Oil Palm Industry Economic Journal Vol. 19 (1) March 2019 p. 1-8

Sunflower Oil Industry in Russia and its Impact on Import of Malaysian Palm Oil

Nazlin Ismail*; Kalsom Zakaria* and Balu Nambiappan*
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Russia is the second largest producer of sunflower seed and sunflower oil in the world after Ukraine. According to the Oil World, a total of 10.90 million tonnes of sunflower seed was produced in 2017/2018 season and in 2018/2019, the country is expected to produce 11.40 million tonnes due to better returns and higher demand from the domestic processing sector. Trade in sunflower seed is small due to higher domestic demand and the imposition of export tax. In 2017, a total of 4.66 million tonnes of sunflower oil was produced which about 50% was exported and the rest was consumed domestically. Since 2012, Russia is a net exporter of oils and fats, with export of sunflower oil increasing to more than one million tonnes and gradually becoming an important player in the sunflower oil trade. In terms of imports, palm oil is the main vegetable oil imported by Russia with the major suppliers from Indonesia and Malaysia. This study aims to determine the factors influencing demand for palm oil in Russia using Autoregressive Distributed Lag (ARDL) models over the period Q1:2000 to Q4:2017. This study shows demand for palm oil is significantly correlated with Russian palm oil consumption, sunflower seed crushing, Russian palm oil import from Indonesia, palm oil prices and sunflower oil prices. The information in this article was collected primarily from various secondary sources. It is hoped that this article will assist the Malaysian oil palm industry players to better understand the development of the Russian vegetable oil industry.

Keywords: sunflower oil, Russia, palm oil, ARDL

About Post Author


* Malaysian Palm Oil Board,
6 Persiaran Institusi, Bandar Baru Bangi,
43000 Kajang, Selangor, Malaysia.

E-mail: snazlin@mpob.gov.my