TOP-10 of Ukrainian companies-producers of refined sunflower oil in 2017/18 MY

APK-Inform

 

In the current article, APK-Inform Agency represents the TOP-10 of Ukrainian companies-producers of refined sunflower oil, which became the leaders last season, and together managed to cover nearly 90% of the market. APK-Inform analysts formed the rating following the statistics data provided by companies on their production volumes in September-August period of 2017/18 MY.

 

Main market players

In 2017/18 MY, the market sector of refined sunflower oil in Ukraine faced some changes compared with the previous season. First of all, the changes were observed among the main producers of the oil. Thus, in the season-2017/18 MY in Ukraine the company Bunge Ukraine became the new leader in the market segment, with the market share of 17.7%, against 16.6% in the previous season.

It is worth noting that previously for three seasons in a row, Kernel Group was the leader among producers of refined sunflower oil (in 2016/17 MY, the share totaled 20.1%), but in 2017/18 MY the company reached the second position. Also, in the reporting period PJSC Zaporizhia oil extraction plant reduced the production of refined sunflower oil, which mainly uses the product in the production of fats. The plant declined the production volumes, due to using of cheaper fats in the final production.

Pology Oil Extraction Plant reduced the production volumes by 11.7 thsd tonnes, due to shutdown of the refining facilities in some months of 2018 for preventive maintenance of technical equipment.

 

TOP-10 of companies-producers of refined sunflower oil in Ukraine

Rating in 2017/18 MY

Company name

September-August of 2017/18 MY

Changes of 2017/18 to 2016/17 MY

September-August of 2016/17 MY

Production, `000 tonnes

Share, %

Production, `000 tonnes

Share, %

1

Dnipropetrovsk Oil Extraction Plant (Bunge)

119,8

17,7

 + 1 ↑

117,4

16,6

2

Kernel Group (Poltava and Prykolotnoe oil extraction plants)

114,6

16,9

 - 1 ↓

142,3

20,1

3

Delta Wilmar CIS

99,2

14,6

 =

104,4

14,8

4

Viktor and K (including Hydrosend)

63,5

9,4

 =

63,1

8,9

5

Oliyar

59,3

8,7

 =

56,5

8,0

6

UkrOliya LLC

42,5

6,3

 + 1 ↑

35,1

5,0

7

ВВВВ (Kaissa)

38,5

5,7

 + 1 ↑

31,9

4,5

8

PJSC Zaporizhia oil extraction plant

31,1

4,6

 - 2 ↓

45,1

6,4

9

PJSC Kyiv margarine factory

21,3

3,1

 + 1 ↑

15,1

2,1

10

Pology Oil Extraction Plant

20,0

3,0

 - 1 ↓

31,7

4,5

 

Others

68,2

10,1

 

64,7

9,1

 

TOTAL

678,0

100,0

 

707,3

100,0

* APK-Inform figures

 

At the same time, most companies-producers increased the production of refined sunflower oil, and some even launched new production lines. So, in 2017/18 MY the new plant of oil refining GradOil launched in the country.

 

Decline in the consumption and exports

Also, there were significant changes in the consumption structure of refined sunflower oil in Ukraine, which volumes continued steadily declining, due to the reduction in the population of the country.

 

 

At the same time, the changes affected the trade structure of refined sunflower oil, due to the significant oversaturation of the global market with vegetable oils last season. There was observed some decreasing of the demand for Ukrainian refined sunflower oil, and therefore the export volumes slightly decreased to 434.3 thsd tonnes (441.2 thsd tonnes in 2016/17 MY).

The export geography of Ukrainian refined sunflower oil is rather large, and covers nearly 130 countries-importers. At the same time, Malaysia with the market share of 14% and the United Arab Emirates (10%) were the main importers. It should be noted that Egypt, which previously took the 2nd position in the rating of importers of the Ukrainian product, almost stopped the imports in favour of the cheaper Russian crude sunflower oil.

 

 

Prospects

Traditionally, refined sunflower oil is in good demand among the population of Ukraine, because retail supermarket chains represent a huge number of the product under different brands. At the same time, every year the population of the country is decreasing, and according to the state statistical forecasts in the beginning of 2019 the figures will again reduce by 0.4% compared with the population level in the beginning of 2018. Also, producers of margarine products reduced the consumption of refined sunflower oil, and replaced the formulation of fat production with the cheaper refined oils, including palm oil. According to APK-Inform analysts, in the season-2018/19 the figures in the country may even continue declining — down another 2.7 thsd tonnes.

As for the forecasts of refined sunflower oil production in 2018/19 MY, it is likely that the price situation on the market of refined sunflower oil, as well as the demand for other vegetable oils, will become the key factors.

 

The large-scale producer of refined sunflower oil in Ukraine — UkrOliya LLC agreed to share his opinion to APK-Inform Agency about the current trends in the market segment.

 

 

 

Yuriy Shevchenko, Business Development Director at UkrOliya LLC

 

Demand rates

Refined sunflower oil on the Ukrainian market is more in demand than crude sunflower oil. So, packaged sunflower oil produced by UkrOliya LLC produced in Ukraine, are distributed in the following ratio: refined oil — 85%, and crude oil — 15%. The trend developed, due to the fact that the Ukrainian population prefers choosing refined oil for frying and salad dressing.

The company's share on the Ukrainian market of packaged sunflower oil totals nearly 12%. We provide the sales of our packaged products in Ukraine in 22 oblasts, and in more than 35`000 market outlets.

 

Trade

The share of export sales totals 60%. We deliver the wide range of products to more than 40 countries: near-abroad countries, the USA, Canada, the Middle East, and the European Union.

 

Price situation

Every year, the marginality of sunflower oil production decreases, due to the growth of production capacities in Ukraine, and limited volumes of oilseed raw materials for processing. The reporting factors stimulate the demand for sunflower seed and the following increase of prices. The prices of refined sunflower oil in the country depend on the prices of sunflower oil on the global market, which in turn, are already at the historical minimum level.

 

Competition with other vegetable oils

Despite the popularity of refined sunflower oil in food consumption, high-oleic and organic oils started competing with the product. But Ukraine exports nearly 70% of the produced organic agricultural goods.

UkrOliya will work so that our organic oil will not only make famous Ukraine abroad, but also was available for each Ukrainian family.

 

Prospects

The market of vegetable oils is gradually shifting to consumption of healthy vegetable oils. To date, high-oleic sunflower oil (HOSO) is one the major global trends. In European countries, America, Asia and Malaysia, there is the active trend to replace the usage of palm oil with high-oleic oils. UkrOliya actively produces high-oleic sunflower oil, which is one of the most healthy oils due to the high natural content of oleic fatty acids.

 

Viktoria Zelenaya, APK-Inform Agency