News&Events
31.03.2024
Flaxseed: higher tariffs for Russian oilseeds
BRUSSELS/MOSCOW. Brussels issued a first proposal for increased import tariffs on Russian and Belarusian grain products on Friday. This will undoubtedly have an impact on the prices within the EU for flaxseed.
EU Commission issues proposal
On Friday the European Commission issued a press release proposing to increase the tariffs on imports into the EU of cereals, oilseeds and derived products (i.e. grain prodcuts) from Russia and Belarus. These include wheat, maize and sunflower meal. Objective is to prevent the destabilisation of the EU, tackle exports of stolen grain from Ukraine and to prevent Russia from using export revenues from the EU to fund its war of aggression against Ukraine. The EU, in fact, imported products worth EUR 1.3 billion (USD 1.4 billion) from Russia in 2023. Due to the country's close political and economical ties with Moscow the increased tariffs will also apply to Belarus. Transits to third countries will, however, remain possible...
EU Commission issues proposal
On Friday the European Commission issued a press release proposing to increase the tariffs on imports into the EU of cereals, oilseeds and derived products (i.e. grain prodcuts) from Russia and Belarus. These include wheat, maize and sunflower meal. Objective is to prevent the destabilisation of the EU, tackle exports of stolen grain from Ukraine and to prevent Russia from using export revenues from the EU to fund its war of aggression against Ukraine. The EU, in fact, imported products worth EUR 1.3 billion (USD 1.4 billion) from Russia in 2023. Due to the country's close political and economical ties with Moscow the increased tariffs will also apply to Belarus. Transits to third countries will, however, remain possible...
Central reported.
The merger was expected to lead to investment in AOI’s Central Queensland crushing plant, which would quadruple the company’s total Australian crushing capacity to 160,000 tonnes, the 8 March report said.
Following the merger, EOC would merge with AOI to form a subsidiary under the new Australian Oilseeds Holdings (AOH) entity, which was expected to become the largest cold-pressed oil and meal producer in the Asia Pacific region, Grain Central wrote.
The move would see AOI director and Cootamundra Oilseeds managing director Gary Seaton become the CEO and chair of AOH.
AOI chief financial officer Bob Wu would continue in his role with AOH.
“Upon the closing of this transaction, and our commencing trading as a publicly traded company, investors will have the opportunity to invest in Australian Oilseeds’ growth and mission to become a global leader in our market of providing chemical free non-GMO feed ingredients into the food supply chain,” Seaton was quoted as saying in a statement.
AOI currently produces cold pressed organic food-grade oils and vegetable protein meals from canola, sunflower, soyabean, safflower, linseed and olive crops.
The merger was expected to lead to investment in AOI’s Central Queensland crushing plant, which would quadruple the company’s total Australian crushing capacity to 160,000 tonnes, the 8 March report said.
Following the merger, EOC would merge with AOI to form a subsidiary under the new Australian Oilseeds Holdings (AOH) entity, which was expected to become the largest cold-pressed oil and meal producer in the Asia Pacific region, Grain Central wrote.
The move would see AOI director and Cootamundra Oilseeds managing director Gary Seaton become the CEO and chair of AOH.
AOI chief financial officer Bob Wu would continue in his role with AOH.
“Upon the closing of this transaction, and our commencing trading as a publicly traded company, investors will have the opportunity to invest in Australian Oilseeds’ growth and mission to become a global leader in our market of providing chemical free non-GMO feed ingredients into the food supply chain,” Seaton was quoted as saying in a statement.
AOI currently produces cold pressed organic food-grade oils and vegetable protein meals from canola, sunflower, soyabean, safflower, linseed and olive crops.
30.03.2024
Ukraine. Kernel exports refined vegetable oil to 59 countries
Despite military risks and geopolitical barriers, Kernel continues to export refined vegetable oil to 59 countries around the world, 32 of which are own-brand oils.
This is reported by the company’s press office.
Head of export sales of refined vegetable oil in Kernel Ivan Rudenko during the exporters’ summit from Forbes Ukraine noted that the company focuses on diversification by geographical principle.
“Now the key regions for us are Asia, North Africa, the Middle East, the European Union and America, where each of these regions does not have more than 30%,” he specified.
According to Ivan Rudenko, in addition to diversification by geography, Kernel currently has a balanced proportion in sales channels: the company cooperates with large traders (30%), manufacturers (30%) and retail (40%).
This is reported by the company’s press office.
Head of export sales of refined vegetable oil in Kernel Ivan Rudenko during the exporters’ summit from Forbes Ukraine noted that the company focuses on diversification by geographical principle.
“Now the key regions for us are Asia, North Africa, the Middle East, the European Union and America, where each of these regions does not have more than 30%,” he specified.
According to Ivan Rudenko, in addition to diversification by geography, Kernel currently has a balanced proportion in sales channels: the company cooperates with large traders (30%), manufacturers (30%) and retail (40%).
30.03.2024
Turkish oilseeds production forecast to rise
Oilseeds production in Turkey is expected to increase in the 2024/25 marketing year compared to the previous year, due to larger soyabean, sunflowerseed and cottonseed crops resulting from favourable growing conditions, according to a report by the US Department of Agriculture (USDA).
The USDA’s Foreign Agricultural Service (FAS)’s Global Agricultural Information Network (GAIN) report projected a 12% increase in total oilseeds production to 3.1M tonnes.
“This increase in production is attributed to strong domestic demand for oilseeds and their respective by-products, continued government support to farmers, and assumes favourable weather conditions throughout the crop year,” the USDA said in the Turkey: Oilseeds and Products report.
The Turkish government continued to make payments to farmers to incentivise oilseed production, with a production premium paid based on the amount produced and a separate area-based payment made to offset rising fuel and fertiliser costs, the 7 March report said.
Sunflowerseed production was expected to increase by 8% to 1.675M tonnes to meet rising consumption demands, which were forecast to increase to 2.4M tonnes, up 300,000 tonnes from the previous year. Imports are also forecast to increase by 175,000 tonnes to 775,000 tonnes.
The USDA projected a slight increase in soyabean production with a 10,000 tonne increase to a record 150,000 tonnes.
The USDA’s Foreign Agricultural Service (FAS)’s Global Agricultural Information Network (GAIN) report projected a 12% increase in total oilseeds production to 3.1M tonnes.
“This increase in production is attributed to strong domestic demand for oilseeds and their respective by-products, continued government support to farmers, and assumes favourable weather conditions throughout the crop year,” the USDA said in the Turkey: Oilseeds and Products report.
The Turkish government continued to make payments to farmers to incentivise oilseed production, with a production premium paid based on the amount produced and a separate area-based payment made to offset rising fuel and fertiliser costs, the 7 March report said.
Sunflowerseed production was expected to increase by 8% to 1.675M tonnes to meet rising consumption demands, which were forecast to increase to 2.4M tonnes, up 300,000 tonnes from the previous year. Imports are also forecast to increase by 175,000 tonnes to 775,000 tonnes.
The USDA projected a slight increase in soyabean production with a 10,000 tonne increase to a record 150,000 tonnes.
30.03.2024
Moldova’s largest oil producer suspends operations due to buy Ukrainian sunseed
Moldova’s largest oil producer, Floarea Soarelui, has suspended operations due to a lack of sunflower seeds. This was stated by the company’s director Stella Ostrovetski, INFOTAG reports.
According to her, Floarea Soarelui cannot buy enough sunflower seeds on the local market and cannot import them, as the import licensing mechanism introduced in October 2023 is practically inoperative.
“In January 2024, we tried to get the right to import seeds from Ukraine, but the specialized commission of the Ministry of Agriculture did not issue us a license,” Ostrowiecki said.
She noted that the company can process more than a thousand tons of sunflower seeds per day, so it needs large volumes to continue operating, which it cannot buy. For this reason, production was suspended in January, and now the plant in Bielce and Danube Oil in Giurgiulesti have been shut down again.
“According to our estimates, there are only about 100 thousand tons of sunflower seeds left on the market. Some farmers do not want to sell at the market price now, but want to keep the seeds, hoping that prices will rise in the summer,” Ostrowiecki added.
According to her, Floarea Soarelui cannot buy enough sunflower seeds on the local market and cannot import them, as the import licensing mechanism introduced in October 2023 is practically inoperative.
“In January 2024, we tried to get the right to import seeds from Ukraine, but the specialized commission of the Ministry of Agriculture did not issue us a license,” Ostrowiecki said.
She noted that the company can process more than a thousand tons of sunflower seeds per day, so it needs large volumes to continue operating, which it cannot buy. For this reason, production was suspended in January, and now the plant in Bielce and Danube Oil in Giurgiulesti have been shut down again.
“According to our estimates, there are only about 100 thousand tons of sunflower seeds left on the market. Some farmers do not want to sell at the market price now, but want to keep the seeds, hoping that prices will rise in the summer,” Ostrowiecki added.
29.03.2024
Egyptian GASC bought sunflower oil at a tender for $10/t more than in February
Egypt's GASC held an international tender on March 28 for the purchase of vegetable oils with delivery in May and payment 180 or 270 days after the opening of the letter of credit.
As in previous auctions, 9 applications for the supply of sunflower oil were submitted to the tender. But if at the tender on February 22 the offer prices were $957-985/t C&F with payment in 180 days and $974-1010/t C&F with payment in 270 days, then yesterday oil was offered at $941-1050/t C&F with payment in 180 days and $963-1300/t C&F with payment in 270 days.
If the international companies Bunge and ADM were ready to sell oil cheaper than in the previous tender, the Russian exporters offered a price much higher than the market, especially with delayed payments, although during the bidding they agreed to lower the price from the offered $995-998/t to $930/t C&F.
The number of soybean oil offers decreased from 6 to 4, and the offer prices increased from $1,000-1,050/t to $1,085-1,092/t C&F with payment in 180 days and from $1,025-1,075/t to $1,110-1,195/t C&F with payment after 270 days.
As in previous auctions, 9 applications for the supply of sunflower oil were submitted to the tender. But if at the tender on February 22 the offer prices were $957-985/t C&F with payment in 180 days and $974-1010/t C&F with payment in 270 days, then yesterday oil was offered at $941-1050/t C&F with payment in 180 days and $963-1300/t C&F with payment in 270 days.
If the international companies Bunge and ADM were ready to sell oil cheaper than in the previous tender, the Russian exporters offered a price much higher than the market, especially with delayed payments, although during the bidding they agreed to lower the price from the offered $995-998/t to $930/t C&F.
The number of soybean oil offers decreased from 6 to 4, and the offer prices increased from $1,000-1,050/t to $1,085-1,092/t C&F with payment in 180 days and from $1,025-1,075/t to $1,110-1,195/t C&F with payment after 270 days.
29.03.2024
European Commission proposes tariff increases on grain and oilseed imports from Russia and Belarus
The European Commission (EC) has proposed increasing tariffs on imports of cereals, oilseeds and grain products into the European Union (EU) from Russia and Belarus in a bid to placate farmers and some member states, AgriCensus reported.
Depending on the product, the tariffs would increase to either €95 (US$102.66)/tonne or to an ad valorem duty of 50%, the 22 March report said.
In addition, Russia and Belarus would no longer have access to any of the EU’s World Trade Organization (WTO) quotas on grain and oilseeds offering better tariff treatment for some products.
“We propose the imposition of tariffs on these Russian imports to mitigate the growing risk to our markets and our farmers,” EC president Ursula Von der Leyen was quoted as saying.
When announcing the proposal, the EC said one of its aims was to prevent EU market destabilisation, which farmers across EU countries had been protesting over since the start of the year.
The tariffs are also aimed at preventing the export of illegally acquired grain and oilseed produced in Ukrainian territories from being sold in the EU, AgriCensus wrote.
While the tariffs would impact the sale of Russian grains into EU markets, the proposal would continue to allow Russian grains’ transit through the EU, storage in EU customs warehouses, transportation on EU vessels, and the provision of insurance and financing services for the trading of Russian grain, the report said...
Depending on the product, the tariffs would increase to either €95 (US$102.66)/tonne or to an ad valorem duty of 50%, the 22 March report said.
In addition, Russia and Belarus would no longer have access to any of the EU’s World Trade Organization (WTO) quotas on grain and oilseeds offering better tariff treatment for some products.
“We propose the imposition of tariffs on these Russian imports to mitigate the growing risk to our markets and our farmers,” EC president Ursula Von der Leyen was quoted as saying.
When announcing the proposal, the EC said one of its aims was to prevent EU market destabilisation, which farmers across EU countries had been protesting over since the start of the year.
The tariffs are also aimed at preventing the export of illegally acquired grain and oilseed produced in Ukrainian territories from being sold in the EU, AgriCensus wrote.
While the tariffs would impact the sale of Russian grains into EU markets, the proposal would continue to allow Russian grains’ transit through the EU, storage in EU customs warehouses, transportation on EU vessels, and the provision of insurance and financing services for the trading of Russian grain, the report said...
29.03.2024
Sunflower seeds: prices surge in Bulgaria
SOFIA/BRUSSELS. EU countries reached a last-minute deal on Wednesday to the extend free trade with Ukraine until June 2025. Welcome as this news is, the stance towards Ukraine has hardened. In Bulgaria, the prices for sunflower seeds have risen sharply.
Last-minute compromise
Although the ambassadors of the EU member states agreed to extend the free trade with Ukraine until June 2025 in Brussels on Wednesday evening, the Commission was forced to make amendments to its January proposal. Issue is that tensions boiled over in April 2023 after Poland, Hungary and Slovakia issued overnight bans on several agricultural products coming in from Ukraine and Romania as well as Bulgaria followed suit. Background is that Russia's full scale invasion of Ukraine in February 2022 prompted Brussels to lift all tariffs and quotas...
Last-minute compromise
Although the ambassadors of the EU member states agreed to extend the free trade with Ukraine until June 2025 in Brussels on Wednesday evening, the Commission was forced to make amendments to its January proposal. Issue is that tensions boiled over in April 2023 after Poland, Hungary and Slovakia issued overnight bans on several agricultural products coming in from Ukraine and Romania as well as Bulgaria followed suit. Background is that Russia's full scale invasion of Ukraine in February 2022 prompted Brussels to lift all tariffs and quotas...