Vegetable oil market is characterized by seasonal instability.

30 Apr 2009 • by Natalie Aster

Experts of «Information Agency «CredInform North-West» reached such conclusion having made marketing research: Russian vegetable oil market: state and development trends.

On the market is widely presented production both domestic, and foreign manufacturers from Ukraine, Moldova, Lithuania, Holland, Brazil, Italy, Germany. Also the Russian production is delivered in many countries; in this case it is necessary to note that export of vegetable oils in 2008 grew in twice from Russia.

Now the domestic market of vegetable oils, according to experts, is on active stage of development. So, in 2008 the total vegetable oil market capacity has increased in relation to 2007 at 6%. Thus experts note that the market is strongly monopolized, as basic manufacturers of vegetable oil are just some enterprises which own majority of the largest plants of oil seeds processing.

The structure of manufacture and assortment of output goods keeps changing. In manufacture of vegetable oils with a permanent long-term of sunflower priority, it is observed the essential increase in a share of raps, soya and other kinds of oils. However sunflower oil still occupies a huge share as in manufacture and consumption.

Within a season of 2009/10 the further development of the Russian vegetable oil market will depend on growth of vegetable oils resources connected with a high sunflower harvest in 2008 and low price level on it. Considerable reduction of prices is observed on the market of bulk vegetable oils.