Russia pumps up fats and oils production

By Rod Addy

- Last updated on GMT

Sunflower oil is just one of the oils EFKO handles
Sunflower oil is just one of the oils EFKO handles

Related tags: Fat, Palm oil, British retail consortium

Russian manufacturer EFKO has pumped cash into fats and oils processing in the first quarter of 2012 as part of an ongoing investment plan, boosting capacity.

Posting its January – March results, the company, which produces industrial fats, mayonnaise and vegetable oil, said the investment had taken annual production of industrial fats to 600,000t.

That had been achieved by completing the reconstruction of its facilities for oil deodorisation, neutralisation and ester exchange and installing new fats packaging units at factories in Belgorod and Krasnodar.

“We have added about 40,000t of capacity per year at Krasnodar,”​ an EFKO spokesman told FoodNavigator. The upgrade had taken the capacity of that factory to 280,000t, he said.

New packaging line

The spokesman added: “We have upgraded our deodorisation. But the biggest enhancement is the installation of a new packaging line.”​ The firm relied on several processing equipment brands, including DeSmet and Alfa Laval, he added.

EFKO has two main markets: retail fats, such as vegetable oils and mayonnaise, and industrial fats, for bakery, ice cream, dairy and confectionery manufacturers. The firm works with a range of tropical oils including palm oil, palm kernel oil, coconut oil, and their fractions, as well as with traditional vegetable oils such as sunflower oil.

About 90% of the firm’s production serves the domestic Russian market, but it said it was considering expanding sales across former Soviet republics.

Sales volumes

Sales volumes for industrial fats and margarines used by confectionery and bakery processors increased by 12% for the business in the first quarter, from 76,100t in the same period last year to 85,300t. That segment represents more than three quarters of EFKO’s trade.

Mayonnaise sales increased by 53% in the first quarter of 2012, while sales of bottled vegetable oil increased by 56% compared to January – March 2011.

EFKO now commands 15.8% of the Russian mayonnaise market and 6.9% of the vegetable oil market.

The company's brands include Sloboda and Altero. It is a member of the Roundtable on Sustainable Palm Oil and is certified by the British Retail Consortium (BRC) and the International Food Standard (IFS).

Related topics: Market Trends

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