Sunflower oil: price and forecasts for the second half of 2024

In the second half of 2024, unrefined sunflower oil may experience several key trends that will affect its prices and availability. Unrefined sunflower oil is produced from the seeds of the common sunflower. The production process for this oil involves cold-pressing the sunflower seeds, which preserves most of the natural nutrients as well as the characteristic flavor and aroma.

Unrefined sunflower oil is widely used both in cooking and in cosmetics and health. In culinary, it is valued for its delicate flavor, which goes perfectly with salads, sauces and as an addition to prepared foods. In cosmetics, it is used to moisturize skin and hair, thanks to its high content of vitamin E and fatty acids, which nourish and protect against dryness. In the diet, the oil supports heart health, thanks to the presence of polyunsaturated fatty acids, and also acts as a powerful antioxidant, protecting cells from oxidative stress.

MBF Group SA offers high-quality vegetable oils, including refined and unrefined rapeseed oil and refined and unrefined sunflower oil. The oils come from, among others. Poland, Belarus, Kazakhstan and Ukraine. The company has an extensive network of contacts and works with experienced refiners and suppliers.

Anticipated market trends

Availability of raw material

The global sunflower seed harvest in 2024 is forecast to be stable, which may favor a balance between supply and demand in the sunflower oil market. Countries such as Ukraine, which is one of the world’s major sunflower producers, will be key to global supply. A stabilization or increase in production in this region could positively affect the availability of the feedstock, which in turn could lead to keeping prices at levels acceptable to consumers and the industry.

In the case of Ukraine, a stable political and economic situation will be key to realizing these forecasts, as past conflicts and instability have had a negative impact on agricultural production. In addition, favorable climatic conditions and investments in modern crop technologies may also help boost crop yields. Other producer countries, such as Russia, Argentina and India, are also expected to play an important role in ensuring global supply, which could reduce the risk of excessive price fluctuations in the event of production problems in one of these regions. All in all, the projected stability in global yields should be conducive to keeping the sunflower oil market in balance in 2024.

Prices and their volatility

Sunflower oil prices may fluctuate depending on general vegetable oil market conditions and the volatility of prices for other oils, such as canola oil. An increase in demand for vegetable oils in various industries, including food and biofuel, could lead to higher prices, especially if there are production constraints. Sunflower oil prices may also be sensitive to unexpected changes in global trade, such as the introduction of new tariffs, sanctions or other trade barriers that could disrupt the flow of raw materials and finished products. High price volatility can also result from trade policy uncertainty, such as decisions on vegetable oil exports or imports in key regions.

Macroeconomic factors

Sunflower oil prices in 2024 will largely depend on global macroeconomic factors that can affect commodity markets. One key element is currency fluctuations, which can directly affect oil prices in international markets. Fluctuations in the value of currencies, particularly the U.S. dollar, have a significant impact on global trade, as most transactions in the commodities market are conducted in this currency. A strengthening dollar can lead to an increase in sunflower oil prices in countries that import the commodity, especially if their currencies weaken. On the other hand, a weakening dollar could ease price pressures in these regions. Another important factor is the overall global economic situation. Global economic downturns, such as those resulting from financial crises, pandemics or armed conflicts, could affect demand for vegetable oils, including sunflower oil.

During a recession, consumers and industry may reduce spending, which in turn can reduce demand and lead to a drop in prices. However, in reverse situations, when economies are expanding, increased demand for food and industrial products, in which vegetable oils are an important ingredient, can lead to higher prices. Equally important is the impact of monetary and fiscal policy, especially in countries that are large producers or consumers of sunflower oil. Decisions to raise interest rates, introduce or eliminate tariffs, agricultural subsidies or international trade regulations can significantly affect production and transportation costs, and thus final oil prices.

Key factors affecting supply

Production in Ukraine: As a major producer of sunflower oil, Ukraine is forecasting an increase in production for the 2023/2024 season. According to information from Ukroliyaprom, production is expected to be higher than before the war, which could significantly affect global supply, provided that the seeds are maximally processed domestically.
Weather conditions: Global weather conditions will be key to the harvest. If conditions are favorable, supply can be expected to stabilize or increase. However, climate change and extreme weather events may introduce uncertainty and affect yields in other key regions.
Vegetable Oil Demand: An increase in demand for sunflower oil, both in the food and industrial sectors, could affect supply dynamics. If demand grows, producers may be forced to increase production, which could lead to further increases in supply.
Prices of other vegetable oils: Sunflower oil prices are also linked to the prices of other oils, such as rapeseed oil and palm oil. An increase in the prices of these oils may prompt producers to increase production of sunflower oil to meet demand and maximize profits.

In conclusion, the supply of sunflower oil on the world market in the second half of 2024 will depend on the stabilization of production in Ukraine, weather conditions and global demand for vegetable oils. Increased production in key regions may contribute to an increase in supply, which will affect the price and availability of oil on international markets. In the Asian sunflower oil market, several important price trends can be expected in the second half of 2024, which will be driven by global developments and local conditions.

Price trends (predictions and forecasts)

Price stabilization: In a global context, sunflower oil prices may show a trend toward stability, with possible fluctuations depending on supply and demand. In particular, production stability in key regions, such as Ukraine, may help keep prices stable.
Impact of competition with other oils: The sunflower oil market in Asia will also be subject to competition from other vegetable oils, such as palm oil and soybean oil. Increased production and exports of palm oil, which dominates the market, could affect sunflower oil prices, especially in countries such as India, which are large importers of
Macroeconomic factors: Currency fluctuations and global economic conditions will have a significant impact on sunflower oil prices in Asia. Changes in trade policy and economic uncertainty may lead to price fluctuations, which will be important for importers and producers.
Domestic Demand: Increased demand for sunflower oil in Asia, due to its use in cooking and industry, could affect prices. If demand increases, producers may be forced to increase prices, which could lead to further increases in the market.

In conclusion, the sunflower oil market in Asia in the second half of 2024 may be characterized by price stability, with potential fluctuations due to global competition, local demand and macroeconomic factors. An increase in demand and changes in the production of other vegetable oils may also affect pricing in the region.

Range of changes in sunflower oil prices

In the second half of 2024, unrefined sunflower oil prices may be characterized by stability, but with potential increases in the event of limited supply or increased demand. Forecasts suggest that prices could increase by a few percent, but the exact extent of changes will depend on a number of variables, including weather conditions and global trends in vegetable oil production.

In conclusion, the unrefined sunflower oil market in the second half of 2024 will be shaped by the balance between supply and demand, macroeconomic factors and changes in the production of other vegetable oils. In the second half of 2024, forecasts for sunflower oil production indicate stabilization, with potential growth in some regions, especially Ukraine.

Key oil production forecasts

Ukraine: According to Ukroliyaprom forecasts, Ukraine’s sunflower oil production in the 2023/2024 season is expected to be higher than before the war, subject to maximum processing of the oilseed. Stabilizing the country’s production is crucial, as Ukraine is one of the world’s major sunflower oil producers.
Global harvest: At the global level, sunflower seed production remains stable compared to the previous year. Increased production in the European Union and other countries may offset lower production in some regions, such as Ukraine and India.
Expectations for the future: Growth in global oilseed production, including sunflower, may result from improved growing conditions in key regions. However, factors such as climate change, weather conditions and trade policies could affect final production results.

All in all, in the second half of 2024, sunflower oil production forecasts point to stabilization, with potential growth in some regions, especially Ukraine, where production could exceed pre-war levels, provided oilseeds are processed to the maximum.

Globally, sunflower seed production remains stable, with growth in the European Union and other countries likely to offset any declines in production in regions such as Ukraine and India. For the future, global oilseed production is projected to increase, but factors such as climate change, weather conditions and trade policies could affect final production results.

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Refined rapeseed oil: market and forecasts for the second half of 2024

Strona główna / sunflower oil

Refined rapeseed oil holds a leading position in the global edible oil market due to its numerous advantages, including its neutral taste, high content of unsaturated fatty acids, and wide culinary and industrial applications. It is preferred both in home cooking and in the food and biofuel industries. Below we will discuss in detail the key aspects of production, major producers and price forecasts for refined rapeseed oil for the second half of 2024.

Refined rapeseed oil is one of the most popular edible oils in the world, prized for its neutral taste, high content of healthy unsaturated fatty acids and versatile use in cooking. It is used for:

Frying: Canola oil has a high smoke point, reaching about 240°C. This makes it an ideal choice for high-temperature frying, while ensuring health safety by minimizing the risk of harmful compounds. It is therefore preferred both in households and in restaurants and other catering establishments, where temperature stability and quality of the final product are required.
Baking: The neutral taste of refined canola oil makes it an excellent ingredient for baking. It does not adversely affect the taste of food, which is especially important in baked goods, where we want to preserve the natural flavor of the ingredients. In addition, its fatty texture contributes to the retention of moisture in cakes and pastries, which is key to achieving the right texture and consistency.
Sauces and dressings: Canola oil emulsifies easily with other ingredients to create smooth and creamy sauces and dressings. Thanks to its neutral taste, it can be used as a base ingredient in a wide variety of recipes, while adding nutritional value and maintaining the high quality of the final product.
Margarines and vegetable fats: It is an essential ingredient in the production of margarines, bread greases and other vegetable fats. Thanks to its stability and versatile application, it is widely used in the food industry, where high-quality and long-lasting fats are needed.
Biofuels: Refined rapeseed oil can be processed into biodiesel, making it an important raw material in the production of alternative fuels for diesel engines. This functionality further increases its importance in the market, affecting the diversity of applications and the stability of demand for this agricultural product.

The production process for refined rapeseed oil involves several steps:

Pressing: rapeseed is pressed to obtain crude oil.
Refining: Crude oil is purified of impurities and undesirable substances using physical and chemical processes such as de-sliming, enzymatic deactivation, degumming, bleaching and deodorization.
Extrusion: the purified oil is subjected to a solvent evaporation process to remove residual volatiles.
Packaging: the finished oil is packed into bottles, cans or other packaging and distributed to consumers.

The largest producers of refined rapeseed oil on each continent are:

Europe

Germany is one of the largest producers of refined rapeseed oil in Europe, thanks to its large rapeseed acreage and developed processing industry.
Ukraine is one of the leading producers of rapeseed oil in Europe. The country has significantly increased its production capacity in recent years, becoming one of the world’s largest rapeseed oil exporters. Ukraine, thanks to its favorable climatic and soil conditions and developed agricultural technology, plays a key role in the European and global rapeseed oil market.
France is one of the largest producers of refined rapeseed oil in Europe. The country has extensive rapeseed acreage and an advanced processing industry.
Poland is also a significant producer of rapeseed oil in Europe. Rapeseed is one of Poland’s main oil crops, and the country has a well-developed vegetable oil processing sector.
The UK also plays an important role in the production of refined rapeseed oil. Cultivation of rapeseed is popular in many regions of the country, and British processing companies produce large quantities of rapeseed oil for the domestic market and for export.

Asia

China is the largest producer of refined rapeseed oil in Asia, due to its large cultivated areas and high domestic demand for vegetable oils.

North America

Canada, particularly the province of Saskatchewan, is the continent’s leading producer of canola oil. Canada is also one of the world’s largest exporters of the oil.

South America

In South America, Brazil is a major producer of canola oil, although canola oil production there is smaller compared to other regions.

Australia and Oceania

Australia is a major producer of rapeseed oil in the region, with large areas of rapeseed and a developed processing infrastructure.

Africa

Canola oil production in Africa is relatively small compared to other continents. There is no clearly dominant producer on the continent, but rapeseed cultivation and rapeseed oil production are gradually developing in some countries in northern and southern Africa.

Refined rapeseed oil price forecast for the second half of 2024

The forecast takes into account several key factors that could affect the stability and direction of prices for this commodity on the world market:

Raw material availability: Global rapeseed yields projected for 2024 are generally good. Abundant harvests in major producer countries such as the European Union (especially Poland, Germany, France), Canada (Manitoba, Saskatchewan), and China (Heilongjiang, Jilin) are likely to increase the supply of refined rapeseed oil. An increase in supply usually puts downward pressure on prices.
Demand for refined rapeseed oil: Stable demand for refined rapeseed oil in the food, industrial (e.g., margarine production, bakery lubricants) and biofuel sectors will be a key factor in stabilizing prices. Growing interest in alternative fuels such as biodiesel may further support demand for this vegetable oil.
Competition with other vegetable oils: Prices of other vegetable oils, such as soybean oil and palm oil, will have a significant impact on the price of refined rapeseed oil. The competitiveness of these products on the world market may affect the price elasticity of rapeseed oil, especially in the context of exchange and substitution between different types of vegetable oils by producers and consumers.
Macroeconomic factors: Currency fluctuations and the overall global economic situation will have a significant impact on refined rapeseed oil prices. Fluctuations in the value of currencies may introduce uncertainty and volatility in commodity markets, which could translate into fluctuations in rapeseed oil prices.

Taking into account the above factors, refined rapeseed oil prices for the second half of 2024 are forecast to follow a generally stable trend, with some possible fluctuations in the short term depending on the intensity of supply and demand and the volatility of macroeconomic conditions. Stable demand from various industry sectors and potentially good rapeseed harvests in major production markets may act as stabilizing factors, although the possibility of unforeseen changes in the global market that may affect the price of this commodity should be taken into account.

On the other hand, rapeseed oil prices in the second half of 2024 may increase slightly due to limited supply and rising consumption, but the increase will depend on many variables, including production of other vegetable oils and global weather conditions.

MBF Group SA is a proven and reliable importer of refined oils from Eastern European countries such as Belarus and Ukraine. The company offers high-quality oils, including rapeseed and sunflower, in both refined and unrefined versions. MBF Group SA boasts documented deliveries to entities in Poland, Germany, France and Slovakia.

Thanks to its extensive experience in purchasing in eastern markets, as well as flexible terms of cooperation and attractive prices, the company has won the trust of many customers. Deliveries are made by various modes of transportation, including tank cars, rail cars and ships, and settlements are made on favorable terms for customers.

Unrefined technical oils: production and market forecasts

Strona główna / sunflower oil

Unrefined oils also called technical oils are vegetable oils that are not suitable for consumption. Like unrefined cooking oils, they are extracted from oil seeds without the use of high heat and chemicals. However, unlike cooking oils, technical oils can contain impurities and substances harmful to health. They are mainly used in industry, where their purity is not as important as for oils for consumption. Despite their plant origin, their use in cooking is completely ruled out due to potential health risks.

MBF Group SA imports and sells unrefined oils, especially sunflower and rapeseed oils. The company has many years of experience in the industry, which allows it to provide top-quality services. Thanks to solid business relationships and cooperation with trusted suppliers, MBF Group SA provides the highest quality oils to meet the requirements of customers in various industrial sectors.

Applications of unrefined technical oils:

Unrefined technical oils are widely used in various industries, including:

Machinery industry: as lubricating and cooling oils.
Textile industry: for impregnation of fabrics and leathers.
Chemical industry: as a raw material for paints, varnishes and detergents.
Cosmetic industry: for making soaps, creams and other cosmetics.
Biofuel industry: to produce biodiesel.

Examples of types of unrefined technical oils:

Technical rapeseed oil
Technical linseed oil
Technical sunflower oil
Technical soybean oil
Technical corn oil

Technical rapeseed oil

General Information: Technical rapeseed oil is widely used in industry. It is extracted from rapeseed without the use of high temperatures or chemicals. It has high viscosity and oxidative stability, making it suitable for many technical applications. It contains monounsaturated and polyunsaturated fatty acids.

Production: Production includes harvesting, drying, cold-pressing and filtration of rapeseed.

Application:

Machinery industry: lubrication and cooling of machinery.
Textile industry: impregnation of fabrics and leathers.
Chemical industry: Manufacture of paints, varnishes and detergents.
Cosmetics industry: production of soaps, creams and lotions.
Biofuel industry: Biodiesel production.

Technical linseed oil

General information: Technical flaxseed oil is extracted from flax seeds. Known for its high content of omega-3 fatty acids, flaxseed oil also has drying properties, making it ideal for industrial applications.

Production: Includes cold pressing of flax seeds and filtration without chemicals.

Application:

Woodworking industry: Used as a base for paints and varnishes.
Textile industry: impregnation of fabrics and fibers.
Chemical industry: Raw material for oil paints.
Cosmetic industry: Used in the production of soaps and personal care products.
Machinery industry: Tool and machine lubrication.

Technical sunflower oil

General information: Technical sunflower oil is extracted from sunflower seeds. It is characterized by a high content of monounsaturated and polyunsaturated fatty acids and vitamin E.

Production: Includes cold-pressing sunflower seeds and filtering them.

Application:

Chemical industry: Manufacture of paints, varnishes and detergents.
Cosmetic industry: Raw material for soaps and cosmetics.
Textile industry: fabric impregnation.
Machinery industry: Used as a lubricant.

Technical soybean oil

General information: Technical soybean oil is extracted from soybean seeds. It is rich in polyunsaturated fatty acids, including linoleic and oleic acid.

Production: Cold pressing of soybean seeds and filtration.

Application:

Chemical industry: Raw material for paints, varnishes and resins.
Cosmetics industry: production of soaps and personal care products.
Textile industry: impregnation of fabrics and leathers.
Biofuel industry: Biodiesel production.
Machinery industry: lubrication of machines and tools.

Technical corn oil

General information: Technical corn oil is extracted from the germ of corn. It contains a high concentration of polyunsaturated fatty acids and vitamin E.

Production: Cold pressing of corn germ and filtration.

Application:

Chemical industry: Manufacture of paints, varnishes and detergents.
Cosmetic industry: Raw material for soaps and cosmetics.
Textile industry: impregnation of fabrics and fibers.
Machinery industry: Used as a lubricant and coolant.
Biofuel industry: Biodiesel production.

Summary

Unrefined technical oils are widely used in various industries, from lubricating machinery to producing cosmetics and biofuels. Due to the lack of refining processes, they may contain impurities, which precludes their consumption, but their natural chemical properties are valuable in many industrial applications.

Vegetable oil production in 2023 and 2024:

World production:

2023: World vegetable oil production in the 2022/23 season is forecast to reach 217.2 million tons, up 8.7 million tons compared to the 2021/22 season.
2024: According to the OECD-FAO, global vegetable oil production in 2024 is expected to increase by 24% (i.e., 41 million tons) from the 2012-2014 average to reach about 210.5 million tons.

Production by type of oil:

Palm oil: Palm oil production is expected to increase by 4.5% to 77.5 million tons in 2023. By 2024, palm oil’s share of the global oil production structure is expected to rise from 34% to 36%.
Soybean oil: Soybean oil production is also expected to increase in 2024, as a result of larger soybean harvests and processing.
Rapeseed oil: Poland is the largest producer of rapeseed oil in Europe. In 2023, its global production was estimated at 32.1 million tons.
Sunflower oil: 2023 sunflower oil production is down due to the war in Ukraine. It is estimated at 20.6 million tons.

It should be noted that the above figures are forecasts and are subject to change depending on various factors, such as weather conditions, commodity prices and government policies.

The future of vegetable oil production and use:

Forecasts for future years indicate further growth in the production and use of vegetable oils. It is estimated that global demand for vegetable oils will increase by about 50% by 2050. There are several factors that will drive this growth:

Population growth: The world population is expected to grow to 9.7 billion people by 2050, which means increased demand for food, including vegetable oils.
Income growth: Rising incomes in developing countries are leading to a shift in dietary preferences to more caloric and processed foods, which often contain vegetable oils.
Urbanization: More and more people are living in cities, which means easier access to processed foods rich in vegetable oils.
Increased use in biofuels: Growing demand for sustainable energy sources could lead to increased use of vegetable oils for biofuel production.

Palm, soybean and canola oils are expected to remain the main vegetable oils produced in the future. Production of other oils, such as sunflower oil, coconut oil and rapeseed oil, will also increase.

Environmental impact:

An increase in the production and use of vegetable oils can have a negative impact on the environment, among other things:

Logging: Cutting down forests for oil plantations can lead to biodiversity loss and soil degradation.
Greenhouse gas emissions: The production and transportation of vegetable oils involves greenhouse gas emissions.
Water pollution: Improper use of fertilizers and pesticides in oil plantations can lead to water pollution.

Sustainable sourcing and use:

There is a need for sustainable sourcing and use of vegetable oils to minimize their negative impact on the environment. This can be achieved by:

Certification of sustainable production: Implementing certification standards that promote sustainable agricultural practices in oil plantations.
Improving production efficiency: Increasing the yield of vegetable oil production per hectare to reduce the need for logging.
Increasing the use of waste: Using waste from vegetable oil production, such as pomace, to produce biofuels or animal feed.
Reducing loss and waste: Reduce vegetable oil loss and waste in the supply chain and among consumers.

The future of vegetable oils is promising, but it is important to balance increased production and use with environmental protection. Sustainable agricultural practices, efficient production technologies and responsible consumption will be key to ensuring the future sustainability of the vegetable oil sector.

In view of the above, MBF Group is constantly expanding its trade in unrefined oils. The company has completed numerous contracts in both the domestic and international markets, supplying technical oils to various industries such as biofuel production, chemicals and cosmetics. Currently, MBF Group SA is actively pursuing more orders, constantly expanding its offerings and adapting them to changing market needs. Thanks to its professional approach and attention to every stage of the delivery process, the company has gained recognition among customers and business partners.

Biodiesel – production, raw materials, certificates and vegetable oils

Strona główna / sunflower oil

Biodiesel is a liquid fuel made from vegetable oils or animal fats. As an alternative fuel, biodiesel plays a key role in the field of sustainability and the reduction of atmospheric emissions. Its main advantages are its biodegradability and its ability to be used both in pure diesel engines and in blends with petroleum.

Biodiesel production

The biodiesel production process is based on an esterification reaction in which vegetable oil (or fat) reacts with alcohol (usually methanol) in the presence of a catalyst. This reaction produces biodiesel (methyl ester of fatty acids) and glycerine as a by-product.

There are several methods for producing biodiesel, the most popular of which are:

The simultaneous hydrolysis and esterification method: Fat is mixed with methanol and a catalyst in the presence of water. This reaction results in simultaneous hydrolysis of the fat (breakdown into glycerine and fatty acids) and esterification of the fatty acids with methanol (formation of biodiesel).
Two-step method: In the first step, the fat is hydrolysed to produce fatty acids. In the second stage, the fatty acids are esterified with methanol using a catalyst.
Raw materials for biodiesel production

The main raw materials for biodiesel production are vegetable oils.

The most commonly used are:

Rapeseed oil: This is the most commonly used raw material for biodiesel production in Poland and Europe. It is cheap and readily available, making it an attractive choice for producers. However, its high content of erucic acids, requires a refining process to reduce their levels and ensure the quality of the biodiesel.
Sunflower oil: It has a high content of unsaturated acids, which makes biodiesel using it have a low viscosity temperature. However, this can lead to deposition problems in engines, which requires attention during its production.
Soybean oil: It has a high content of linolenic acids and good resistance to oxidation. However, it can cause problems with biodiesel filtration, which can be a challenge for producers.
Other oils: In addition to those mentioned above, there are a number of other oils such as palm oil, coconut oil, corn oil and linseed oil that can be used to produce biodiesel. Each has its own advantages and limitations, which must be taken into account when selecting a feedstock.

Interestingly, in addition to vegetable oils, animal fats such as pig fat and beef fat can also be used for biodiesel production. In addition to traditional vegetable oils and animal fats, there are a number of alternative feedstocks that can be used for biodiesel production. These innovative sources can offer new opportunities for the biofuel industry, while minimising negative environmental impacts.

Waste fats (UCO | Used Cooking Oil), such as waste from the food industry or fats from food production processes, are another potential feedstock for biodiesel production. Their use makes it possible to reduce waste and minimise negative environmental impacts. In addition, waste fats are usually cheap and readily available, which makes them an attractive feedstock for biodiesel producers. Nevertheless, they may contain impurities that require appropriate treatment before being used for fuel production.

Given the variety of available feedstocks, biodiesel production can be adapted to local conditions and resources. For example, in countries with high rapeseed production, the use of rapeseed oil may be the most cost-effective and ecologically sustainable. Conversely, in tropical countries where palm oil is available, its use may be more economically beneficial.

In addition, the development of biodiesel production technology, including refining and purification processes, can lead to improved fuel quality and reduced environmental impact. Investment in research into new feedstocks and production methods can also contribute to the further development of this green industry.

Choosing the Optimal Raw Material for Biodiesel Production

As a key part of a strategy to reduce greenhouse gas emissions and air pollution, biodiesel production requires a considered choice of raw material. The primary feedstock categories are vegetable oils, animal fats and other alternative sources such as algae oils, insect oils or waste fats. Below, I will discuss the factors that determine the choice of raw material and the characteristics of each type.

Availability: The availability of the raw material is a key factor in determining the choice. The raw material should be readily available in the region, which minimises the cost of obtaining and transporting it. For example, in countries with developed agriculture, vegetable oils such as rapeseed or sunflower may be the preferred choice.

Price: Another important factor is the price of the raw material. The choice should be based on the raw material with the lowest possible price in order to make biodiesel production profitable. Waste fats are often an attractive option due to the fact that they are cheap and readily available.

Properties: The properties of the raw material have a significant impact on the quality and technical performance of the biodiesel. For example, oils with a high content of unsaturated acids may be more susceptible to oxidation processes, which can affect the stability of the fuel. On the other hand, fats with a low content of unsaturated acids can cause filtering problems in biodiesel.

Environmental impact: The environmental aspect also plays an important role. The choice of raw material should take into account its environmental impact. The right raw material should have a low negative impact on the environment, minimising greenhouse gas emissions and negative effects on local ecosystems.

Certificates and permits

Biodiesel production in Poland is subject to strict regulations to ensure fuel quality and protect the environment. In order to start producing and selling biodiesel, it is necessary to obtain the relevant certificates and permits.

Certificates:

Certificate of origin of biodiesel: This is issued by the Polish Chamber of Biofuels and confirms that the biodiesel has been produced from renewable raw materials. This certificate provides transparency about the source of raw materials, promoting sustainable production.
Biodiesel Quality Certificate: Issued by an independent testing laboratory, it confirms that the biodiesel meets the quality standards set out in the legislation. This ensures that the fuel is safe for users and does not harm engines.

Permits:

Biofuel marketing permit: Is issued by the President of the Energy Regulatory Authority. Obtaining this permit is key to legally selling biodiesel on the market.
Integrated permit: Issued by the governor, it includes a permit for emissions into the air, the discharge of waste water into waters and the processing of waste. This integrated process allows the environmental impact of biodiesel production to be controlled.

In Europe, biodiesel production is also regulated by laws that are harmonised at European Union level. There are directives on fuel quality and the sustainable production of biofuels. The most significant directive in this context is the Renewable Energy Directive (RED II), which sets targets for the share of renewable biofuels in transport.

The requirements for obtaining certificates and permits can be quite stringent, which can be challenging for new producers. The need to meet quality standards and environmental requirements may require investment in advanced technologies and production processes. In addition, the need to provide a sustainable source of feedstock can be difficult, especially in the context of competition for agricultural land and concerns about negative environmental impacts.

In Europe, the introduction of biodiesel to the market may be hampered by differences in regulation between member states, which may lead to the need to comply with different standards and procedures. Nevertheless, harmonisation of regulations at EU level aims to facilitate trade and promote sustainable biofuel production across Europe.

Summary: Biofuel Production in the Context of a Sustainable Future

Certainly, Biodiesel is an important part of a strategy to reduce greenhouse gas emissions and other air pollutants, as its combustion in diesel engines generates significantly fewer harmful substances compared to traditional petroleum fuels. In addition, its production can contribute to the development of local economies by using local plant or animal raw materials.

The production of biofuels, including biodiesel, is an important step towards a sustainable energy future. Diversified feedstocks, regulations and the environmental aspect are key elements in this process. Despite challenges such as production costs and feedstock availability, innovation and technological development offer prospects for improved efficiency and sustainability in this industry. However, the implementation of biofuels requires a conscious approach, taking into account environmental, social and economic aspects, in order to contribute to the reduction of greenhouse gas emissions and the reduction of dependence on fossil fuels.

Unrefined oils in Europe: Analysis of the last six months

Strona główna / sunflower oil

Unrefined oils play a key role in both the food and energy industries. Over the past six months, the market for these crude oils in Poland and Europe has experienced uncertainty mainly related to the war in Ukraine and dynamic changes in demand for biodiesel and other products. Production and availability of crude technical oils may be limited due to restrictions in countries exporting these raw materials. This could lead to increased imports of crude vegetable oils from other continents to meet demand in the European market

Prices on an upward wave

Prices for sunflower oil, one of the main unrefined oils, have risen sharply over the past six months due to the war in Ukraine. The country is a major producer of sunflower oil, and supply disruptions from Ukraine have caused significant shortages of the commodity in Europe, contributing to a dramatic increase in prices. Canola oil prices also jumped, but to a lesser extent, mainly due to increased demand for biodiesel.

Uncertainty in supply

A sharp reduction in sunflower oil supplies from Ukraine has been a major factor disrupting the market. Shortages of the commodity in Europe have triggered a flurry of price increases. Supplies of other vegetable oils, such as rapeseed and soybean, have remained mostly stable, although some countries have imposed export restrictions, putting pressure on prices.

Dynamic demand trends

The increase in demand for biodiesel has been noticeable in the last six months, partly due to rising oil prices and climate commitments. Biodiesel production from rapeseed and sunflower oil responded to this increase, which further affected the unrefined oil market. However, demand for other uses of crude oils, such as food and cosmetics production, has remained relatively stable.

Production and trade

Biodiesel production has grown rapidly, responding to growing demand for the product. At the same time, production of other unrefined oils, such as edible oils and lubricants, remained relatively stable. Trade in unrefined oils in Europe has declined, primarily due to export restrictions. At the same time, imports of these oils into Europe have increased to meet shortages, especially in the case of sunflower oil. Dynamic changes in raw material prices have a significant impact on the biodiesel and ester market, generating reactions in the segments of production, demand and raw materials used.

Biodiesel

The increase in the price of unrefined oils, used in the production of biodiesel, directly translates into an increase in the cost of producing this biofuel. The increase in biodiesel prices of about 30% over the past six months reflects this trend. High biodiesel prices, in turn, are resulting in reduced demand, especially in the transportation sector, where the competitiveness of biodiesel compared to conventional fuels is becoming less.

To address this problem, biodiesel producers are increasingly turning to cheaper feedstocks such as animal fats and waste oils (UCO). This is an attempt to balance production costs and remain competitive in the market, however, it can lead to changes in product quality and features.

Esters

The increase in raw material prices adversely affects the production of esters, which are used, among other things. In the lubrication industry. The decline in ester production of about 10% in the last six months is a direct result of high raw material costs.

However, while ester production has declined, increased demand from the lubricant industry has partially offset the decline. The industry is not only continuing to use esters in its products, but is also looking for alternative sources of raw materials to meet its needs.

It is estimated that ester production will increase in the coming months if raw material prices fall. This is optimistic for the lubricant industry, which can expect greater availability and price stability for esters in the coming months.

The future of the unrefined oil market

The outlook for the unrefined oil market in the next six months brings with it a number of challenges and opportunities. High prices, mainly due to the ongoing war in Ukraine, and growing demand for biofuels such as biodiesel, will affect the stability of prices and supplies of raw materials.

Sunflower oil supplies from Ukraine are expected to remain limited, which could lead to further price increases. At the same time, biodiesel production may grow in response to strong demand as a result of both rising oil prices and climate targets.

Trade in unrefined oils in Europe may remain limited due to export restrictions imposed by some countries, which could lead to an increase in imports of unrefined oils to meet European market demand.

The value of the unrefined oil market in the coming months will depend on the dynamic interaction between supply, demand, raw material prices and trading conditions. In this uncertain situation, flexibility and adaptability will become key factors for companies operating in this sector.

Sunflower and rapeseed oil production has taken off!

Strona główna / sunflower oil

The long-awaited moment has arrived. After months of intensive preparation and hard work, production of bottled sunflower and rapeseed oil has started. This is certainly a milestone for the consortium of companies MBF Group SA and Chantii Oil Sp. z o.o.. We invite you to watch a video report from the production hall, where the joint work of machines and people is in full swing.

The final success and the launch of the production line is due to the hard work of the owners and specialists from Chantii Oil. Our joy is even greater when everyone can see the production line working at top speed. From now on, we can supply our customers with the best quality sunflower and rapeseed oil in elegant bottles, ready to be served on the table. This is not only a moment of joy for Chantia Oil and MBF Group, but also a significant step forward for the food industry. On a local level for now, but the ambitions are very high.

Sunflower and rapeseed oil have always occupied an important place in the human diet, due to their versatile uses and rich nutritional properties. Thanks to modern technology and the commitment of Chantia Oil’s employees, we are able to provide consumers with not only healthy but also tasty products to complement any dish.

We cannot forget the importance of this step for the consortium of companies MBF Group SA and Chantii Oil Ltd. Their joint efforts, investment in research and development and determination to achieve the goal have brought success. The production of bottled oil is only the beginning – it is the nucleus of future innovative ventures that will allow us to gain and maintain a significant position in the market and meet the expectations of our contractors.

We can’t wait to share our products with consumers and see their reactions. This is not only a source of personal and professional satisfaction for us, but also an inspiration to further improve our products and services. With the start of production of sunflower and rapeseed oil in bottles, we look to the future with optimism and confidence in our capabilities

We will report on all important and price-agnostic production and supply contracts via ESPI stock exchange reports.

Recording 1: Pouring oil into bottles.

Recording 2: Capping the oil bottles.

Recording 3: Tightening the caps on the bottles.

Recording 4: Wrapping the oil in bulk packaging.

Recording 5: Foiling of bottles stacked on a pallet.

Food oil packing plant – here we go

Strona główna / sunflower oil

In December 2023, MBF Group SA and Chantii Oil Sp. z o.o. signed an agreement to establish a consortium. The agreement stipulates that MBF Group SA will be the exclusive supplier of rapeseed and sunflower oil to Chantia Oil, which in turn will package and distribute the product on the Polish and foreign markets. The cooperation is aimed at establishing a joint plant to bottle canola oil and sunflower oil.

Located in Brodnica (Kujawsko-Pomorskie Voivodeship), the packaging plant has the potential to become one of the largest in Poland. The cooperation between MBF Group SA and Chantii Oil Sp. Ltd. gives both companies a chance for dynamic growth in the cooking oil industry. We will not be limited to one type of product. I plan to confection canola, sunflower and soybean oil.

Main stages of preparation:

Adaptation of the hall: includes construction of the necessary installations (ventilation, cooling, drainage), installation of production equipment (tanks, pumps, filling and labeling lines) and adaptation of the space for staff work.
Commissioning of equipment: calibration of equipment, production tests, development of sanitation procedures.

Information on plant preparation:

The plant will use the latest technology to ensure the high quality and safety of the oils produced.
The project also includes the construction of storage and administrative facilities.
Environmental standards are being followed during construction.
Cooking oils have a short shelf life, so strict sanitation procedures will be in place at the plant, including. HACCP and GHP system.

Preparing a production line for packaging cooking oils is a complex process that requires specialized knowledge and experience. Careful adherence to sanitary requirements and environmental protection are key to ensuring product safety and quality. In December 2023, work began on adapting the production hall to meet the needs of the new plant. According to the plan, the bottling plant for packaging cooking oils into bottles will be put into operation in the first quarter of 2024. It will be located in Brodnica, Kujawsko-Pomorskie Province.

The first stage is the adaptation of the production hall to meet the needs of the new plant. This includes:

Make the necessary installations, such as ventilation, cooling and drainage systems.
Install production equipment such as tanks, pumps, filling and labeling lines.
Adjust the space for staff work, including providing adequate storage space for raw materials and finished products.

Once the adaptation work is completed, the commissioning of production equipment should be carried out. This includes:

Perform calibration of equipment.
Conduct production tests to verify that the equipment is working properly.
Development of sanitation procedures

The plant is designed to use the latest technology to ensure high-quality production of cooking oils that meet the highest standards of safety and hygiene. The investment includes comprehensive planning and construction of production, storage and administrative facilities, taking into account the optimization of logistics and operational processes. In addition, environmental standards are followed during the construction of the plant, including the use of environmentally friendly technological solutions and the minimization of negative impacts on the surrounding nature. Through systematic reporting on the progress of construction, shareholders are kept informed of the stages of the project and the milestones achieved, which contributes to transparency of operations and building trust with the community and customers.

Cooking oils are a product with a short shelf life, so it is necessary to follow strict sanitation procedures. These procedures should include, but not be limited to:

System HACCP (Hazard Analysis and Critical Control Points), which identifies and controls food safety hazards.
GHP (Good Hygienic Practices) guidelines, which outline general hygiene principles for food processing plants.

Under the said agreement, MBF Group SA will supply the raw material for packaging, while Chantii Oil will be responsible for production and packaging. We will also handle sales and distribution of the finished product. The cooperation between MBF Group SA and Chantii Oil Sp. Ltd. will benefit both companies. For MBF Group SA, this will be an opportunity to increase revenues from the sale of cooking oils. The company will be able to use its wholesale experience to attract new customers in Poland and abroad. Chantii Oil Sp. Ltd. will also benefit from this cooperation. The company will have access to a stable source of raw material, allowing it to increase production and expand its operations.

Briefly summarizing the benefits for MBF Group SA, the following stand out:

Increase revenue. MBF Group SA will have the opportunity to increase revenues from the sale of rapeseed and sunflower oil.
Cost optimization. Cooperation with Chantii Oil Sp. z o.o. will allow MBF Group SA to optimize costs related to the production and distribution of cooking oils.
Expanding the sales market. Cooperation with Chantii Oil Sp. z o.o. will allow MBF Group SA to expand its market for cooking oils.

We invite our current and potential Shareholders to watch a report from the “construction site”. The landscape is changing for us every day – in the beginning there was a lot of heavy work outside – now the whole thing is already taking place inside the hall. Oil tanks with a total capacity of 180 MT (about 181,600 liters of oil) are ready. In a few days, a complete production line for packaging, which was purchased late last year, will arrive. After complete installation, we will conduct and document for you in the form of photos and videos the course of the tests. We also expect to receive key certifications soon: from Sanepid and HACCP. As these are key news, we will report on them with ESPI current reports.

Update: March 1, 2024

Filling of 5-liter bottles

Filling 1-liter bottles

Filled 5-liter bottles in bulk packaging

Filled 1-liter bottles in bulk packaging

Update: February 16, 2024

Connecting tanks and welding connections

Embedding of sewage tanks

Preparation of sewage tanks

Holes for sewage tanks

Construction of isolation and separation corridors and chambers

Isolation and separation chambers – external view

Entrance to the plant – view from inside

Construction of isolation and separation corridors and chambers

Entrance to the site

Construction of corridors and chambers – the framework of the structure

Administration and order processing building

Production hall with packaging machinery

First cooking oil tank

Skeleton of the second cooking oil tank

A small section of the complex technological design of the production hall

Letter of Intent on exclusive supply of cooking oils

Strona główna / sunflower oil

We would like to inform all interested parties that a letter of intent has been signed with a Polish company based in Brodnica, specializing in the production, filling, packaging and sale of rapeseed and sunflower oil. As part of this agreement, the two companies are considering finalizing a long-term agreement that would make MBF Group SA the exclusive supplier of rapeseed and sunflower oil to the said company.

The contractor with whom the aforementioned Letter was signed has ready infrastructure for filling, packaging and labeling rapeseed and cooking oil in 1-, 3- and 5-liter bottles. The contractor has a modern production line that ensures the high quality of its products. It is currently in the process of implementing a Quality Management System standard – the HCCP system to ensure good manufacturing and hygiene practices.

We are currently negotiating and considering the possibility of finalizing a full contract that will make us the sole supplier of raw materials – refined rapeseed oil and refined sunflower oil – to this company. Below are the main advantages and prospects of this cooperation, as well as potential risks.

The cooperation between MBF Group SA and the aforementioned company carries a number of significant advantages and prospects:

Exclusive market position: Finalizing the agreement will allow MBF Group SA to gain a unique position in the market as the sole supplier of rapeseed and sunflower oil to this renowned company. This unique position can enhance a company’s image and increase its visibility in the market.
Stable source of revenue: The production and supply process of rapeseed oil and sunflower oil is complex, suggesting long-term cooperation and a stable source of revenue for MBF Group SA.
Potential for product portfolio development: The collaboration opens the door to expanding product offerings, including related products and storage and distribution services. This can contribute to the company’s revenue.
Increase in turnover: The finalization of the agreement will help increase MBF Group SA’s turnover, which will translate into revenue growth in the long term. As an exclusive oil supplier, the company can expect steady and reliable revenues.
Growth and expansion: Working with a reputable partner opens up new prospects for growth and expansion in the market. This can attract the attention of other customers and potential partners, which will affect the further development of the company.
Synergy and optimization: long-term cooperation will enable both companies to jointly optimize costs and processes, which will contribute to increased competitiveness and operational efficiency.

In summary – signing a contract with a company specializing in rapeseed and sunflower oil offers the possibility of numerous benefits, including a unique market position, a stable source of revenue, increased turnover and the opportunity for growth. This is a step that has the potential to significantly affect the future of MBF Group SA, creating new opportunities and strengthening our position in the market.

At the same time, the Company’s Management Board notes that as the process of production and supply of rapeseed oil and sunflower oil is complex, this may suggest long-term cooperation and a stable source of revenue for the Issuer. The cooperation will enable the two companies to jointly optimize costs and processes, which will contribute to increased competitiveness and operational efficiency.

Potential threats and risks:

Dependence on a single customer: In the event that MBF Group SA became the sole supplier of oil to the said company, the company would be at greater risk if this cooperation were to be discontinued.
Contract negotiations: The process of negotiating and finalizing a contract can be complicated, and both parties need to carefully define the terms of cooperation and ensure that their interests are safeguarded.
Market risk: The rapeseed and sunflower oil market is susceptible to changes in raw material prices and demand on the world market, which may affect the stability and profitability of the cooperation.

MBF Group SA is aware of these issues and will seek to minimize risks through careful planning and management of the relationship with the partner. Nevertheless, it is important to remember that no cooperation is risk-free, and both parties should carefully consider and discuss all aspects of the cooperation before finalizing the contract.

Regardless of the final outcome of the talks and negotiations, the Issuer will report on the outcome in a Current ESPI Report. In the case of a positive decision, according to the Contractor’s declarations, cooperation and trade will begin, without undue delay, but not earlier than January 2024.

Anticipated market trends

Availability of raw material

Prices and their volatility

Macroeconomic factors

Key factors affecting supply

Price trends (predictions and forecasts)

Range of changes in sunflower oil prices

Key oil production forecasts

Portfolio kontrahentów i partnerów biznesowych

The production process for refined rapeseed oil involves several steps:

The largest producers of refined rapeseed oil on each continent are:

Europe

Asia

North America

South America

Australia and Oceania

Africa

Refined rapeseed oil price forecast for the second half of 2024

Applications of unrefined technical oils:

Examples of types of unrefined technical oils:

Technical rapeseed oil

Technical linseed oil

Technical sunflower oil

Technical soybean oil

Technical corn oil

Vegetable oil production in 2023 and 2024:

The future of vegetable oil production and use:

Environmental impact:

Sustainable sourcing and use:

Biodiesel production

The main raw materials for biodiesel production are vegetable oils.

Choosing the Optimal Raw Material for Biodiesel Production

Certificates and permits

Summary: Biofuel Production in the Context of a Sustainable Future