Report: Future of Ukraine crushing industry
According to UkrAgroConsult, in 2011/12 available oilseed crushing capacities in Ukraine are estimated at 11 million tonnes while sunseed production is 9,5 million tonnes.
The inflow of investment in oil extraction industry continues and a number of new plants are under construction and modernization at the moment.
UkrAgroConsult forecasts that Ukraine’s oilseed crushing capacity in 2012 may reach 12.5 million tonnes and 13-14 million tonnes by 2015.
Though quite large vertical holdings were formed in the crushing industry, mergers and acquisitions continue in Ukrainian food sector.
The purpose of the expansion is improvement of business efficiency, increase in capitalization and attraction of additional investments.
Together with continuously growing demand for sunflower, its production lags behind with increasing domestic prices paid by the crushers to farmers and quite sharp decline of the industry margins in 2011/12. The production margin of Russian oil producers is much higher.
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