New export horizons were considered by experts at the Fat-and-Oil conference

However, to do this, players will have to seriously increase exports and master new directions. At the Fat-and-Oil conference 2018 experts discussed what factors should be taken into account when entering new markets.

Defining export horizons, Russian producers of oil and fat products are aimed at strengthening their positions on the Indian and Chinese markets. China today has a huge market of vegetable oils consumption. Thus, in 2017 the volume of import of vegetable oils amounted to 34 million tons. For comparison, the total volume of Russian exports of vegetable oils in 2017 amounted to 3.1 million tons. According to the representative for trade and economic affairs of the Chinese Embassy in Russia, in 2017 the volume of exports of sunflower oil to China amounted to $230 million, which is 10.8% of the total exports. In addition, this country has a fairly specific structure of consumption of vegetable oil: more than a half falls on soybean oil, peanut, canola and palm oils are represented approximately equally. The Chinese consumer is just starting to get used to sunflower oil.

The Indian market is even more capacious for Russian exports. With population of 1.3 billion people, India imports up to 70% of vegetable oils. And as noted by the Head of the procurement division of oil and fat products of the Indian company ITC Ltd. Alimuhammad Lakdawala, there are reasonable expectations that in the near future this figure will reach 90%. He added that Russia can also count on the position of a significant importer, but it is necessary to solve the issue of comfortable for the Indian market prices and stable quality.

"The plans of Russian players to work more closely with India and China are more than realistic. So far, Ukraine is our only competitor in this position. Here, we need a clear strategy for moving forward in global markets. For example, regarding sunflower oil and meal, Russia can overtake Ukraine in five seasons," - said the Executive Director of the Fat-and-Oil Union of Russia Mikhail Maltsev. He added that the issue of providing a comfortable price for partner countries is directly related to the transport and logistics facilities of our players. "Russian exporters should be able to work in conditions of market volatility: when it is necessary to hold the products, or, conversely, to let go at a convenient time. This is a serious challenge for us. However, if Russia declares itself as a global player, it will have to solve this problem in the most foreseeable time", Mikhail Maltsev concluded.

Fat-and-oil conference 2018: "Fat-and-Oil industry - the driver of growth of the Russian agroindustrial complex" took place in Moscow on April 3-4, 2018. The event was supported by the Ministry of agriculture; the organizer was the Fat-and-Oil Union of Russia. The sessions were attended by more than 230 people, including top managers of leading Russian oil and fat companies, representatives of legislative and executive authorities, analysts of specialized sales markets (of Europe, the Middle East and the Far East) and major competitors, as well as technologists of the enterprises and representatives of the scientific community of the industry.

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