Demand for oil and fat products under quarantine will decrease - 20.03.2020

Demand for oil and fat products under quarantine will decrease - 20.03.2020
Demand for some categories of the oil-fat market will grow, for some - to fall. However, of course, the forecast and expectations are rather negative.
This opinion was expressed by Yuri Golyanich, Delta Wilmar CIS CEO, in
“At the moment I can’t say that we felt an immediate deterioration of the situation. But we expect a change in demand. Because, in fact, there was an overlay of one crisis on another: economic, quarantine and restrictive measures. And it is not known for what period this will be delayed, ”Yuri Golyanich emphasized.
According to him, the company does not yet feel a decrease in demand for the main Delta Wilmar CIS product group - oil and fat products. But at the same time, they understand that, most likely, due to the closure of catering outlets, the consumption of vegetable oil and fats will decrease.
“Perhaps the consumption of these products is offset by households, given that many people work remotely. But overall there will be some consumer pessimism. People will spend less and consume less, ”the company’s CEO said.
As for changes in the prices of fat products, then, in his opinion, everything will depend on demand and the exchange rate. So, if demand falls, this will push manufacturers to price flexibility.
“But, on the other hand, the cost of some raw materials affects the cost of certain fats, which will depend on the exchange rate,” concluded Yuri Golyanich.
Recall that export quotes for crude sunflower oil from Ukraine dropped to an annual minimum amid panic in the market and lack of demand.