Russia reduces palm oil purchases

UFA, 22 June 2017. /Bashinform News Agency, Olga Murtazina/. Russia has reduced purchases of palm oil. In the first quarter of this year, the import of the product declined by 17%, Izvestia reports. This is the minimum volume since 2015, the report of Rospotrebnadzor says. In the first three months, purchases amounted to 193.8 thousand tons. A year ago, 227 thousand tons were purchased.

Experts believe that the reduction in supplies is due to a decrease in prices for domestic sunflower oil, as well as tightening control over products containing palm oil. From the next year it is planned to oblige manufacturers to indicate on packages information about palm oil or other oil contents in large quantities. This especially relates to dairy products, in which animal fats are replaced by vegetable fats.

According to Rospotrebnadzor, the main importer of palm oil is the Voronezh EFKO company, the largest Russian producer of fats for the food and confectionery industry (64.5% share). The company confirmed that due to sunflower oil cheapening its hydrogenated form was more often used in production. Consumer prices for sunflower oil began to decline in September 2016 and by May 2017 fell from 112.04 rubles per kilogram to 102.7 rubles per kilogram. Nevertheless, palm oil continues to be a cheaper ingredient - its price is at least one third less.