Ukraine's TAS Agro sets up rapeseed oil production and export to China

MOSCOW. Sept 14 (Interfax) - TAS Agro, part of the TAS Ukrainian finance-industrial group belonging to businessman Sergei Tigipko, has shipped its first 1,500 tonnes of rapeseed oil to consumers in China, Ukrainian media said, citing a company press release.

For the second year in a row, the company has been processing rapeseed, sunflower and soybeans under contract basis at partner factories, the release said.

"In conditions of low profitability, increasing the added value of products through the development of processing is almost the only way to achieve a positive financial result," release said.

"TAS Agro made the right decision to go into rapeseed processing, since it is more profitable to sell oil than raw materials. Last season was the first processing experience for our agricultural holding, and the financial results are positive," Deputy General Director for Commercial Issues Anton Zhemerdeev said, as quoted by the press release.

The holding is currently focused on extending logistics to end consumers and opening new markets to obtain additional margins, he said.

TAS Agro, according to its website, works in crop production, livestock farming, grain storage, and cultivates over 80,000 hectares of land in the Chernigov, Sumy, Kiev, Vinnitsa, Kirovograd and Nikolaev regions.

TAS group was founded by Tigipko in 1998. The company's business interests include the financial sector (banking and insurance segments), pharmaceuticals, agriculture and processing, industry, real estate, and venture projects.