On June 8-9, an international conference "VegOil Trade" was held in Rotterdam, which outlined the vectors for the development of the oilseeds and byproducts market s in the near and long term. The event was attended by about 200 delegates from 25 countries — the EU and the Black Sea region, the Americas, Asia and the East.
The guests included large exporters, importers of oilseeds and fat and oil products, brokerage companies, processors, representatives of industry associations, analytical companies, etc.
APK-Inform has already held an international conference in Rotterdam — in 2016. It was all the more interesting to once again plunge into the incredible atmosphere of this city, where the largest industrial port in Europe, exchanges and offices of the world's leading agricultural traders are located.
It should be noted that the focus of the event, both in the session hall and on the sidelines, was held on Ukraine and the prospects for the development of its oilseed market.
It's nice that despite such a difficult time, many Ukrainian delegates found an opportunity to attend the conference, who were happy to talk with old friends and make new useful contacts.
Among the guests of the conference were such major players in the Ukrainian market as Oliyar (sunseed and rapeseed processor, refined oil producer, exporter), OPTIMUSAGRO TRADE (sunseed processor, exporter of sunflower oil and meal), Nezhinsky Zhirkombinat (sunseed and rapeseed processor, exporter), Viktor and K (processor of sunseed and soybeans, exporter of products, manufacturer of products under the TM Royal Smak), Lan-Oil Trade (processing and export of sunseed, rapeseed) and others.
The conference program included three sessions:
- Fundamentals of the vegetable oil market;
- Market of alternative oils and by-products;
- Session-seminar: «Fundamentals, prices & future outlook for the veg oil and seed markets».
To give the participants of the event the most complete picture of the development of the fat and oil industry, APK-Inform invited leading market participants and experts from Brazil, Turkey, Great Britain, Germany, France, the Netherlands, Ukraine, and Kazakhstan as speakers.
The session part turned out to be very eventful — the participants literally «soaked in» a huge amount of market information, estimates and forecasts, having received a powerful boost for the further development of their business on the eve of the new season.
The conference was opened by Senior Economist at LMC International Aaron Henson. He said that there is a decrease in supply in the global vegetable oils market, but this situation can be improved by increasing the production of palm oil or processing oilseeds.
“The supply of vegetable oils will continue to decline for another six months. At the same time, demand is expected to grow in a few years due to the development of the biofuel industry,” the expert noted.
Aboissa Commodity Brokers sunflower oil specialist Laura Pereira said that South American countries are facing three key challenges this season — weather, economic recession and domestic political issues.
According to her, the agricultural market of South America is interesting because even with the negative impact of weather, the deterioration in the prospects for crop production is uneven — that is, a high yield in some countries can compensate for its decline in others.
In turn, Iryna Ozip, Marketing Director of APK-Inform Agency, said in her report that the Ukrainian market of oilseeds and processed products has significantly transformed in the current season, adjusting to current realities. At the same time, the work of the industry demonstrates rather high performance even with regular blocking of ports.
In 2022/23 MY, Ukraine remained among the TOP sunseed producers in the world, however, there was a significant redistribution of its use within the country. The share of oilseed exports from the total supply increased to 14%, which is the maximum for a long period.
The production and export of rapeseed also set a record this season, as the speaker noted. In addition, the soybean market in Ukraine is seeing a resumption of production amid high liquidity.
I. Ozip stressed that the European factor now comes to the fore (after the uncertainty with the work of the "grain corridor"): the continued ban on the export of sunseed and rapeseed from Ukraine to 5 EU countries, difficulties with transit. Already in July, an aggravation with transportation is expected due to the start of harvesting campaign of grains, rapeseed and switching the countries' internal logistics to their own harvest.
Kazakhstan has become a new player in the EU oilseed market this season, which has nearly doubled the supply of fat and oil products to European countries. This was declared by the Chairman of the Board of the National Oilseed Processors Association (NOPA) Yadykar Ibragimov during the international conference "VegOilTrade-2023" in Rotterdam.
The head of NOPA noted that traditionally, about 90% of the export of Kazakh oils and meal falls on China and the countries of Central Asia. However, recently, taking into account the change in the geopolitical situation, new directions of supplies have been added, in particular Turkey and European countries.
In general, the export of Kazakh fat and oil products to the EU countries in 2022 increased by 91%, to 75.53 thsd tonnes, and in monetary terms — by 118%, to $32 mln.
“We will increase these volumes in the next 2-3 years,” the head of NOPA believes.
Many speakers noted the importance of the biofuel industry for the development of the agro-industrial complex. Thus, UFOP Managing Director Stefan Arens said during his speech that the development of the biofuel industry is gradually occupying its important niche and is a powerful driver for the agricultural sector.
Biofuel production volumes in the world are gradually growing and by 2024 may reach the highest level. At the same time, it is expected that the increase in biodiesel production will be the highest.
Rapeseed oil has a good chance of replacing the lack or decline in the use of palm or soybean oil in biofuel production. However, there may not be enough rapeseed on the market to meet the demand, and in this context, the war in Ukraine has become a challenge for the industry. Although a fairly high rapeseed harvest in the EU was able to partially compensate for the reduction in the supply of Ukrainian oilseed.
A busy session day ended with a discussion, where many questions were raised on prices, where the market is heading, what will happen next with the “grain corridor”, how the Ukrainian oilseeds market will cope with many new challenges, including restrictions from the EU countries.
Fruitful communication and exchange of opinions continued during the gala dinner, where the guests could relax and cool down the “intensity of emotions” with a glass of excellent wine.
And on the second day, the participants of the international conference "VegOil Trade" were lucky enough to go on an excursion to the largest industrial port in Europe, which plays a huge role in the development of global agribusiness.
The length of the port is more than 40 km, and the total area is 12`500 hectares.
On the territory of the port of Rotterdam there are 6 plants for the production of biodiesel, 5 for the refining of oils, as well as 17 terminals for the storage of oil and fat products with a total capacity of 1.2 mln tonnes.
The guests of the event were delighted with the gigantic scale and capacity of the port of Rotterdam, from where the flow of goods is redistributed to European countries.
VegOil Trade-2023 was successful and dynamic. Thanks to everyone who found the opportunity to come to the conference, to our wonderful speakers, as well as to those who actively helped in preparing and holding the event.
APK-Inform is grateful for the support of the conference to sponsors: logistics company LAT FLEX SIA; international certified marine surveyor and inspector QSS Global SA; transport company OOC Terminals; Active Containers Services.
The exclusive partner of the conference is the National Oilseeds Processors Association of Kazakhstan (NOPA).
The event was held with the support of UFOP (Union for the Promotion of Oil and Protein Plants, Germany) and the Brazilian Aboissa Commodities, the largest brokerage company in Latin America.