Commissioned in 2013/14 the oilseeds processing plant of Delta Wilmar CIS raised to a new level with the launching of higholeic sunflower oil production in the season 2014/15. This oil is usually defined as having a minimum 80% oleic (mono-unsaturated) acid. It provides very good stability without hydrogenation and is steadily increasing its market share in the food processing industries as a trans-fats free solution. This has created a good scope for premium for HO sun oil and HO sunseeds. This oil is widely used for frying, margarines production, etc.
At the same time, handling of high oleic oilseed requires well-coordinated effortsof both in-house and external agencies in order to minimize the risk of mixing of traditional sunflower with high premium high oleic variety.The salient features of handling of this premium product, the high oleic sunflower oil, was shared by the Director of oilseeds processing complex Delta Wilmar CIS Mr.Andrey Chaikovskiy and Director of Trade Mr. Yuri Shalamay .
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Mr. Shalamay, what are the key trends of high oleic sunflower seed cultivation in Ukraine nowadays?
According to our estimates, high oleic sunflower seed production in Ukraine in 2014/15 MY was around 130 thsd tonnes. In 2015/16 MYwe expect, with the presence of multinationals like ADM, Cargill, Delta Wilmar CIS LLC, as well as CJSC "Creativ", JSC "Melitopol OEP", LLC "Avis" and others, the demand for high oleic will grow exponentially. That is why we expect for increase of thefarmers interest in the cultivation of this oilseed and, accordingly, increase in harvest up to 140 thsd tonnes. Representatives of the seed material supplying companies have already reported about the increase in orders for the high oleic sunflower seed material for the planting campaign-2015/16. At the same time, they noted the lack of high oleic seeds material in Ukraine due to the fact that Romania, Bulgaria, Hungary and Spain expanding the plantings under this oilseed and most of the seed material went there.
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Mr. Chaikovskiy, what are the main points on which you pay attention during the formation of the supplier base for high oleic sunflower seeds?
Delta Wilmar company has put up a serious and concerted effort to the formation of the supplier base of high oleic sunflower seeds. Even before the harvesting of seeds 2014/15 was finished, our analyst researched fields of suppliers during the annual crop tour. These measures allowed us to be sure that we will be provided with the necessary volume of raw material for processing.
Before making decision in favor of high oleic sunflower seed purchases from a particular supplier, our inspector or independent surveyor took the samples of a total weight not less than 2 kg for laboratory research at the oilseeds processing complex Delta Wilmar CIS. Apart from the standard list of tests for moisture, oil impurities and oil content, we also conducted research on iodine number and content of oleic acid in our laboratory for tropical oils transshipment. Determination of oleic acid was done by gas chromatography. This method is arbitral in case of disputes.
According to the approved procedure, we acceptedthose sunflower seeds which showed at least 80% of oleic acid. The optimal content of oleic acid for us was at the level of 82%. The maximum content of oleic acid in high oleic sunflower seedsof 2014/15 crop, which wereceived at our plant during the period from September 2014 to January 2015, was noted at 86-87%.
- Where do you store the high oleic sunflower seeds?
We have allocated and stored in dedicated silos those high oleic seeds which passed the minimum quality standards. We have engaged 9 Elevator companies during the procurement of high oleic seeds and these companies are situated in Odessa, Nikolaev, Kirovograd and Poltava regions. Initially the Elevators were reluctant to work with high oleic sunflower seeds because of the need to store it separately without any contamination from commercial sunflower seeds. The Elevators were not equipped with required laboratory facilities with accreditation for the determination of the oleic acid and Iodine value. Delta Wilmar has not taken chance with quality and so appointed the services of independent surveyors to overlook the seed quality receipts. Our company also positioned its Logistics staff to elevators along with Independent surveyors and ensured strict controls before the seeds were loaded into trucks for transshipment to factory. Upon receipt of the trucks at factory, Delta Wilmar appointed independent surveyor for rechecking the quality and then only the seeds were directed for unloading into dedicated silos.
- What are the main features of high oleic sunflower seeds receiving and storage at Delta Wilmar CIS factory?
In the first stage, we have fixed a scheduled date for the receipt of high oleic seeds and stopped the receiving classic seeds. We have planned our logistics from elevators and receipt at factory and transshipped seeds continuously for 15 days. This has put some pressure for the receipt of classic seeds. Then in December, we have been able to take in parallel both traditional and high oleic seeds. The only thing - deliveries were scheduled for different days. Much work has been done by our laboratory that conducted the analysis. Sunflower seeds, satisfying the requirements of contracts, were sent for cleaning and storage. We reserved 5 silos of a total capacity 12.5 thsd tonnes for high oleic sunflower seeds storage. These silos have been previously reviewed by «Intertek». In particular, an independent surveyor recorded the cleanness of silos, conveyors and bucket elevators, as well as their readiness for loading high oleic sunflower seeds, sealed silos, prepared acts of sealing/unsealing and issued a certificate of silos purity.
- Are there any negative moments in high oleic sunflower seeds processing?
Before the start of high oleic sunflower seeds processing, the independent surveyor analyzed our processing facilities and oil storage tanks. Furthermore, each hour during processing we took the oil for analyzing it for the oleic acid content. Important feature of higholeic sunflower oil is its tendency to freeze at subzero temperature. We made processing during December 17, 2014 to January 7, 2015. The ambient temperature was -10 to -17⁰C and increased attention was required from the side of all units of Delta Wilmar CIS oilseeds processing complex. In total we processed 18 thsd tonnes of high oleic sunflower seeds and produced 7.7 thsd tonnes of high-oleic sunflower oil. One of the negative side of high oleic sunflower seed processing was the necessity to stop the plant for approximately 30 hours in order clean equipment from commercial sunflower residues and fixing performance figures before receiving of high oleic material.
- What features of high oleic sunflower oil storage would you like to highlight?
Due to the freezing nature of the product at subzero temperatures, it is important that the plant runs with minimum downtime. The pipelines transporting oil from plant to storage terminal need to be kept under heating mode. Storage tanks need to be cleaned, prewashed and to be kept under inert gas purging. Hourly checking for minimum quality parameters for oil were done and accordingly HO oil was stored in terminal dedicated tanks. Once a storage tank was full, samples were drawn from different levels for the total reassurance of quality.
Pipelines and storage vessels were kept under continuous inert gas purging to avoid freezing and contamination. Along with the highly professional Delta Wilmar staff, Independent surveyor also in parallel monitored the entire operation starting from elevators to ship loading. All these measures assured us for the shipment of right quality oil to our customers.
- Mr. Shalamay, are there any prospects for increase of high oleic sunflower seed crushing by Delta Wilmar CIS in the season-2015/16?
Our company is always quickly responding to the changes in demand from the side of importers of Ukrainian vegoils. For the period September 2014-March 31 we exported 7.7 thsd tonnes of high oleic sunflower seed oil which was produced at Delta Wilmar CIS plant. The main direction of sales was China, namely Yihai Kerry (Wilmar Trading China) which is a part of Wilmar group of companies and is a leading agribusiness and food company with over 20 years of local operating history in China. They provide bottling of sunflower oil in China and sell it under Arawana brand.
In the season-2015/16, we plan to double the export of high-oleic sunflower oil of our production to China. The upward trend in high oleic sunflower seed production in Ukraine should contribute to the implementation of our plans. Ukrainian high oleic sunflower seed oil has all possibilities to compete with products from Europe!
You can discuss the possibility of cooperation with Delta Wilmar CIS LLC during the third international conference "Ukrainian soybean market: prospects for development in 2015-2020" on April 27, 2015, in Kiev, Ukraine.
