Source: Ukragroconsult (Ukraine)
Efko, one of the largest agro-industrial firms in Russia, has closed down two of its sunflower oil processing plants located in the Krasnodar region, according to a report by The Moscow Times.
The company stated, “The current market conditions dictate that sunflower processing is only feasible with negative profit margins, especially for export purposes. Consequently, like many others in the industry, we have opted to halt processing until the market becomes more favorable.”
Efko further noted that both facilities primarily focused on foreign trade. Nevertheless, the company highlighted that this closure is merely a “temporary operational decision.”
Market sources indicate that in mid-March, sunflower oil selling prices from agricultural producers in southern Russia surpassed 50 rubles per kilogram, making it unviable to achieve profitability in processing. For processing sunflower oil to be profitable, prices need to stay within the range of 39-40 rubles per kilogram.
Additionally, Russian farmers attribute the elevated prices of raw materials to last year’s poor harvest.