Sunflower oil plants in Russia are shutting down due to losses

One of the largest agro-industrial companies in Russia, Efko, has shut down two sunflower oil plants in the Krasnodar region. The company reported this, The Moscow Times reports.

“The current market situation is such that sunflower processing is possible only with negative margins, especially for export. In this situation, we, like many other market participants, have decided to suspend processing until more favorable market conditions arise,” the company said.

As Efko clarified, both enterprises were primarily focused on foreign trade. At the same time, the company emphasized that the shutdown of their work is “nothing more than a temporary operational decision.”

According to market sources, selling prices for oilseeds by agricultural producers in southern Russia exceeded 50 rubles in mid-March. per kilogram, which does not allow to ensure the profitability of processing, and to reach the point of profitability of processing, sunflower needs no more than 39-40 rubles. per kilogram.

At the same time, Russian farmers explain the high prices for raw materials by last year’s crop failure.

Tags: Russia, sunflower oil