In 2008 the share of unrefined oils in Ukrainian oil-and-fat industry gross value was about 50% – ProAgro Company research

17:17 | ProAgro

Having analyzed the Ukrainian oil-and-fat market ProAgro Company came to the conclusion that Ukraine is largely saturated with feedstock for the oil-and-fat industry for internal domestic needs. Furthermore, due to the historic circumstances, Ukraine is oriented toward foreign markets

The Ukrainian oil-and-fat branch today is a powerful and one of the most promising agro-industrial complexes, which unites the producers and crushers of oilseeds as well as producers of products based thereon.

The total gross cost of oil-and-fat products produced in Ukraine increased by 29% in 2008 compared to the previous period and totaled 22.67 billion UAH (without VAT) according to the State Statistics Committee of Ukraine.

At the same time, 49% of the gross value of all products produced in Ukraine (i.e. 11.18 billion UAH) was accounted for by unrefined oils without the change of the chemical composition (soybean, peanut, olive, sunflower, safflower, cotton, rapeseed, coleseed, and mustard). Their share decreased in favor of the same group of refined oils. Sales of crude oils in natural terms account for about 35% of the total volume of all oil-and-fat products produced in Ukraine.

The second large group in the structure of gross values is that of refined oils (soybean, peanut, olive, sunflower, safflower, cotton, rapeseed, coleseed, and mustard). In 2008, its share increased to 20% of the total gross value of oil-and fat products due to the growth of production and sales of the ready products by 4% and 9% respectively, which served as a push to the increase of the gross cost of products by 58% to 4.43 billion UAH.

In 2008, the gross cost of margarine products demonstrated a 51% growth and totaled 9% of the total gross cost of oil-and-fat products, or 1.99 billion UAH. One should mention that all produced products are sold. And the share of the sold margarine made from domestic feedstock increased to 92% (85% in 2007). Exports const mainly of elite margarines.

Despite the decrease of the volumes of production of mayonnaise and emulsified sauces in 2008 by 44% (to 1.42 billion UAH), which in the total structure of oil-and-fat products totals 6%, all the produced products of this type were sold. Nearly all of them were made from the domestic feedstock (99%)

Another group of goods having a significant impact on the overall gross cost of the products commodities is meal and wastes of production of solid fats and oils. In 2008, this type of goods accounts for a low share of gross cost (7% of the overall gross cost) but it makes up a considerable share of the total volume of the produced goods of oil-and-fat industry - 26%. The gross cost of produced products was 1.48 billion UAH. One should mention that the total volume of this type of products is sold.

You can get more detailed information about Ukrainian fat-and-oil industry in the new thorough research by ProAgro Company "Ukraine: Oil-and-Fat Industry Portray", which covers this industry developments for last 5 seasons. The main analysis of the fat and oil market for MYs 2007/08-2008/09 is presented in all its aspects, from oilseeds production, crush and price situation to consumption and domestic and foreign trade.

To get additional information about this work, please, contact to ProAgro Information Company: