On October 14-15, APK-Inform Agency provided the large-scale international event focusing on the market of sunflower oil - International Sunflower Oil Symposium. China, namely Shanghai, one of the growing markets of consumption of the reporting commodity, became the venue for the new conference. The event gathered together nearly 100 delegates from the Chinese market of sunflower oil, and nearly 120 representatives of trading companies from the Black Sea countries and Europe. Also, the unique event became the key point in foundation of the International Sunflower Oil Association (ISOA).
The event was held under support of the Chinese Cereals and Oils Association, Association Ukroliyaprom and the Ukrainian Research Institute of Oils and Fats at the National Academy of Agrarian Sciences of Ukraine. The company Wilmar became the General sponsor of the event. Such companies as AGA Partners (Legal partner), SHANGHAI LIANGYOU LOGISTICS GROUP CO (China), Cotecna, OLIR, Intertek, Etalon SA, Orexim, Allseeds and TransOcean, became the sponsors of the conference.
14 October was the main working day of the event. Speakers from 8 countries formed the conference session agenda. Presentation of the expert from the well-known international consulting agency LMC, Lan Chen was the first report within frames of International Sunflower Oil Symposium. She reported on the current situation on the world market of sunflower oil, and the role of China and India in its further development. The expert stressed that the world exports of sunflower oil show the upward development trend, and during 10 recent years the index has increased in more than 2.5 times.
According to the expert, in 2014 the world exports of sunflower oil broke a new record - 8.5 mln tonnes. In 2015 and 2016, shipment volumes of the commodity will slightly decline, but still remain rather high - nearly 8 mln tonnes and 7.8 mln tonnes, respectively.
L.Chen noted that India, China and the EU are the key directions for sunflower oil delivery. The markets of China and India have rather great potential for imports of the reporting commodities, but they are responsive to any price changes on the world market of vegetable oils, and the demand for sunflower oil in these countries is largely determined by the premium rates of the reporting veg oil over other types of commodities. As for the EU, sunflower oil popularity on the market develops due to the fact that the product does not contain GMOs. In addition, the deficient supply of rapeseed oil on the European market increases the demand level for imported sunflower oil.
The General Director of the Association Ukroliyaprom, Stepan Kapshuk spoke about the success of Ukrainian sunflower oil on the world market, and the specific features of the fat-and-oil industry development in Ukraine. According to him, in 2014/15 MY Ukraine exported 3.364 mln tonnes of sunflower meal. The expert informed that the European Union (62.3% of the supplied volumes) remained the main importer of the commodity from Ukraine. Also, Belarus (15.8%) and Turkey (8.3%) came to the TOP-3 of export destinations of Ukrainian sunflower meal. It is expected that in the current season, the production volumes of sunflower meal in Ukraine will total over 4 mln tonnes, due to increasing of the oilseed processing capacities in the country.
The Vice-President of the Argentinian Sunflower Association (ASAGIR), Diego Lerini reported on the Argentinian market of sunflower oil. According to him, Argentina continues reducing the oilseed production volumes: in the season-2015/16, the country will reduce sunflower seed production by 0.4 mln tonnes, to 2.6 mln tonnes.
The expert noted that decreasing of sunflower seed harvest will reduce the general production of sunflower oil in Argentina to 1.1 mln tonnes in 2015/16 MY. D.Lerini estimated the commodity exports at the level of 300 thsd tonnes (down 175 thsd tonnes), including nearly one third volumes of high-oleic sunflower oil. It is worth noting that the exports of Argentinian sunflower oil show downward trend. For example, in 2014/15 MY the commodity exports totaled 0.48 mln tonnes, while five years ago the index reached 0.98 mln tonnes, and 10 years ago - 1.22 mln tonnes. D.Lerini stressed the high competition rates from Ukrainian sunflower oil, growth of the commodity production volumes in Western European countries, and rather isolated location of Argentina from the main countries-importers of sunflower oil, as the main impact factors reducing the supply of sunflower oil from Argentina on foreign markets. In addition, 30% export duty in Argentina serves as additional domestic factor, which also slows down shipments of sunflower oil, said the expert.
The second session of the conference focused on the launch ceremony of the International Sunflower Oil Association. The General Secretary of the Association, Svetlana Synkovskaya (APK-Inform Agency) introduced the Board of Directors and President of the Association, and also informed about the history and basic functions of the new organization. ISOA is the international non-profit organization, aimed at promoting of international trading with sunflower oil. The organization plans realizing both scientific and trading levels of sunflower oil promotion. The first Board of Directors included:
- Prof. Xu Xuebing (Wilmar) – President of the Association;
- Jorge de Saja (Spanish Crushers Association - AFOEX);
- Stepan Kapshuk (Ukroliyaprom);
- Diego Lerini (Argentinian Sunflower Association - ASAGIR);
- Sergey Kislov (Russian Union of Vegetable Oils Producers);
- Branislav Dozet (International Sunflower Association).
The new organization plans to increase the number of its Directors and announce the conditions of membership for companies and individuals, as well as hold the industry conference events in the main countries-importers and exporters of sunflower oil.
On October 15, the participants of the international conference International Sunflower Oil Symposium visited the oil refining plant of the company Wilmar, and were able to assess high production culture of the enterprise and learn additional information about the range of goods produced by Wilmar. Then the participants visited the grain and oil-filling terminals of Shanghai Liangyou Logistics Group Co., Ltd., located in the Liangyou port. As a reminder, Shanghai Liangyou Logistics Group Co., Ltd. is the large-scale state-owned grain company, located in Shanghai. The group of companies engages in grain and oil storage, grain and oil processing, convenience store operation, grain and oil trade, and import and export businesses. It is responsible for ensuring Shanghai with grains. The group of companies owns the unique berth for shipment of grains and oilseeds, and the container terminal for accepting of sea vessels with deadweight of 50-70 thsd tonnes. The lunch in traditional Chinese restaurant became the finishing touch of the busy sightseeing day.
You can receive more detailed information about the conference participants, as well as the reports, from the marketing department of APK-Inform Agency: [email protected]
Svetlana Synkovskaya, APK-Inform Agency