News
04.10.2011
Ukraine's economic news Introduction of export duty for sunflower oil to hit farmers most of all, say experts
The introduction of export duty on sunflower oil, soybeans and rapeseeds, as proposed by the Economic Development and Trade Ministry, would hit Ukrainian farmers most of all, according to experts polled by Interfax-Ukraine.
Deputy Director of the analytical department of Sokrat Investment Group, Ivan Panin, said the introduction of the duty would automatically cut the purchase prices by processors and exporters by the size of the duty. The expert said that it's unlikely that exporters will reduce their margin from the said foodstuff.
Of the large agricultural companies, only Landcom could be affected by the introduction of the duty, as it earns its key income from planting and exporting rapeseeds, Panin said.
"It's unlikely that other large players would give up their margins, and the losses will be passed on to contractors," he added.
An analyst from Concorde Capital Investment Company, Yehor Samusenko, said that if the duties were introduced, around one third of the duty would be covered by sunflower oil producers and two thirds on farmers.
"Today the difference between the price of sunflower seeds from the new harvest and the price of sunflower oil is 0.36%, while year-over-year it was 0.44%, so sunflower oil producers have started including the duty in the prices of sunflower oil," he said.
