BELARUS NEWS AND ANALYSIS

DATE:

06/11/2008

Belarus: sun oil prices to become stabilize in 1.5-2 months

This year, Belarus plans to produce nearly 100.000 tonnes of vegetable oil from new crop rapeseed, according to the concern "Belgospichprom".

Belarus harvested a record rapeseed crop at the level of 630.000 tonnes and is able to provide the domestic market with own high-quality rape oil. But the country has several problems with sales due to uncompetitive prices. During the current year, purchasing prices for the oilseed were increased by 20% to 266 EUR/t. At first, asking price for rape oil totaled 917.7 EUR/t, but then decreased to 836 EUR/t. To date, some enterprises offer the product at the price of 722 EUR/t on special terms. But at the same time, the vegetable oil of the domestic production is noncompetitive compared to foreign oils.

For example, Ukrainian sun oil costs half the price of Belarusian oil, which affects trade of Belarusian producers. The enterprises of "Belgospichprom" buy crude sun oil in Ukraine and Russia, deodorize and then bottle the product. But this autumn, Belarus has not provided mass sun oil purchases in Russia yet.

In 2008, Ukraine expects to harvest large crop of sunflower, up 1.5 times compared to the previous year. That is why, prices for new crop sunflower faced a sudden decrease, and enterprises declared about their plans to decrease prices fro bottled sun oil. The market of Belarus also received some parties of cheap Ukrainian sun oil. But in the nearest future, the government of Ukraine will change the policy and the supplies of sun oil at low prices will stop.

According to the concern "Belgospichprom", in the nearest 1.5-2 months the situation with price fluctuations for vegetable oils in neighbor countries will stabilize and Belarusian enterprises will be able to conclude contracts for supplies of crude sun oil at acceptable prices.

Source:

http://www.agrimarket.info/showart.php?id=66084

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