As compared to 2006, in 2007 the import of crop processing products decreased by 29.2% in kind. The year of 2007 was marked by instability of prices; prices on sunflower-seed oil meal and oilcake, for instance, increased by more than twice. A similar picture is observed in the market of soybean and rapeseed processing products. As a result of this, the volume of import increased by 162.5% in terms of money.
As before, the main share of import fell on soybean processing products (95.9% in kind and 98.17% in terms of money). In 2006, the figures were lower by 16.95% and 7.35% respectively.
The share of import of sunflower-seed processing products is at the level of 4.1% in kind and 1.83% in terms of money. Their share in the total volume of import was down by 16.95% in kind and 7.35% in terms of money.
As compared to 2006, the volume of import of sunflower-seed processing products decreased by 86.2% in kind and 67.6% in terms of money, and that of soybean products – by 14% and 75.5% respectively.
The leader among crop processing product suppliers to the Russian market has traditionally been Bunge Ltd. In 2007, the company accounted for 59.69% of the market in kind and 61.1% in terms of money.
According to last year’s data, Argentine company Molinos Rio de la Plata S.A. accounted for 5.99% of the market in kind and 6.13% in terms of money.
According to the 2007 indicators, the aggregate share of the four leading supplier companies constituted 75.56% of the market in kind and 75% in terms of money.
The leader among crop processing product suppliers to the Russian market has traditionally been Bunge Ltd. In 2007, the company accounted for 59.69% of the market in kind and 61.1% in terms of money.
According to last year’s data, Argentine company Molinos Rio de la Plata S.A. accounted for 5.99% of the market in kind and 6.13% in terms of money.
According to the 2007 indicators, the aggregate share of the four leading supplier companies constituted 75.56% of the market in kind and 75% in terms of money.
Rating of crop processing product supplier companies (in kind)
Source: Abercade Research Company
Marketing Research Analysis of the 2007 crop processing products market
In 2007, the largest share of imported crop processing products was supplied to Kaliningrad Province: 45.18% in kind and 46.24% in terms of money. More than 80% of the consignment in kind was intended for “Sodruzhestvo” Trade House Ltd.
A considerable amount of soybean processing products was supplied to Leningrad Province (25.7% in kind and 26.18% in terms of money). The main supplier to that region was Bunge Ltd. Company, which supplied more than 87,000 tons of soybean oil meal for Agroproviding Ltd.
According to the 2007 data, Moscow Province received 17.1% of crop processing products in kind and 17.5% in terms of money.
The volume of import in kind was down by 47.6%. The greater part of import (over 88%) fell on Argentine soybean oil meal intended for Euroveg Zerno Ltd. Company.
Considerable volumes of crop processing products were delivered to Penza Province (3.19% in kind and 3.27% in terms of money), Pskov Province (2.54% and 2.6% respectively) and Novosibirsk Province (2.78% and 2.24% respectively).
EXPORT OF CROP PROCESSING PRODUCTS
As compared to 2006, the volume of export increased by 4.1% in kind and 134.7% in terms of money. The 134.7% increase in the volume of export in terms of money was due to the growth of prices on oil-bearing crops (among other things, a key role was played by prices on sunflower seeds).
As in previous years, the largest share in the export structure belonged to sunflower-seed processing products. Their share constituted 91.84% in kind and 90.64% in terms of money.
The share of soybean processing products constituted 1.13% of the total export volume in kind and 2.56% in terms of money, and the share of rapeseed was equal to 7.03% in kind and 6.8% in terms of money.
Structure of export of crop processing products (in kind)
Source: Abercade Research Company
Marketing Research Analysis of the 2007 crop processing products market
Marketing Research Analysis of the 2007 crop processing products market
As in the preceding periods, the main sales markets of crop processing products were Italy and Turkey. In 2007, the total volume of export into these countries constituted 43.13% in kind and 42.53% in terms of money. Large markets were also Israel (7.86% in kind and 7.69% in terms of money), Greece (5.34% in kind and 5.27% in terms of money), Cyprus (5.32% in kind and 5.26% in terms of money) and Egypt (4.3% in kind and 4.25% in terms of money).
The total share of the seven key consumer countries constituted 72.32% in kind and 71.3% in terms of money.
CROP PROCESSING PRODUCT CONSUMPTION
In 2007, the volume of the Russian market of crop processing products constituted 2,755,220 tons. Thus, the market grew by 9.2%. The share of import in the market volume was 17.6% in kind. The share of export in the output was 30.1% in kind.
2007 market structure by types of crops (in kind)
Source: Abercade Research Company
Marketing Research Analysis of the 2007 crop processing products market
Marketing Research Analysis of the 2007 crop processing products market
In 2007, the volume of the crop processing product market constituted 1,376,770 tons, which was 2.5% less than in the previous year. The cause was a rise in prices on sunflower seeds in the international market, which entailed a decrease in the volume of import of this crop, which fell by 86.2% during one year. The volume of the Russian market of soybean processing products was 1.56% up as compared to 2006 due to a sharp increase in prices on leguminous and oil-bearing crops in the world market. The share of the import constituted 37.15% of the market volume. The share of export in the output was equal to 0.0%.
The volume of rapeseed processing products was 37.37% up as compared to 2006. The product was not imported. The share of export in the output constituted 38.18%.
TRENDS
According to preliminary estimates, 2008 promises to be a tense period for the fodder sector. In the 1st quarter, the situation in the domestic market of crop processing products is taking shape under the impact of a shortage of seeds due to their small carryover storage and a tense situation in the world market. Prices on sunflower seeds, soybeans and rapeseeds will probably continue to grow as their reserves diminish, which will affect demand. In its turn, this will boost prices on crop processing products as well. Ukraine, which rates second in the world in the export of sunflower-seed oil meal, has every chance of occupying a leading position in the export of rapeseed oil meal as well. This is promoted by a number of factors such as the availability Europe’s largest (40 million ha) area of land under crop, half of which is black soil; favourable climatic conditions; access to the Black Sea; and establishment of vertically integrated agroprocessing companies in the country, which stimulate the development and improvement of the legal and regulatory framework of the futures market. These factors are conducive to the formation of competitive prices and quality of the Ukrainian oil meal
The volume of rapeseed processing products was 37.37% up as compared to 2006. The product was not imported. The share of export in the output constituted 38.18%.
TRENDS
According to preliminary estimates, 2008 promises to be a tense period for the fodder sector. In the 1st quarter, the situation in the domestic market of crop processing products is taking shape under the impact of a shortage of seeds due to their small carryover storage and a tense situation in the world market. Prices on sunflower seeds, soybeans and rapeseeds will probably continue to grow as their reserves diminish, which will affect demand. In its turn, this will boost prices on crop processing products as well. Ukraine, which rates second in the world in the export of sunflower-seed oil meal, has every chance of occupying a leading position in the export of rapeseed oil meal as well. This is promoted by a number of factors such as the availability Europe’s largest (40 million ha) area of land under crop, half of which is black soil; favourable climatic conditions; access to the Black Sea; and establishment of vertically integrated agroprocessing companies in the country, which stimulate the development and improvement of the legal and regulatory framework of the futures market. These factors are conducive to the formation of competitive prices and quality of the Ukrainian oil meal
Based on the data of Abercade Research Company
