Russia may double refined sunflower oil exports in 4-5 years - institute
MOSCOW. Oct 24 (Interfax) - Russia may double exports of refined sunflower oil in four to five years, bringing exports to $800 million, head of the International Independent Institute of Agricultural Policy (IIIAP) Yelena Skrynnik, who was the agriculture minister in 2009-2012.
"Russia has potential for a two-fold increase, from $400 million to $800 million of supplies of bottled sunflower oil to the global market," Skrynnik told Interfax.
She said that currently Russia is one of the global leaders on the sunflower oil market with exports amounting to about 2 million tonnes (in the 2014-2015 season). "However only 280,000 tonnes, or 14%, of foreign supplies account for the more profitable bottled refined oil," she said.
Noting that the cost of bottled sunflower oil is 30%-40% higher than oil that is not bottled, Skrynnik said that "by introducing certain stimulus measures to support product exports with a high added value, to expand export geography, in the next four to five years we may double supplies of processed oil." She said that volume of the global market of bottled oil exceeds $3 billion.
Skrynnik said that a key support mechanism for domestic exporters should be considered by the state - the provision of wide access to foreign markets with the help of duties and tariffs, phytosanitary and other international agreements. Along this this, internal tax, financial and logistical preferences will be extremely important for supplier companies.
Skrynnik cited the experience of Turkey, which today is one of the global leaders in the export of refined oil, earning almost $700 million a year. Turkey imported more than 60% of raw sunflower oil from Russia. "As a result, more than half is Russian, by origin of raw materials, refined sunflower oil from Turkey is supplied to countries of the Middle East: Iraq, Syria, Libya and others. For our exporters this is lost multi-million-dollar profit," Skrynnik said.
At the same time, Turkey is actively defending its positions. In September of this year it decided to raise duties on the import of processed sunflower oil from 50% to 67.5% of customs cost.
Skrynnik said that the main target market for Russian refined sunflower oil exports are the countries of the Middle East and Northern Africa, which now are focused to a significant extent on Russia's main competitors - Turkey and Ukraine.
