your company face any difficulties in formation of the resource base?
The company is actively working with suppliers of the raw materials, and forms loyal relationships.
- In your opinion, how the price trend will develop on the market of sunflower seed and sunflower oil in 2013/14 MY? What factors will be fundamental in formation of the prices?
On the one hand, the deficit of raw materials for domestic oilseed processing will support high prices for sunflower seed in Ukraine, but on the other hand, rather good global harvest volumes of soybeans and rapeseed will "crush" the prices of sunflower oil. As a result, most likely the margin of oilseed processors will be relatively small, and many ineffective processors will face a dilemma: what is more profitable - to work with no profit (or with losses), or stop the plants at all.
- During several recent years there is increasingly affected the issue of possible cancellation of the export duties on sunflower seed. In your opinion, how it is possible, and how can it affect the domestic processing of the oilseed?
Cancellation of the duties will provide certainly negatively effect at the oil-processing industry in Ukraine, as the major volumes of sunflower seed will be exported for processing operations in European countries and the Middle East. At the same time, the presence of such duties positively effects development of the processing industry, which continues deeper and more efficiently processing the raw materials, remaining on the domestic market.
- The high harvest of oilseeds in the season-2013/14 will allow to Ukraine to increase the exports of sunflower oil and meal. Will the fact allow expanding the geography of export supplies?
To date Ukrainian sunflower oil and meal are supplied to many countries around the world. But it is possible that Ukraine will manage to expand the geography of supplies due to higher competitiveness of our commodities, compared with Argentinian sunflower oil or Brazilian soybean oil.
- Tell us about your plans of your company for the nearest future. What are your plans in terms of oilseed processing volumes, do you plan to increase the production capacities?
In the current year the company launched the first line of the new plant of ViOil in Vinnytsia (1200 tonnes of sunflower seed per day), next season there is planned to increase the capacities by another 600 tonnes, which will allow to the company to reach the general daily processing volumes of 3300 tonnes.
- Traditionally, at the end of the conversation we should ask what would you wish to the market participants in the season-2013/14?
Success in the business, realization of their plans and projects.
Interviewed byAnna Platonova
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