Vegoil. Trade. Barcelona

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APK-Inform

2154

After 5 years in Istanbul, this year we decided to move our annual vegetable oils conference to beautiful European city – Barcelona. Therefore, sixth international conference “Oilseeds&Oils-2014” took place in the capital of sunny Catalonia on October 6-7.

The conference gathered about 250 participants from 32 countries was devoted to EU consumption and imports of vegetable oils and prospects of Black Sea products on the European market. Spain (under support of Spanish Association of Vegoils Producers), Ukraine, France, Russia provided the highest number of participants. Import of vegetable oils to EU from Black Sea countries in 2014/15, quality aspects and logistics issues were the most discussed moments in frames of the conference. Lipidos Santiga (exclusive sponsor), Falcon Gobal Trade, Creative, Eesti Viljasalv (Estonia) became the sponsors of the event.

The event schedule included main conference part in hotel Majestic on October 7 and excursion to refinery plan (LipSa) and port terminal (Relisa). The participants of the conference were highly impressed by port terminal and pointed out effective organization of vegoils storage and related services.

The head of consulting agency LMC (UK) James Fry became the key speaker of the conference and opened the session part. His presentation covers bearish prospects for market development for the current season and influence of crude oil on vegetable oils prices. James Fry pointed that growth of non-food consumption of vegetable oils can slow down in 2014/15 MY firstly due to lower use for biofuel in USA and EU. At the same time, the sector of oilseed meals can face the growth of consumption due to price decline. J.Fry forecasts increase of uncrushed oilseed stocks in 2014/15 that will influence on global market development.

The representative of Falcon Global Trade Remko Rood was the second speaker of the first session. He paid high attention to Chinese market as one of the key factors for global vegoils market. Growing soybean processing in China will result in soybean oil surplus in the world in 2014/15 that will compete with palm oil. Therefore, the palm oil should look for alternative buyers that will have a bad impact on trade of other oils. “Taking to account all the above I want to mentioned that palm oil will have the biggest influence on prices”, - told R. Rood. Moreover he supposes that China will increase the imports of Ukrainian sunflower oil in 2014/15 MY.

The second session of the conference was devoted to the European market of vegetable oils. Europe will harvest record oilseed crop this season that will be the main factor determining market development. That was pointed by Christophe Cogny, expert of Tallage (Strategy Grains). He told that total production of three main crops (soybeans, sunflower and rapeseed) will reach 34 mln tonnes in 2014/15 MY (against 31 mln tonnes last season). The highest growth will be seen the rapeseed sector – to 23.8 mln tonnes (+2.7 mln tonnes to 2013/14 MY). That can explain decline of prices on European market. C.Cogny forecasts further decline of prices for vegetable oils in Europe due to increase of biodiesel imports in Europe. He sees vegoils production in EU in 2014/15 MY at the level of 15.6 mln tonnes (virtually unchanged from last season), the imports will decline a bit – to 8.33 (8.44) mln tonnes. Euro rate, high stocks of rapeseeds in EU and global market situation will also influence on further decline of vegoils prices.

Changes in vegetable oils labelling will be the important moment in development of European market of oils. Thus, starting from December 2014 producers should label the products pointing the exact type of vegetable oil used in production. Now the product is marked with general labelling “vegetable oil”. All these moments were revealed within the speech of the head of FAT & ASSOCIES Fabrice Turon. “Now palm oil is not include in the list of ingredients obligatory for labelling’, remind F.Turon.

The third session of the conference included several presentations devoted to the Black Sea market of vegetable oils. During last years, the share of Black Sea vegetable oils is making up 5-6% in total global production. In world trade Black Sea oils covers 9-10%. These figures were provided by Oleg Sukhanov, Bunge CIS. “Production of main vegetable oils (sunflower, soybeans, rapeseed) reached record 5.1 mln tonnes in Russia in 2013/14 MY while exports totaled 2.5 mln tonnes. The corresponding figures made up 4.9 mln tonnes and 2.5 mln tonnes in Ukraine”. As to the prospects for 2014/15 MY O.Sukhanov forecasts decline of vegetable oil production in Russia to 4.8 mln tonnes and exports to 2 mln tonnes. Ukraine will produce 4.4 mln tonnes of vegetable oils and export 4.2 mln tonnes.

“Moreover, Black Sea region is the leader in production and exports of sunflower oil with 70% share of the world market. Other 30% are covered by EU, Argentina and Turkey”, - added the expert. In long-term perspective the share of Black Sea sunflower oil in the global market can increase due to higher production of sunflower and development of processing industry.

“The share of Black Sea oil at the European market exceeds 90% and is growing up annually”, - summarized O.Sukhanov.

The role of Ukraine on the global market of sunflower oil is constantly growing. Thus, within last 7 years the share of Ukrainian sunflower oil on the world market increased significantly and reached about 54% in 2013/14 MY stated the head of trade department of Creative Group Yaroslav Gordienko. Ukraine exported 3.4 mln tonnes of sunflower oil in 2013/14 MY. 5 key Ukrainian sunflower processing companies (Kernel, Creative Group, Cargill etc) provided 30% of total world export of sunflower oil in 2013.

Sunflower crop in 2014 in Ukraine can reach 11 mln tonnes in 2014. “Processing capacities makes up 11.5 mln tonnes. Export of sunflower oil from Ukraine may reach 4.2 mln tonnes in 2014/15 MY”, - added Y.Gordienko.

Russia will decrease sunflower production in 2014/15 MY to 9.1 mln tonnes against 10.6 mln tonnes last season. Such forecast was made by Vladimir Zhylin, the analysts of Solnechnyie Producty (SolPro). “Sunflower processing in Russia can decline to 8.82 mln tonnes from 9.86 mln tonnes”,- added the expert. He also forecasts decline of sunflower stocks in Russia by 190 thsd tonnes – to 80 thsd tonnes. Export of Russian sunflower can go down to 80 thsd tonnes in 2014/15 MY against 130 thsd tonnes last season.

All covered topics were quite interesting for the participants and subsequently caused a lively discussion process.

We hope that the conference in Barcelona will turn to our new tradition as the city successfully combines business and entertainment and we will do our best to provide you with bright and rememberable event.

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