26 Oct 2018 18:46

Russia may boost fats and oils exports by $5.5 bln to $8.6 bln by 2024 - Agriculture Ministry

MOSCOW. Oct 26 (Interfax) - Russian exports of fats and oils could increase by $5.5 billion to $8.6 billion by 2024 compared with 2017, the Agriculture Ministry reported following a meeting with industry representatives.

Such meetings will be held with representatives from other segments, the ministry said. They will be assigned export targets, by region and individual company, in line with the federal project on Exports of Agricultural Production and the terms for attaining those indicators will be discussed.

The first meeting was conducted with the fat-and-oil products sector because it has the greatest export growth potential up to 2024: $5.5 billion or 20% of the overall goal, the ministry said, noting that the agricultural sector is tasked with raising exports to $45 billion by 2024 from $20.7 billion in 2017.

Representatives from Sodrugestvo, Yug Rusi, Blago, Rusagro, Aston, Cargill, Efko, Bunge and OrelMaslo, Nizhny Novgorod Fats and Oils Plant and Kazan Oil Extraction Plant took part in the meeting They confirmed their readiness to boost exports to $6.9 billion by 2024, or about 80% of the $8.6 billion total.

Deputy Agriculture Minister Oksana Luth commented that the fat-and-oils industry has the greatest export growth potential and is a locomotive for the entire program. "At the meeting, the industry leaders declared their readiness to provide the specific volumes of agricultural product supplies abroad. In turn, the Agriculture Ministry based on the proposals of market participants to draw up optimal forms of state support needed to achieve these goals," Luth is quoted as saying.

According to the materials presented at the meeting, the investment required to implement the designated plans amounts to 365 billion rubles. Fat-and-oils sector exports will increase to $3.6 billion in 2018 and to $3.9 billion in 2019. That said, the share of finished products in exports will increase, while the share of unprocessed products will decline. For example, exports of oilseeds will come to 1.2 million tonnes in 2018 but decline to 726,000 tonnes in 2019. The exports are stipulated to decline to 447,000 tonnes by 2024.

Oilseed processing capacity is slated to rise to 33 million tonnes by 2024 from 23.5 million tonnes in 2018.