Oil and fat products demand subsides amid quarantine — forecast
The demand for several categories of oil and fat market will grow, for some of them — fall. However, the forecast and expectations are rather negative. This was stated by Yuri Golyanich, Director General of Delta Wilmar CIS.
"At the moment, I can't say that we have experienced an immediate situation worsening. But we expect a change in demand. Because, in fact, there has been a combination of negative factors such as economic crisis, quarantine and restrictive measures. And we do not know how long it will last," stressed Yuri Golyanich.
According to him, the company has not experienced a decline in demand for the major group of Delta Wilmar CIS products — oil and fat products. But at the same time, the company notes, the consumption of vegetable oil and fats is likely to decrease as a result of the shutdown of public catering.
"Perhaps the consumption of this product will be offset by households, given that many people work remotely. But there will be some kind of consumer pessimism. People will spend less and consume less," says the company's CEO.
With regard to changes in the prices of fat products, in his opinion, much will depend on demand and the exchange rate. Thus, if demand falls, it will push producers to price flexibility.
"By contrast, the cost of some fats is affected by the cost of imported raw materials, which will depend on the exchange rate," summed up Yuri Golyanich.
As a reminder, sunflower oil export from Ukraine in Jan-Feb of the current year stood at 1.21 mln t. Product supply is valued at USD 882.8 mln.