In the terms of the global financial crisis, the fat-and-oil industry still remaines as almost the only sector of Ukrainian economics, showing the tendencies of the growth of production and export volumes. Both market participants and officials acknowledge the fact. However, Ukrainian producers of fat-and-oil products still need for something else to feel "entire happiness".
Thus, we asked Anatoliy Barylchenko, the general director of the company "Delta Wilmar CIS", to tell about the present conditions of Ukrainian fat-and-oil producers.
- Anatoliy Nikholaevich, as several experts say, the fat-and-oil industry of Ukraine is the only branch in the country demonstrating the growth of production and exports. Do you agree with such statement? Does the government support suite growth?
- Of course, the fat-and-oil industry is one of the basic industries of the economics of our country. The last season showed the record volumes of vegetable oils production. For the first time, fat-and-oil industries demonstrate such record indices, despite the financial crisis. Nevertheless, then the economics will again start growing due to the enterprises, which really produced competitive commodities, which support main people requirements and still is in high demand. Of course, the government also provided own support to the market development.
- What is Your opinion concerning the issue of cancellation or continuation of the export duties for sunflower seed, and what do You think concerning the idea of restoration of indicative prices for exported sunflower?
- Ukraine takes the leading places in the group of three world producers at sunflower seed and sunflower oil production. I completely support our agricultural producers in the issue of the future cancellation or keeping of export duties for sunflower seed.
Economic turnovers of enterprises, producing the oilseed, will not lower, because enterprises on the domestic market of Ukraine have hard completion in purchasing of the raw material. Ukrainian sunflower oil is exported to many countries of the world. To date, the world market has faced the favorable situation for increasing of sunflower oil exports, demand in vegetable fats grew. At the same time, the market increases usage of vegetable oils in technical aims.
Directly the government should provide the liberalization the market with economic measures only.
- Would you tell about the work of the complex of Delta Wilmar of shipment and processing of tropic oils in the port "Yuzniy", and about the company plans for the new season?
- Delta Wilmar CIS is a rather young enterprise. We still have not reached our estimated capacities. However, our plant functions without any stoppages; we complete all our purchase orders in full measure. According to results of the inner audit in the third quarter of 2009, we increased sales volumes of packaged products by 30%, and increased shipment volumes of fluid cargoes by over 2 times.
In 2010, we plan to launch new project capacities. The enterprise has large-scale geography of sales - countries of the CIS, Eastern and Central Europe; we took the niche due to the high quality of our products, which always continue growing.
- How much did the world financial crisis affect activities of your company? It is known that the corporation IFC provided financial support to projects of your company. Did the cooperation show rather effective results?
- Our company had to face some financial and economic difficulties due to the crisis almost at the beginning of our business activity. The enterprise was launched at the end of 2006. In the middle of 2008, we started growing our business, we almost came to our estimated capacities, however, the events of the autumn 2008 damaged our forces, and we had to lower our shipment and processing volumes. At the same time, the crisis seriously affected the bank system of Ukraine. We received large-scale losses due to the devaluation processes of the national currency: Delta Wilmar CIS had several opened credit lines, and we had to pay the credit in almost double volume. Thus, we covered the losses from own resources and under support of the International Financial Corporation (IFC).
- Anatoliy Nikholaevich, what is Your forecast concerning demand and prices for vegetable oils on the world market at the end of the current and the beginning of the next year? Should we expect for the growth of vegetable oils production in the world in the first half of 2010?
- To date, the situation on the world market of vegetable oils shows the tendencies of the growth of demand in vegetable fats for food aims, the market increases usage of vegetable oils in technical aims.
Besides, according to forecasts of our analysts, in 2015, the global usage of biodiesel will nearly double, and palm oil will take leading positions in biodiesel production.
- Delta Wilmar CIS became the sponsor of the eighth international conference "Fat-and-oil industry-2009". What is the goal of Your participation at the conference, and what do You plan to receive from taking part in such event?
- For the third time, Delta Wilmar CIS becomes the sponsor of the conference "Fat-and-oil industry". It became the good tradition. The conference event is the stable platform, which annually unites leading specialists of the fat-and-oil industry in the whole Ukraine and throughout the world. Our company believes that we can fight all difficulties using common efforts only. In the terms of the financial instability on the market, we should stay together with our partners, it is the chance to become stronger, and increase the level of efficiency of our work. Delta Wilmar CIS plans to support the conference in the future.
Interviewed Roman Zinkov
