On October 12-14, Istanbul welcomed guests of the international conference "Oilseeds & Oils 2009: oilseeds, vegetable oils and by-products". The event was organized by АPК-Inform Agency under support of the Turkish association of vegetable oils producers, association "Ukroliyaprom", Fat-and-oil union of Russia, Ukrainian agrarian confederation and the National Food Exporters Union. The following companies provided sponsorship support to the conference as Allseeds Group (general sponsor), "SGS Ukraine", Asos Grain, Pologovskiy oil-extracting plant, Orsan Dis Tic Ltd. Sti (sponsor of gala-dinner). 182 representatives of 117 companies from 27 countries of the world took part in the work of the conference.
Taking into account the fact that oilseeds and by-products trading came out the borders of the domestic markets of countries-producers or consumers, the world market received the necessity to provide the international top-level meeting of the appropriate thematic area, which would draw together all participants of the world market of oilseeds and by-products. Our agency chose Turkey as the place of realization of such conference, namely – Istanbul. The atmosphere of the present historic industrial, trading and cultural center, connecting Europe, Asia, the North Africa and the Middle East, and the business style of the hotel Ritz-Carlton Istanbul, where the conference took place, facilitated the fruitful work of the participants.
Summarizing the conference work, we came to the conclusion that high interest of large number of leading companies, displayed in the conference, showed the importance of regular realization of such meetings.
We are waiting for You in the second conference Oilseeds & Oils in 2010!
The brief review of target reports of the conference "Oilseeds & Oils-2009":
During the report "World market of oilseeds and vegetable oils: current condition, tendencies, prospects, forecasts", David Jackson, the expert of LMC International Ltd., marked the continuation of high dependence of vegetable oil prices on crude petroleum oil prices; essential change of monthly volumes of biodiesel consumption by the EU countries, due to the change of prices for vegetable oils and crude petroleum oil; efficiency of changing of raw material for biodiesel production, which depends on prices for vegetable oils in the USA. At the same time, the expert also concentrated on the fact that the biodiesel industry creates the flexibility of vegetable oils consumption.
Zsolt Vinze, the Assistant Vice President of the international consulting company R.J.O'Brien, covered the issues concerning the world financial crisis, and the influence on the market of oilseeds and vegetable oils in own report. According to the expert, the target factors, influencing the development of the industry oilseeds and vegetable oils in the season-2008/09 and 2009/10 МY, include the low production volumes of soybean in the USA and droughts in Argentina in 2008/09 МY; low ratio of the world soybean reserves to consumption rates; the sudden imports of soybean to China; the decrease of demand in biodiesel from soybean and rapeseed oils; essential reduction of prime cost of the future harvest production in South America.
The report of Vadim Litvinenko, the analyst of АPК-Inform Agency, "Argentina, Russia, Ukraine: competitive environment on the market of sunflower seed and by-products" identifies the positions of the mentioned countries on the world market of sunflower seed and sunflower oil. Thus, as V. Litvinenko stressed, the countries concentrate nearly 53% of the world production volumes of sunflower seed and 32% of the world exports. Also, the indicated countries provide 85% of the world exports of sunflower oil. The prospects of the product output and processing in the countries show the confident future trend of growing, which also will become the factor of the increase of competition on the market of sunflower oil between Argentina, Russia and Ukraine.
Siegfried Meyer, the Senior Vise President of Austrian Biofuels Institute, reviewed the prospects of the world biodiesel industry in his report "Main developmental tendencies of the world industry of biofuel, and the prospects of non-food usage of vegetable oils". Particularly, S. Meyer stated that keeping of the bullish trend on the vegetable oils world market still stays as one of the most negative factors for development of the biodiesel industry.
Rifat Tekbas, the Head of Oils and Seeds Desk of the leading trading company OR-SAN DIS TICARET VE LTD.STI, presented the report concerning the condition of the industry of production and processing of oilseeds in Turkey and prospects of the new season. According to him, to date, the annual oilseed processing capacities in Turkey total 5 mln tonnes, vegetable oils refining – 1.5 mln tonnes, margarine products output – 1 mln tonnes per year. In 2009/10 МY, oilseeds production is expected at the level of 1.55-1.66 mln tonnes as opposed to 1.65 mln tonnes in the previous season, including the forecast of sunflower seed production at the level of 800 thsd tonnes (830 thsd tonnes in 2008/09 МY).
Vladimir Petrichenko, the General Director of ProZerno Ltd., presented the current situation on Russian market of oilseeds and vegetable oils, and the forecasts for the new season in his report during the conference. According to forecasts of the expert, in 2009, Russia expects for reduction of sunflower seed production volumes to the level of 6.67 mln tonnes (7.35 mln tonnes in 2008). At the same time, the index became the third largest position in the list of the oilseed production volumes in Russia. In the new season, Russia also expects for the reduction of sunflower seed and sunflower oil exports compared to the previous season by 90 thsd tonnes and 160 thsd tonnes respectively.
Stepan Каpshuk, the General Director of the Association "Ukroliyaprom", marked the main achievements of Ukrainian fat-and-oil industry, and the current problems and threats, provided the characteristics of the market of oilseeds and by-products in Ukraine, and promulgated the forecasts of production, consumption and exports of the products in the new season, in his report "Ukrainian market of oilseeds and by-products: current state and opportunities".
Taking into account the essential influence of Argentina on the situation on the world market of sunflower seed and oil, the conference participants paid high attention to the report of Sebastian Olivero, Director of AGRO-TECEI Consultants According to the forecast, in the season-2009/10, sunflower sowing areas in Argentina will total 1.95 mln ha (6.2% from all sowing areas). The index nearly corresponds to the level of the previous season, but cedes to the indices of the previous three seasons (2005/06-2007/08). According to S.Olivero, the expansion of soybean became the main reason of the decrease of sunflower sowing areas compared to 1990th years. In the season-2009/10, the oilseed will be sown throughout 19 mln ha as opposed to 7 mln ha in 1997/98 МY.
Irina Оzip, Head of Foreign Trade Department of АPК-Inform Agency, in own report "Restrictions and possibilities of the Black Sea companies while exporting oilseeds and by-products" concentrated on the main events on the world market of oilseeds and vegetable oils in 2008/09 МY, alignment of forces of competitors, changing in the list of main importers of vegetable oils. The expert also paid attention to facilities and restrictions of products from the Black Sea region on European market, difficulties of delivery operations on Turkish market, long-term import demand in vegetable oils from India, and prospects of the new season.
