Sunflower oil plants in Russia are shutting down due to losses

Efko, a major agro-industrial company in Russia, has temporarily halted operations at two sunflower oil plants in the Krasnodar region due to unfavorable market conditions. The current market price for oilseeds is too high, leading to negative margins for processing, especially for export. The company emphasizes that this is a temporary measure and that they will resume processing when the market improves. The high prices for raw materials are attributed to last year's crop failure.

One of the largest agro-industrial companies in Russia, Efko, has shut down two sunflower oil plants in the Krasnodar region. The company reported this, The Moscow Times reports. “The current market situation is such that sunflower processing is possible only with negative margins, especially for export. In this situation, we, like many other market participants, have decided to suspend processing until more favorable market conditions arise,” the company said. As Efko clarified, both enterprises were primarily focused on foreign trade. At the same time, the company emphasized that the shutdown of their work is “nothing more than a temporary operational decision.” According to market sources, selling prices for oilseeds by agricultural producers in southern Russia exceeded 50 rubles in mid-March. per kilogram, which does not allow to ensure the profitability of processing, and to reach the point of profitability of processing, sunflower needs no more than 39-40 rubles. per ...