Export of Russian vegetable oils to China has reached a record level, strengthening its position in the global market.

In the first quarter of 2024, the export of food plant oils (sunflower, rapeseed, soybean) from Russia to China reached a record 578.3 thousand tons, which is an 18.2% increase compared to the same period of the previous year, according to a press release from the federal center "Agroexport". Analysts note that this allowed Russia to strengthen its position as the main supplier of food plant oils in this segment. According to the center's data, all Chinese imports of food plant oils accounted for 58.4% of the total volume.

Kirill Lozovoy, an analyst at OleoScope, told Agroinvestor that in January-April 2024, Russia increased the export of plant oil in all directions by 9% and reached 2.5 million tons. China purchased about a quarter of this volume, which is approximately 660 thousand tons. The PRC is one of the strategic markets for domestic exporters, as it is one of the leading buyers of sunflower oil (second place this year), soybean oil (third place), and rapeseed oil (first place), explained the expert.

China also acquires meal from Russia, particularly sunflower and rapeseed meal. The export of the latter to China in the first four months increased almost six times, reaching 39 thousand tons. Lozovoy believes that China will become an even more important market for meal and cake shipments from Russia, especially if the European Union imposes duties on Russian agricultural products. In addition to China, Russian oils were purchased by other partner countries this year, such as India (a 3.3-fold increase in sunflower oil purchases), Turkey (an increase of 27%), and Egypt (an increase of 31%). Demand for soybean oil also increased from Algeria (up 69%) and India (up 3.7 times), added the analyst.

According to Lozovoy, the prospects for increasing the export of all Russian oils look very optimistic. However, much will depend on export prices for palm oil, which are under pressure due to a decrease in exports from Malaysia and expected production increases, which may lead to an increase in supply and a more attractive price for this product, the analyst concluded.

Executive Director of the Oil and Fat Union, Mikhail Maltsev, noted in a conversation with Agroinvestor that this year India significantly increased purchases of Russian oils, more than tripling them, as well as Turkey and Algeria (by 53% and 46% respectively). The total volume of vegetable oil exports to the global market in the first quarter of 2024 increased by 20% compared to the previous year. According to the Oil and Fat Union's forecast, the volume of vegetable oil exports will exceed 3.8 million tons by the end of the first half of the year. The main factor is the competitive price, especially for sunflower oil, noted Maltsev.

According to the Oil and Fat Union's forecasts, the production capacities of Russian oil plants may increase by more than 6% by the end of the current year, reaching 33 million tons. Taking into account implemented and planned projects to increase capacities, an additional 4 million tons of growth is expected in two years. Consumption of vegetable oils in Russia for food purposes amounts to 20.3 kilograms per person per year. Sunflower oil remains the most popular, corn oil is widely used in the south of the country, soybean oil in the east, and flaxseed oil in the northwest.