Supplemental Statement - FARA

Received by NSD/FARA Registration Unit 08/23/2012 9:59:28 AM
MARKET ^sights
Continued from page 6
While the production of vegetable oils
has been exceptional, consumption, on
the other hand, has been increasing
slowly. Per capita consumption is
forecast to be 25.6kg in 2011, an
increase from 24.2kg recorded in 2010.
This reflects a good potential in the
consumption side when total
consumption is projected to increase to
1.2 MMT in 2011. up from 1.1 MMT
recorded in 2010. Sunflower oil forms an
integral part of the Ukrainian diet. Aside
from that, food products such as
margarine and mayonnaise are
produced with sunflower oil as the main
ingredient, plus the addition of other
inexpensive oils, mostly palm oil.
Being one of the world's biggest
producers of sunflower oil. Ukraine has
always been a net exporter of oils and
fats. In 2010. it exported a total of 2.85
MMT of oils and fats, more than the 2.48
MMT recorded in 2009. with sunflower oil
forming the bulk of this at 2.7 MMT
recorded in 2010 and 2.34 MMT in 2009.
However. Oil World has predicted that
P
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Europe's New Force Ukraine
Paves Way for Continuous Palm Oil Imports
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exports of oils and fats could slightly
decrease to 2.8 MMT in 2011. as exports
of sunflower oil are also forecast to
decrease to 2.64 MMT. Most of the
exports of sunflower oil go to the EU
countries, India, Egypt and a small
amount of sunflower oil is also exported
to Russia.
Importance of Palm Oil in Ukrainian
Oils and Fats Market
Although a major producer of sunflower
oil, Ukraine's import of oils and fats, in
particular palm oil, has been growing. In
the last 10 years, Ukraine has seen
changing consumption patterns taking
place. Consumption of soybean oil in the
country used to be quite huge, but now
more palm oil is used in the production of
margarine and mayonnaise, as well as in
soaps and detergents.
However, palm oil imports decreased in
2010 as only 371,500 MT of oils and fats
were imported, compared with 419,600
MT imported in 2009. The economic
meltdown and Ukrainian currency
devaluation certainly had a major
influence on the demand for palm oil.
although palm oil imports remained high
compared with imports of other
vegetable oils. The bumper crops since
the last two years have also led to higher
crushing activities and domestic
consumer preference continues to boost
sunflower oil consumption.
Palm oil (or tropical oil as it is widely
known in the country) and its fractions
are used by major producers of specialty
oils and fats, namely Zaporozhye,
Vinnitsa. Kharkiv. Lviv. Kyiv Margarine
Factory and Kirovograd. The companies
are consumers of tropical oils and its
fractions, which are imported for their
• • i
pioduction needs. Before the
introduction of specialised plants for
palm oil processing, only six types of
specialty fats were produced in the
country. Today, a company like
Zaporizhya ZHK alone produces more
than 60 types of specialty fats.
Yuzhne and lllichivsk were the first two
places where new facilities for
processing and fractionation of CPO
were built; creating job opportunities and
a new era of specialty fats in Ukraine.
Ukraine's position is not just an importer
of palm oil, but a several metric tonnes
are also re-exported, especially- to
neighbouring CIS countries.
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O Delta Wilmar CIS 65%
„J Krealiv 11%
Znpori/hya ZHK 9%
Lviv ZHK 3%
O KhrkovZHK 2%
IOFIC 2%
, Others 8%
Source MPOC
Specialised terminals for handing tropical
oils were introduced in sea port of
Yuzhne, Odessa, as an extension to the
building of a complex for processing
palm oil. Construction was completed in
2006 and with a capacity of 1.5 MT/day,
this saw CPO coming from both
Malaysian and Indonesia. Delta-Wilmar
CIS is the major importer of tropical oils
in Ukraine, and the company re-exports
the tropical oils and fractions to the CIS
region.
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Continued on page 12 •