From export of raw materials to processed products export: the example of Russian sunflower oil market

Abstract

The article analyzes the main trends, problems, factors and prospects for export growth of agri-food products based on the example of the sunflower oil market, as well as the factors that facilitate the transition of the industry from export of raw materials to processed products export. Introduced in 2001, the export tax on raw materials contributed to a gradual decline in commodity exports and an increase in domestic production, as well as exports of sunflower oil. Heavy demand among the population, on the one hand, and strong competition between large companies, on the other, create the necessary conditions for sustainable development of the industry. The prospects for sunflower oil exports depend mostly on the vast and rapidly growing markets of China and India.