Required Report - public distribution

**Date:** 5/15/2005

**GAIN Report Number:** RS5042

RS5042

**Russian Federation**

**Oilseeds and Products**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)Randall Hager

American Embassy, Moscow

**Prepared by:**

Yelena Vassilieva and Dorothy Adams

**Report Highlights:**

The Russian oilseed industry has nearly reached optimal capacity and
according to experts, further developments of this industry will be
based on the consolidation of assets and production at existing large
enterprises, rather than on new firms entering the market. Domestic
production of oilseeds is still lagging behind processing and total
production in MY 2005 is forecast at 5.5 million metric tons (mmt), two
percent lower than in MY 2004. Imports of vegetable oil will continue in
the foreseeable future, although these imports slowed down in MY 2004
due to two consecutive large crops. Domestic production of meal will
increase, while production of oil will decrease slightly.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Moscow \[RS1\]

\[RS\]

Table of Contents

[**Total Oilseeds 4**](#total-oilseeds)

[Production 5](#production)

[Table 2. Oilseeds: Sown Area, Production, Yields, 1995-2003
6](#table-2.-oilseeds-sown-area-production-yields-1995-2003)

[Consumption 6](#consumption)

[Trade 7](#trade)

[Stocks 8](#stocks)

[Marketing 8](#marketing)

[Policy 8](#policy)

[Sunflowerseed 8](#sunflowerseed)

[Table 3. PSD, Sunflowerseed, 1,000 Metric Tons, 1,000 Hectares
9](#table-3.-psd-sunflowerseed-1000-metric-tons-1000-hectares)

[Table 4. Sunflowerseed: Area, Yields, and Production by Regions
10](#table-4.-sunflowerseed-area-yields-and-production-by-regions)

[Table 5. Export Trade Matrix, Sunflowerseed, 1,000 Metric Tons
11](#table-5.-export-trade-matrix-sunflowerseed-1000-metric-tons)

[Soybeans 11](#soybeans)

[Table 6. PSD, Soybeans, 1,000 Metric Tons, 1,000 Hectares
12](#table-6.-psd-soybeans-1000-metric-tons-1000-hectares)

[Table 7. Soybeans: Area, and Production by Regions
13](#table-7.-soybeans-area-and-production-by-regions)

[Rapeseed 14](#rapeseed)

[Table 8. PSD, Rapeseed, 1,000 Metric Tons, 1,000 Hectares
14](#table-8.-psd-rapeseed-1000-metric-tons-1000-hectares)

[Table 10. Export Trade Matrix, 1,000 Metric Tons.
15](#table-10.-export-trade-matrix-1000-metric-tons.)

[Peanuts 15](#peanuts)

[Other Oilseed Crops 15](#other-oilseed-crops)

[Total Meal 15](#total-meal)

[Production 16](#production-1)

[Table 9. Consolidated PSD for Major Oil Meals and Fish Meal, 1,000
Metric Tons
16](#table-9.-consolidated-psd-for-major-oil-meals-and-fish-meal-1000-metric-tons)

[Consumption 16](#consumption-1)

[Trade 17](#trade-1)

[Stocks 17](#stocks-1)

[Oilseed Meal Tables 17](#oilseed-meal-tables)

[Sunflowerseed Meal 17](#sunflowerseed-meal)

[Table 10. PSD, Sunflowerseed Meal, 1,000 Metric Tons
17](#table-10.-psd-sunflowerseed-meal-1000-metric-tons)

[Table 11. Export Trade Matrix, Sunflowerseed Meal, 1,000 Metric Tons
18](#table-11.-export-trade-matrix-sunflowerseed-meal-1000-metric-tons)

[Soybean Meal 19](#soybean-meal)

[Table 12. PSD, Soybean Meal, 1,000 Metric Tons
19](#table-12.-psd-soybean-meal-1000-metric-tons)

[Table 13. Import Trade Matrix, Soybean Meal, 1,000 Metric Tons
20](#table-13.-import-trade-matrix-soybean-meal-1000-metric-tons)

[Rapeseed Meal 21](#rapeseed-meal)

[Table 14. PSD Rapeseed Meal, 1,000 Metric Tons
21](#table-14.-psd-rapeseed-meal-1000-metric-tons)

[Fish Meal 22](#fish-meal)

[Table 15. PSD, Fish Meal, 1,000 Metric Tons
22](#table-15.-psd-fish-meal-1000-metric-tons)

[Total Oils 23](#total-oils)

[Table 16. PSD, Total Vegetable Oils, 1,000 Metric Tons
23](#table-16.-psd-total-vegetable-oils-1000-metric-tons)

[Table 17. Supply of Vegetable Oils, 1998-2003, 1,000 Metric Tons
24](#table-17.-supply-of-vegetable-oils-1998-2003-1000-metric-tons)

[Production 24](#production-2)

[Table 18. Vegetable Oil Production in Russia, 1,000 Metric Tons
24](#table-18.-vegetable-oil-production-in-russia-1000-metric-tons)

[Consumption 25](#consumption-2)

[Table 19. Production of Vegetable Oil Food Products in Russia, 1,000
Metric Tons
26](#table-19.-production-of-vegetable-oil-food-products-in-russia-1000-metric-tons)

[Margarine 26](#margarine-1)

[Mayonnaise 27](#mayonnaise-1)

[Bottled Vegetable Oil 27](#bottled-vegetable-oil)

[Trade 27](#trade-2)

[Stocks 27](#stocks-2)

[Policy 27](#policy-1)

[Table 20. Import Tariffs on Vegetable Oil and Vegetable Oil Products
28](#table-20.-import-tariffs-on-vegetable-oil-and-vegetable-oil-products)

[Marketing 29](#marketing-1)

[Vegetable Oil Tables 30](#vegetable-oil-tables)

[Sunflowerseed Oil 30](#sunflowerseed-oil)

[Table 21. PSD, Sunflowersed Oil, 1,000 Metric Tons
30](#table-21.-psd-sunflowersed-oil-1000-metric-tons)

[Table 22. Export Trade Matrix, Sunflowerseed Oil, 1,000 Metric Tons
31](#table-22.-export-trade-matrix-sunflowerseed-oil-1000-metric-tons)

[Table 23. Import Trade Matrix, Sunflowerseed Oil, 1,000 Metric Tons
31](#table-23.-import-trade-matrix-sunflowerseed-oil-1000-metric-tons)

[Soybean Oil 32](#soybean-oil)

[Table 24. PSD, Soybean Oil, 1,000 Metric Tons
32](#table-24.-psd-soybean-oil-1000-metric-tons)

[Table 25. Import Trade Matrix, Soybean Oil, 1,000 Metric Tons
33](#table-25.-import-trade-matrix-soybean-oil-1000-metric-tons)

[Rapeseed Oil 34](#rapeseed-oil)

[Table 26. PSD, Rapeseed Oil, 1,000 Metric Tons
34](#table-26.-psd-rapeseed-oil-1000-metric-tons)

[Palm Oil 35](#palm-oil)

[Table 27. PSD, Palm Oil, 1,000 Metric Tons
35](#table-27.-psd-palm-oil-1000-metric-tons)

[Table 28. Import Trade Matrix, Palm Oil, 1,000 Metric Tons
36](#table-28.-import-trade-matrix-palm-oil-1000-metric-tons)

# Total Oilseeds

It is unlikely that summer and fall weather in 2005 will be favorable
for oilseed production for the third year in a row. An optimistic 5.5
mmt forecast for the three main crops (sunflowerseeds, soybeans, and
rapeseeds) is based, first of all, on the continuing improvements in
technology and increasing yields in the Southern Federal Districts while
the planted area will remain the same as last year. In the Southern
Federal District, the area sown to sunflowerseeds (still the main
oilseed crop) is forecast to decrease due to efforts to restore the soil
fertility and return to optimal crop rotation practices. However, the
area planted to soybeans and rapeseeds in this district is forecast to
increase. Total oilseeds production in MY 2004 reached a historic high
level of 5.7 mmt mostly due to favorable weather conditions, higher
yields, and a lower area planted to lower-yielding oilseeds such as
mustard.

Present low grain prices and a late spring will stimulate farmers to
plant more sunflowerseeds and, wherever possible, soybeans and rapeseed.
However, the expansion of sunflowerseed cultivation is more likely for
farmers that report low yields, while on farms with better agronomic
practices, an increase in production is expected due to the use of
better seeds, application of fertilizer, and use of modern plant
protection chemicals. Although the use of better technologies and
application of more fertilizer allows farmers to plant sunflowerseeds in
shorter intervals than the 6-7 years norm, many advanced farmers keep
using traditional practices.

Imports of oilseeds will remain low and limited to border trade, until
GMO registration and labeling issues of are resolved. If this happens,
then imports of soybeans may increase significantly to meet the growing
demand for domestically produced high-protein food ingredients, feeds,
and vegetable oil.

Exports of oilseeds will continue to decrease, due primarily to high
demand from domestic crushers who switched to exports of processed
products. A continued twenty percent export duty on sunflowerseeds also
limits exports of oilseeds.

Crush domestic consumption has increased by fifteen percent in MY 2004,
nearly reaching the optimal (according to experts' estimates) level of
5.2 mmt and will remain around that level for the next year. Expansion
and modernization of the food industry will lead to a decrease in direct
food consumption of sunflowerseed and lower waste.

**Table 1. Consolidated PSD for Major Oilseeds (Sunflowerseed, Soybeans,
Rapeseed), 1,000 Hectares, 1,000 Metric Tons**

  ------------------------------------- ----------- ---------- -----------
  Beg. Month/Year of Marketing Year:    10/03       10/04      10/05

                                        Revised     Prelim.    Forecast

  Area Planted                          5,666       5,679      5,670

  Area Harvested                        5,448       5,512      5,440

  Beginning Stocks                      46          91         106

  Production                            5,435       5,631      5,490

  MY Imports                            10          30         30

  MY Imports from U.S.                  0           0          0

  MY Imports from the EC                0           0          0

  TOTAL SUPPLY                          5,491       5,752      5,626

  MY Exports                            370         110        95

  MY Exports to the EC                  250         10         10

  Crush Dom. Consumption                4,503       5,175      5,135

  Food Use Dom. Consump.                270         200        200

  Feed, Seed, Waste Dm.Cn.              257         161        150

  TOTAL Dom.Consumption                 5,030       5,536      5,485

  Ending Stocks                         91          106        46

  TOTAL DISTRIBUTION                    5,491       5,752      5,626
  ------------------------------------- ----------- ---------- -----------

Source: Prepared by Post based on PSD tables for each crop.

## Production

Total oilseed output depends mostly on sown area and weather, although
agronomic practices have improved in regions with more favorable climate
and soil conditions. In 2003 and 2004, the area planted to soybeans and
rapeseeds increased and the total share of these crops in total
production also increased (in 2003 soybeans production was low due to
huge weather-related crop losses in the Far East). Table 2 summarizes
planted area, production, and yields of various oilseeds from 1995 to
2004. Official data on planted area may not correlate with official USDA
PSD data.

### Table 2. Oilseeds: Sown Area, Production, Yields, 1995-2003

<table>
<colgroup>
<col style="width: 14%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="11">Sown Area, 1,000 hectares</td>
</tr>
<tr class="even">
<td>Crop</td>
<td>1995</td>
<td>1996</td>
<td>1997</td>
<td>1998</td>
<td>1999</td>
<td>2000</td>
<td>2001</td>
<td>2002</td>
<td>2003</td>
<td><p>2004</p>
<p>prelim.</p></td>
</tr>
<tr class="odd">
<td>Sunflower</td>
<td>4,127</td>
<td>3,874</td>
<td>3,588</td>
<td>4,168</td>
<td>5,585</td>
<td>4,629</td>
<td>3,821</td>
<td>4,117</td>
<td>5,337</td>
<td>4,848</td>
</tr>
<tr class="even">
<td>Soybean</td>
<td>487</td>
<td>485</td>
<td>404</td>
<td>453</td>
<td>439</td>
<td>421</td>
<td>417</td>
<td>476</td>
<td>586</td>
<td>571</td>
</tr>
<tr class="odd">
<td>Rapeseed</td>
<td>276</td>
<td>167</td>
<td>139</td>
<td>198</td>
<td>246</td>
<td>232</td>
<td>134</td>
<td>145</td>
<td>230</td>
<td>251</td>
</tr>
<tr class="even">
<td>Mustard</td>
<td>246</td>
<td>189</td>
<td>139</td>
<td>127</td>
<td>140</td>
<td>162</td>
<td>59</td>
<td>80</td>
<td>142</td>
<td>103</td>
</tr>
<tr class="odd">
<td>Flax</td>
<td>5</td>
<td>8</td>
<td>4</td>
<td>8</td>
<td>16</td>
<td>22</td>
<td>14</td>
<td>12</td>
<td>14</td>
<td>13</td>
</tr>
<tr class="even">
<td>Other</td>
<td>7</td>
<td>27</td>
<td>4</td>
<td>4</td>
<td>8</td>
<td>19</td>
<td>3</td>
<td>8</td>
<td>28</td>
<td>27</td>
</tr>
<tr class="odd">
<td>TOTAL</td>
<td>5,148</td>
<td>4,750</td>
<td>4,278</td>
<td>4,958</td>
<td>6,434</td>
<td>5,485</td>
<td>4,448</td>
<td>4,838</td>
<td>6,337</td>
<td>5,813</td>
</tr>
<tr class="even">
<td colspan="11">Yields, Metric Tons per Planted Hectare</td>
</tr>
<tr class="odd">
<td>Crop</td>
<td>1995</td>
<td>1996</td>
<td>1997</td>
<td>1998</td>
<td>1999</td>
<td>2000</td>
<td>2001</td>
<td>2002</td>
<td>2003</td>
<td><p>2004</p>
<p>prelim.</p></td>
</tr>
<tr class="even">
<td>Sunflower</td>
<td>1.02</td>
<td>0.71</td>
<td>0.79</td>
<td>0.72</td>
<td>0.74</td>
<td>0.85</td>
<td>0.70</td>
<td>0.89</td>
<td>0.91</td>
<td>0.99</td>
</tr>
<tr class="odd">
<td>Soybean</td>
<td>0.60</td>
<td>0.58</td>
<td>0.69</td>
<td>0.66</td>
<td>0.76</td>
<td>0.81</td>
<td>0.84</td>
<td>0.89</td>
<td>0.67</td>
<td>0.97</td>
</tr>
<tr class="even">
<td>Rapeseed</td>
<td>0.45</td>
<td>0.66</td>
<td>0.51</td>
<td>0.63</td>
<td>0.55</td>
<td>0.64</td>
<td>0.84</td>
<td>0.79</td>
<td>0.83</td>
<td>1.10</td>
</tr>
<tr class="odd">
<td>Mustard</td>
<td>0.02</td>
<td>0.02</td>
<td>0.04</td>
<td>0.06</td>
<td>0.31</td>
<td>0.28</td>
<td>0.47</td>
<td>0.44</td>
<td>0.61</td>
<td>0.53</td>
</tr>
<tr class="even">
<td>Flax</td>
<td>0.80</td>
<td>1.00</td>
<td>0.75</td>
<td>0.63</td>
<td>0.56</td>
<td>0.64</td>
<td>0.57</td>
<td>0.67</td>
<td>0.61</td>
<td>0.77</td>
</tr>
<tr class="odd">
<td>Other</td>
<td>0.29</td>
<td>(0.04)</td>
<td>0.25</td>
<td>0.25</td>
<td>0.38</td>
<td>1.05</td>
<td>0.47</td>
<td>0.65</td>
<td>0.51</td>
<td>0.74</td>
</tr>
<tr class="even">
<td>TOTAL</td>
<td>0.90</td>
<td>0.67</td>
<td>0.75</td>
<td>0.69</td>
<td>0.73</td>
<td>0.82</td>
<td>0.72</td>
<td>0.88</td>
<td>0.88</td>
<td>0.98</td>
</tr>
<tr class="odd">
<td colspan="11">Production, 1,000 Metric Tons</td>
</tr>
<tr class="even">
<td>Crop</td>
<td>1995</td>
<td>1996</td>
<td>1997</td>
<td>1998</td>
<td>1999</td>
<td>2000</td>
<td>2001</td>
<td>2002</td>
<td>2003</td>
<td><p>2004</p>
<p>prelim.</p></td>
</tr>
<tr class="odd">
<td>Sunflower</td>
<td>4,200</td>
<td>2,765</td>
<td>2,831</td>
<td>3,000</td>
<td>4,150</td>
<td>3,915</td>
<td>2,685</td>
<td>3,684</td>
<td>4,871</td>
<td>4,801</td>
</tr>
<tr class="even">
<td>Soybean</td>
<td>290</td>
<td>282</td>
<td>280</td>
<td>297</td>
<td>334</td>
<td>342</td>
<td>350</td>
<td>423</td>
<td>393</td>
<td>555</td>
</tr>
<tr class="odd">
<td>Rapeseed</td>
<td>123</td>
<td>110</td>
<td>71</td>
<td>125</td>
<td>135</td>
<td>148</td>
<td>113</td>
<td>115</td>
<td>192</td>
<td>276</td>
</tr>
<tr class="even">
<td>Mustard</td>
<td>5</td>
<td>4</td>
<td>6</td>
<td>7</td>
<td>43</td>
<td>46</td>
<td>28</td>
<td>35</td>
<td>86</td>
<td>55</td>
</tr>
<tr class="odd">
<td>Flax</td>
<td>4</td>
<td>8</td>
<td>3</td>
<td>5</td>
<td>9</td>
<td>14</td>
<td>8</td>
<td>8</td>
<td>9</td>
<td>10</td>
</tr>
<tr class="even">
<td>Other</td>
<td>2</td>
<td>(1)</td>
<td>1</td>
<td>1</td>
<td>3</td>
<td>20</td>
<td>1</td>
<td>5</td>
<td>14</td>
<td>20</td>
</tr>
<tr class="odd">
<td>TOTAL</td>
<td>4,624</td>
<td>3,168</td>
<td>3,192</td>
<td>3,435</td>
<td>4,674</td>
<td>4,485</td>
<td>3,185</td>
<td>4,271</td>
<td>5,565</td>
<td>5,717</td>
</tr>
</tbody>
</table>

Source: Federal Service of State Statistics (former State Statistical
Committee) data and "AgroKhleb Bulletin" (SovEcon publication).

Note: Flax numbers for 2004 are Post's estimate

## Consumption

Russia's oilseed consumption increased rapidly during the last two years
due to investments by large agricultural holding companies in
construction of new crushing plants and new or modernized vegetable oil
processing facilities. Some sources report total crushing capacity has
already reached 6.5-6.6 mmt, including six mmt in large plants and about
0.6 of small extrusion presses located on farms. These small extrusion
presses will survive for some time, but their role in commercial
production is plummeting. On farms that produce sunflowerseeds and have
dairy operations, these presses will survive for a longer time, but
growing demand for oilseeds from big industrial crushers will push these
on-farm processors out of the market. Some experts estimate that almost
sixty percent of industrial crushing plants are still medium and small
operations that in the future will not be able to compete with crushing
giants and will be squeezed out.

Actual crushing of oilseeds is lagging behind capacity and in MY 2004
crush domestic consumption was estimated at 5.2 mmt, less than eighty
percent of total capacity. This is considered normal for flexibility in
crushing, but smaller plants usually cannot compete with bigger ones
when purchasing raw materials. In MY 2004, many of the former used much
less than eighty percent of their capacity and incurred substantial
losses. Moreover, in MY 2004, the price of sunflowerseeds was the
highest shortly after harvest and many small and middle size processors
which purchased sunflowerseeds during this time will not now be able to
compensate by selling vegetable oil, the price of which has decreased
over the last few months. The MY 2005 forecast for crush domestic
consumption is decreased slightly due to lower domestic production,
although experts estimate that crushing capacity at big industrial
plants will continue to increase. MY 2005 will likely see more
consolidation of property and production at the biggest crushing plants
and companies, without a significant increase in overall demand for
oilseeds, especially sunflowerseeds, and with approximately the same
level of vegetable oil and meal production.

The growing investment of domestic and international oil companies into
the industry are said to be driven by growing consumer demand for
oilseed products, both vegetable oil and processed products derived from
vegetable oil. Demand for protein feed has not yet become a driving
force for increasing oilseed crushing due to the low rate of development
of the poultry industry and the continuing slow down of the domestic
livestock industry. Some experts think demand for protein feed will lag
behind the development of the livestock and poultry industries due to
the abundance of cheap feed quality wheat. Considering this, the larger
crushers have begun investigating foreign markets for sunflowerseeds
meal and cake, and exports of meal increased.

Direct food use domestic consumption (primarily sunflowerseeds)
decreased in MY 2004 and will not exceed 200,000 metric tons in MY 2005.
Direct feed, seed, and waste domestic consumption will decrease because
of lower direct feeding and significantly decreased waste, while use of
seeds will remain at the same level, although the quality will improve
(See GAIN report RS5011).

## Trade

Oilseed imports of are forecast to remain at 30,000 metric tons, unless
there is a resolution of some remaining phytosanitary and GMO issues.
Procedures for registration of GMO soybeans for feeding, which caused
some optimistic soybean import forecasts last year, were disrupted in
the course of administrative reform and have not yet been reestablished.
Consolidation of the phytosanitary and quality certification under
Federal Service for Veterinary and Phytosanitary Surveillance (VPSS),
which has not yet developed regional structure and policies, will be the
main restriction on imports of oilseeds and the main hindrance in the
development of the domestic poultry, pig, and dairy industries.

Given high domestic demand for oilseeds, exports are forecast to drop to
95,000 metric tons and the share of soybeans and rapeseeds will increase
due to established connections of traders with China and some EU
countries. A continued twenty percent export duty on sunflowerseeds will
also limit exports.

## Stocks

Ending stocks will decrease to 46,000 metric tons from an estimated
106,000 metric tons in MY 2004. The stocks are held mostly at processing
facilities that are not interested in keeping high levels of stocks
through the end of the marketing year, instead using the time to clean
their storage areas.

## Marketing

The Federal Statistical Service does not collect data on oilseeds
marketing on an annual basis, but along with the increasing share and
role of big crushing plants, the share of direct sales is increasing.
Although big crushers decreased the use of direct pre-payment of crop at
farms, due to severe losses these companies experienced in 1998 and the
lack of legal instruments to get pre-paid crop from the producers,
traditional links and contacts between farmers and crushers play a very
significant role and share of farmer-crusher direct sales continue to
increase. Some crushers have leasing agreements with farmers and produce
the growing portion of oilseeds crop on the leased land.

## Policy

Import tariffs on sunflowerseeds, rapeseeds, and other oilseeds remain
five percent of the customs value. The only exception is import tariffs
on soybeans (HS numbers 1201 00 100 0 and 1201 00 900 0), which have
been lifted through October 25, 2004, and then, again, were lifted for
an unlimited period in April 2005 (please see GAIN report RS5027). Fish
meal (HS number 2301 20) and soybean meal for feeding (HS number 2304 00
001) are also imported duty free. Duty-free imports of soybeans will
decrease the price of soybeans, but will not be the dominant stimuli to
import soybeans, because actual imports of soybeans are restricted by
non-transparent phytosanitary requirements and unsettled GMO
registration procedures.

Import tariffs on vegetable oils vary depending on the type of oil and
are provided in the oils section of this report.

The Ministry of Agriculture's declared intention to increase domestic
production of poultry and swine will not actually stimulate imports of
high protein feed until the transparent procedures of quality
certification, phytosanitary control and GMO registration are
established by the Russian Federal Service for Veterinary and
Phytosanitary Surveillance.

## Sunflowerseed

The area sown to sunflowerseeds is forecast at last year's level of 4.86
million hectares. The production forecast is 4.75 mmt, based on the
assumption that average yields will be lower than last year due to less
favorable weather and an increase in the area sown to sunflowerseeds on
small private farms. Private farmers with limited acreage will again
plant sunflowerseeds instead of early spring grains due to a late
spring. Sunflowerseed harvested area is calculated as production divided
by yield per harvested hectare and this average yield in 2004 was 1.02
metric tons per hectare. In the main producing area (Southern Federal
District, Southern Volga Valley Federal District, and Southern Central
Federal District), yields varied from 1.7 tons per hectare in Krasnodar
kray to 0.8 tons per hectare in Samara oblast. Expansion of the area
planted in these regions has been fueled by the use of better quality
seeds and improved technology to increase yields. In 2004, private
farmers planted almost 1.36 million hectares, almost 28 percent of the
total planted area, and their share in MY 2005 will increase due to
delayed planting.

### Table 3. PSD, Sunflowerseed, 1,000 Metric Tons, 1,000 Hectares

  --------------------- ----------------- ---------- ---------- ---------- ---------- ----------
  **PSD Table**                                                                       

  **Country**           **Russian                                                     
                        Federation**                                                  

  **Commodity**         **Oilseed,                                         (1000      
                        Sunflowerseed**                                    HA)(1000   
                                                                           MT)        

                        2003              Revised    2004       Estimate   2005       Forecast

                        USDA Official     Post       USDA       Post       USDA       Post
                        \[Old\]           Estimate   Official   Estimate   Official   Estimate
                                          \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  **Market Year Begin**                   10/2003               10/2004               10/2005

  Area Planted          4850              4850       4800       4858       0          4860

  Area Harvested        4850              4850       4650       4707       0          4710

  Beginning Stocks      25                25         70         70         60         60

  Production            4850              4850       4750       4800       0          4750

  MY Imports            5                 5          10         10         0          10

  MY Imp. from U.S.     0                 0          0          0          0          0

  MY Imp. from the EC   0                 0          0          0          0          0

  TOTAL SUPPLY          4880              4880       4830       4880       60         4820

  MY Exports            310               310        200        40         0          30

  MY Exp. to the EC     250               250        100        10         0          10

  Crush Dom.            4000              4000       4250       4450       0          4450
  Consumption                                                                         

  Food Use Dom.         270               270        200        200        0          200
  Consump.                                                                            

  Feed,Seed,Waste       230               230        120        130        0          120
  Dm.Cn.                                                                              

  TOTAL Dom.            4500              4500       4570       4780       0          4770
  Consumption                                                                         

  Ending Stocks         70                70         60         60         0          20

  TOTAL DISTRIBUTION    4880              4880       4830       4880       0          4820
  --------------------- ----------------- ---------- ---------- ---------- ---------- ----------

Source: Federal State Statistical Service data

### Table 4. Sunflowerseed: Area, Yields, and Production by Regions

  ------------- ----------- ------- ------- ------- ------- ------- ------- -----------
                1986-1990   1998    1999    2000    2001    2002    2003    2004
                                                                            (prelim.)

  PLANTED AREA,                                                             
  thousand                                                                  
  hectares                                                                  

  Russia        2,446       4,167   5,585   4,627   3,821   4,117   5,327   4,848

  Voronezh      206         313     360     347     325     349     431     403

  Volgograd     199         453     598     461     412     447     642     532

  Saratov       313         396     531     484     431     448     536     445

  Krasnodar     300         458     472     400     352     424     567     475

  Stavropol     181         313     447     447     207     223     280     247

  Rostov        429         809     1,021   1,019   794     809     1,086   1,024

  Orenburg      143         254     436     256     221     241     265     265

  Altay         114         266     360     320     188     236     336     338

  Other         561         905     1,360   893     891     940     1,184   1,119

  YIELD, mt per                                                             
  1 hectare of                                                              
  harvested                                                                 
  area                                                                      

  Russia        0.82        0.72    0.75    0.85    0.78    0.97    0.10    1.02

  Voronezh      0.57        0.94    1.11    1.04    0.91    1.07    1.21    1.01

  Volgograd     0.51        0.51    0.67    0.74    0.60    0.81    0.88    0.92

  Saratov       0.37        0.44    0.67    0.54    0.50    0.56    0.72    0.89

  Krasnodar     1.60        1.24    1.30    1.55    1.37    1.77    1.49    1.76

  Stavropol     1.11        0.88    0.50    0.66    0.95    1.15    0.98    1.37

  Rostov        1.05        0.75    0.85    0.99    0.87    1.19    1.22    1.17

  Orenburg      0.45        0.42    0.46    0.71    0.49    0.56    0.74    0.70

  Altay kray    0.48        0.31    0.35    0.47    0.56    0.51    0.54    0.38

  Other         0.71        0.71    0.70    0.99    0.64    0.72    0.74    NA(1.90)

  PRODUCTION,                                                               
  thousand                                                                  
  metric tons                                                               

  Russia        2,553       3,000   4,150   3,911   2,685   3,684   4,868   4,801

  Voronezh      140         295     399     359     287     353     492     396

  Volgograd     148         233     396     341     209     309     492     480

  Saratov       112         173     356     259     207     241     378     395

  Krasnodar     654         571     613     622     469     732     798     822

  Stavropol     263         278     225     225     151     249     265     331

  Rostov        665         609     870     888     579     882     1,193   1,187

  Orenburg      79          114     202     184     104     126     195     220

  Altay         99          82      126     152     101     114     157     121

  Other         393         644     963     881     578     678     898     1,919
  ------------- ----------- ------- ------- ------- ------- ------- ------- -----------

Source: State Statistical Committee data

Exports of sunflowerseeds dropped from 310,000 metric tons in MY 2003 to
only 40,000 metric tons in MY 2004. Exports will not exceed 30,000
metric tons in MY 2005 due to increasing demand by domestic crushers.
Officially reported imports are very low. However, actual exports and
imports between the Ukraine and Russia may exceed the official numbers
and large crushers that have facilities in both countries can easily
ship sunflowerseeds from one country to another.

### Table 5. Export Trade Matrix, Sunflowerseed, 1,000 Metric Tons

  ------------------------- --------------- ------------------ --------------
  **Export Trade Matrix**                                      

  **Country**               Russian                            
                            Federation                         

  **Commodity**             Oilseed,                           
                            Sunflowerseed                      

  Time Period               Oct/Sep         Units:             1,000 MT

  Exports for:              2003                               **2004**

  U.S.                      0               U.S.               0

  Others                                    Others             

  Turkey                    125             Azerbaijan         5

  Italy                     78              Latvia             3

  Spain                     26              Kazakhstan         2

  Kazakhstan                23              Armenia            2

  Greece                    20                                 

  Germany                   14                                 

  France                    8                                  

  Lebanon                   6                                  

  Portugal                  4                                  

  Netherlands               3                                  

  Total for Others          307                                12

  Others not Listed         3                                  28

  Grand Total               310                                40
  ------------------------- --------------- ------------------ --------------

Ending stocks are forecast to decrease to 20,000 metric tons due to a
lower crop and better-organized crushing procedures.

## Soybeans

Production of soybeans increased in MY 2004 due to good weather and
higher yields. The area planted was slightly lower than a year ago, but
higher than the last ten years' average. Area planted in the southern
part of the country is increasing along with yields. In the far eastern
part of the country, increasing soybean production is driven by demand
from China, although shipments from Russia to China are not always
reflected in official data. The increase in soybean production in the
European part of the country is driven primarily by domestic demand for
soybean meal, cake, and vegetable oil. However, domestic production is
limited by climate and weather and MY 2005 is unlikely to be another
record year. At best output will slightly exceed 0.5 mmt.

Imports of soybeans will depend on resolution of administrative issues
regarding phytosanitary and sanitary policies in the VPSS and the
general policy on GMO registration. Given that actual imports of
soybeans in October 2004 through February 2005 did not exceed 1,360
metric tons (from Moldova and Germany), the import estimate for MY 2004
is decreased to 20,000 metric tons. The forecast for MY 2005 is left at
the same level. However, the situation may change radically if these
issues are resolved. Exports of soybeans are estimated at 25,000 metric
tons in MY 2004, mostly non-reported exports to China expected to grow
to 35,000 metric tons in MY 2005.

Soybean domestic crush increased in MY 2004 to 510,000 tons and will
remain at this relatively high level in MY 2005. Crushing decreased in
the far eastern part of the country, but increased in the southern
European part. Ending stocks are forecast at 15,000 metric tons.

### Table 6. PSD, Soybeans, 1,000 Metric Tons, 1,000 Hectares

+---------------------+-------+-------+-------+------+-------+-------+
| ####### PSD Table   |       |       |       |      |       |       |
+---------------------+-------+-------+-------+------+-------+-------+
| **Country**         | **Ru  |       |       |      |       |       |
|                     | ssian |       |       |      |       |       |
|                     | Fe    |       |       |      |       |       |
|                     | derat |       |       |      |       |       |
|                     | ion** |       |       |      |       |       |
+---------------------+-------+-------+-------+------+-------+-------+
| **Commodity**       | **Oil |       |       |      | (1000 |       |
|                     | seed, |       |       |      | HA)   |       |
|                     | Soyb  |       |       |      | (1000 |       |
|                     | ean** |       |       |      | MT)   |       |
+---------------------+-------+-------+-------+------+-------+-------+
|                     | 2003  | Re    | 2004  | Esti | 2005  | For   |
|                     |       | vised |       | mate |       | ecast |
+---------------------+-------+-------+-------+------+-------+-------+
|                     | USDA  | Post  | USDA  | Post | USDA  | Post  |
|                     | Off   | Est   | Off   | Esti | Off   | Est   |
|                     | icial | imate | icial | mate | icial | imate |
|                     | \[    | \[    | \[    | \[N  | \[    | \[    |
|                     | Old\] | New\] | Old\] | ew\] | Old\] | New\] |
+---------------------+-------+-------+-------+------+-------+-------+
| **Market Year       |       | 10    |       | 10/  |       | 10    |
| Begin**             |       | /2003 |       | 2004 |       | /2005 |
+---------------------+-------+-------+-------+------+-------+-------+
| Area Planted        | 586   | 586   | 580   | 570  | 0     | 580   |
+---------------------+-------+-------+-------+------+-------+-------+
| Area Harvested      | 401   | 401   | 480   | 555  | 0     | 530   |
+---------------------+-------+-------+-------+------+-------+-------+
| Beginning Stocks    | 5     | 5     | 5     | 5    | 30    | 30    |
+---------------------+-------+-------+-------+------+-------+-------+
| Production          | 393   | 393   | 450   | 555  | 0     | 520   |
+---------------------+-------+-------+-------+------+-------+-------+
| MY Imports          | 1     | 1     | 25    | 20   | 0     | 20    |
+---------------------+-------+-------+-------+------+-------+-------+
| MY Imp. from U.S.   | 0     | 0     | 0     | 0    | 0     | 0     |
+---------------------+-------+-------+-------+------+-------+-------+
| MY Imp. from the EC | 0     | 0     | 0     | 0    | 0     | 0     |
+---------------------+-------+-------+-------+------+-------+-------+
| TOTAL SUPPLY        | 399   | 399   | 480   | 580  | 30    | 570   |
+---------------------+-------+-------+-------+------+-------+-------+
| MY Exports          | 5     | 5     | 10    | 25   | 0     | 35    |
+---------------------+-------+-------+-------+------+-------+-------+
| MY Exp. to the EC   | 0     | 0     | 0     | 0    | 0     | 0     |
+---------------------+-------+-------+-------+------+-------+-------+
| Crush Dom.          | 379   | 379   | 430   | 510  | 0     | 505   |
| Consumption         |       |       |       |      |       |       |
+---------------------+-------+-------+-------+------+-------+-------+
| Food Use Dom.       | 0     | 0     | 0     | 0    | 0     | 0     |
| Consump.            |       |       |       |      |       |       |
+---------------------+-------+-------+-------+------+-------+-------+
| Feed,Seed,Waste     | 10    | 10    | 10    | 15   | 0     | 15    |
| Dm.Cn.              |       |       |       |      |       |       |
+---------------------+-------+-------+-------+------+-------+-------+
| TOTAL Dom.          | 389   | 389   | 440   | 525  | 0     | 520   |
| Consumption         |       |       |       |      |       |       |
+---------------------+-------+-------+-------+------+-------+-------+
| Ending Stocks       | 5     | 5     | 30    | 30   | 0     | 15    |
+---------------------+-------+-------+-------+------+-------+-------+
| TOTAL DISTRIBUTION  | 399   | 399   | 480   | 580  | 0     | 570   |
+---------------------+-------+-------+-------+------+-------+-------+

Source: Federal State Statistical Service

### Table 7. Soybeans: Area, and Production by Regions

  ----------------- ----------- ------ ------ ------ ------ ------ ------ -----------
                    1986-1990   1998   1999   2000   2001   2002   2003   2004
                                                                          (prelim.)

  PLANTED AREA,                                                           
  thousand hectares                                                       

  Russia, total     631         452    439    421    417    476    586    571

  \- including                                                            
  major producers:                                                        

  Amur oblast       408         211    219    n.a    206    240    283    253

  Primorskiy kray   106         90     92     n.a    91     108    110    129

  Krasnodar kray    30          78     50     n.a    44     59     102    92

  PRODUCTION,                                                             
  thousand metric                                                         
  tons                                                                    

  Russia, total     649         297    334    342    350    423    393    555

  \- including                                                            
  major producers:                                                        

  Amur Oblast       430         162    183    n.a    204    265    156    178

  Primorskiy kray   106         60     54     n.a    68     23     69     114

  Krasnodar kray    42          43     48     n.a    36     97     103    162
  ----------------- ----------- ------ ------ ------ ------ ------ ------ -----------

Source: Federal State Statistical Service

## Rapeseed

Rapeseed production will decrease from a record high of 276,000 metric
tons in MY 2004 to 220,000 metric tons in MY 2005 based on the
assumption that planted area and yields will be close to average. No
significant breakthroughs are expected in yields, so rapeseeds will not
become comparable with sunflowerseeds. However, in some regions of the
country where producers can easily find export markets like Kaliningrad
oblast, production of rapeseeds may grow due to better planting seeds
boosting yields.

### Table 8. PSD, Rapeseed, 1,000 Metric Tons, 1,000 Hectares

  --------------------- -------------- ---------- ---------- ---------- ---------- ----------
  **PSD Table**                                                                    

  **Country**           **Russian                                                  
                        Federation**                                               

  **Commodity**         **Oilseed,                                      (1000      
                        Rapeseed**                                      HA)(1000   
                                                                        MT)        

                        2003           Revised    2004       Estimate   2005       Forecast

                        USDA Official  Post       USDA       Post       USDA       Post
                        \[Old\]        Estimate   Official   Estimate   Official   Estimate
                                       \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  **Market Year Begin**                10/2003               10/2004               10/2005

  Area Planted          230            230        160        251        0          230

  Area Harvested        197            197        130        250        0          200

  Beginning Stocks      16             16         16         16         0          16

  Production            192            192        120        276        0          220

  MY Imports            4              4          0          0          0          0

  MY Imp. from U.S.     0              0          0          0          0          0

  MY Imp. from the EC   0              0          0          0          0          0

  TOTAL SUPPLY          212            212        136        292        0          236

  MY Exports            55             55         20         45         0          30

  MY Exp. to the EC     0              0          0          0          0          0

  Crush Dom.            124            124        105        215        0          180
  Consumption                                                                      

  Food Use Dom.         0              0          0          0          0          0
  Consump.                                                                         

  Feed,Seed,Waste       17             17         11         16         0          15
  Dm.Cn.                                                                           

  TOTAL Dom.            141            141        116        231        0          195
  Consumption                                                                      
  --------------------- -------------- ---------- ---------- ---------- ---------- ----------

Source: Federal State Statistical Service

### Table 10. Export Trade Matrix, 1,000 Metric Tons.

+-----------------------+------------+-------------------+-------------+
| ######                |            |                   |             |
| # Export Trade Matrix |            |                   |             |
+-----------------------+------------+-------------------+-------------+
| **Country**           | Russian    |                   |             |
|                       | Federation |                   |             |
+-----------------------+------------+-------------------+-------------+
| **Commodity**         | Oilseed,   |                   |             |
|                       | Rapeseed   |                   |             |
+-----------------------+------------+-------------------+-------------+
| Time Period           | Oct/Sep    | Units:            | 1,000 MT    |
+-----------------------+------------+-------------------+-------------+
| Exports for:          | 2003       |                   | **2004**    |
+-----------------------+------------+-------------------+-------------+
| U.S.                  |            | U.S.              |             |
+-----------------------+------------+-------------------+-------------+
| Others                |            | Others            |             |
+-----------------------+------------+-------------------+-------------+
| Latvia                | 26         | Germany           | 13          |
+-----------------------+------------+-------------------+-------------+
| Denmark               | 14         | Denmark           | 12          |
+-----------------------+------------+-------------------+-------------+
| Germany               | 12         | Latvia            | 10          |
+-----------------------+------------+-------------------+-------------+
| Belgium               | 9          | Estonia           | 5           |
+-----------------------+------------+-------------------+-------------+
| Estonia               | 3          | Bangladesh        | 1           |
+-----------------------+------------+-------------------+-------------+
|                       |            |                   |             |
+-----------------------+------------+-------------------+-------------+
|                       |            |                   |             |
+-----------------------+------------+-------------------+-------------+
|                       |            |                   |             |
+-----------------------+------------+-------------------+-------------+
|                       |            |                   |             |
+-----------------------+------------+-------------------+-------------+
|                       |            |                   |             |
+-----------------------+------------+-------------------+-------------+
| Total for Others      | 64         |                   | 41          |
+-----------------------+------------+-------------------+-------------+
| Others not Listed     | 1          |                   | 4           |
+-----------------------+------------+-------------------+-------------+
| Grand Total           | 65         |                   | 45          |
+-----------------------+------------+-------------------+-------------+

## Peanuts

Russia does not produce peanuts, but rather imports raw peanuts for the
growing domestic food processing and snack industries. Official data
shows that in MY 2003 Russia imported 75,400 metric tons, including
51,325 metric tons from China, 13,000 metric tons less than the year
before. Given that for many agricultural and food products the Russian
border with China is porous, it is possible to assume that real imports
of peanuts remain the same or slightly higher each year even though
official data does not show this. Imports of peanuts from all other
sources (Uzbekistan, Tajikistan, India, Argentina, United States)
increased in MY 2003 and Post estimates that real imports of peanuts in
MY 2004 will remain at the same level. Imports from the United States
doubled in MY 2003 to reach 2,344 metric tons due to increased demand
from the Russian snack industry for better quality peanuts. In MY 2004,
imports are estimated to increase mostly from China. Officially reported
Chinese exports to Russia in October -- March of MY 2004 are 41,830
metric tons (75 percent more than in the same period of MY 2003).

## Other Oilseed Crops

Production of other oilseeds crops is not significant and depends on
farmers' access to niche markets. Large companies are not making
investments to ensure a steady supply of local production of small
oilseeds crops because there is no niche market for the processed, and
thus they preferring purchasing sunflowerseeds.

# Total Meal

With the increase in crushing came an increase in the production of all
protein meals in MY 2004 by fifteen percent. This level will be
maintained in MY 2005. Sunflowerseed meal and cake still constitute the
main portion of protein meal consumed in Russia and in MY 2004, they
exceeded 75 percent of total oilseeds and fish meal production. The
share of soybean meal in total production was less than 17 percent and
share of rapeseeds meal was less than five percent. Fish meal production
is decreasing and its share in total meal production was not more than
three percent of the total. The concentration of crushing at large
modern plants improved the quality of oilseeds meal. Total supply of
protein meal increased in MY 2004 by more than 300,000 metric tons, but
a further increase is not expected unless soybeans for crushing or
soybean meal imports are increased.

## Production

Production of sunflowerseed meal is forecast to increase to 1.74 mmt in
MY 2005 a slight increase from MY 2004, but almost twelve percent more
than MY 2003. Production of soybean meal is forecast to remain at the
level of MY 2004 and production of rapeseed meal will decrease by 20,000
metric tons due to a decrease in crushing. Fish meal production is
forecast to increase by 5,000 metric tons from last year to 60,000 tons,
the average level for the last five years.

### Table 9. Consolidated PSD for Major Oil Meals and Fish Meal, 1,000 Metric Tons

  ------------------------------------- ---------- ----------- ----------
  Beg. Month/Year of Marketing Year:    10/03      10/04       10/05

                                        Revised    Prelim.     Forecast

  Crush                                 4503       5175        5135

  Beginning Stocks                      35         30          35

  Production                            1,977      2,280       2,273

  MY Imports                            483        495         495

  MY Imports from U.S.                  90         100         0

  MY Imports from the EC                0          0           0

  TOTAL SUPPLY                          2,495      2,805       2,803

  MY Exports                            523        410         400

  MY Exports to the EC                  0          0           0

  Industrial Dom.Consum                 0          0           0

  Food Use Dom. Consump.                0          0           0

  Feed Waste Dom. Consump.              1,942      2,360       2,370

  TOTAL Dom.Consumption                 1,942      2,360       2,370

  Ending Stocks                         30         35          33

  TOTAL DISTRIBUTION                    2,495      2,805       2,803
  ------------------------------------- ---------- ----------- ----------

Source: Prepared based on PSD tables for each type of feed meal.

## Consumption

After an increase in domestic meal consumption in MY 2004 to 2.36 mmt,
consumption is forecast to increase by another 10,000 metric tons in MY
2005 as long as exports of protein meal decrease by the same volume.

## Trade

Imports of meal are forecast to remain at 495,000 metric tons, most of
which will be soybean meal imports. Exports are forecast to decrease by
10,000 metric tons to 400,000 metric tons, almost 24 percent lower than
in MY 2003, caused by increased domestic demand for meal from the
poultry and livestock industries.

## Stocks

Ending stocks are forecast at 33,000 metric tons.

## Oilseed Meal Tables

### Sunflowerseed Meal

### Table 10. PSD, Sunflowerseed Meal, 1,000 Metric Tons

  --------------------- ----------------- ---------- ----------- ----------- -------------- -----------
  **PSD Table**                                                                             

  **Country**           **Russian                                                           
                        Federation**                                                        

  **Commodity**         **Meal,                                              (1000          
                        Sunflowerseed**                                      MT)(PERCENT)   

                        2003              Revised    2004        Estimate    2005           Forecast

                        USDA Official     Post       USDA        Post        USDA Official  Post
                        \[Old\]           Estimate   Official    Estimate    \[Old\]        Estimate
                                          \[New\]    \[Old\]     \[New\]                    \[New\]

  **Market Year Begin**                   10/2003                10/2004                    10/2005

  Crush                 4000              4000       4250        4450        0              4450

  Extr. Rate, 999.9999  0,39              0,39       0,3882352   0,3887640   0              0,3910112

  Beginning Stocks      20                20         20          20          20             20

  Production            1560              1560       1650        1730        0              1740

  MY Imports            45                45         45          45          0              45

  MY Imp. from U.S.     0                 0          0           0           0              0

  MY Imp. from the EC   0                 0          0           0           0              0

  TOTAL SUPPLY          1625              1625       1715        1795        20             1805

  MY Exports            523               523        450         410         0              400

  MY Exp. to the EC     0                 0          0           0           0              0

  Industrial Dom.       0                 0          0           0           0              0
  Consum                                                                                    

  Food Use Dom.         0                 0          0           0           0              0
  Consump.                                                                                  

  Feed Waste Dom.       1082              1082       1245        1365        0              1385
  Consum                                                                                    

  TOTAL Dom.            1082              1082       1245        1365        0              1385
  Consumption                                                                               

  Ending Stocks         20                20         20          20          0              20

  TOTAL DISTRIBUTION    1625              1625       1715        1795        0              1805
  --------------------- ----------------- ---------- ----------- ----------- -------------- -----------

### Table 11. Export Trade Matrix, Sunflowerseed Meal, 1,000 Metric Tons

+------------------------+-------------+----------------+-------------+
| #####                  |             |                |             |
| ## Export Trade Matrix |             |                |             |
+------------------------+-------------+----------------+-------------+
| **Country**            | Russian     |                |             |
|                        | Federation  |                |             |
+------------------------+-------------+----------------+-------------+
| **Commodity**          | Meal,       |                |             |
|                        | Su          |                |             |
|                        | nflowerseed |                |             |
+------------------------+-------------+----------------+-------------+
| Time Period            | Oct/Sep     | Units:         | 1,000 MT    |
+------------------------+-------------+----------------+-------------+
| Exports for:           | 2003        |                | **2004**    |
+------------------------+-------------+----------------+-------------+
| U.S.                   |             | U.S.           |             |
+------------------------+-------------+----------------+-------------+
| Others                 |             | Others         |             |
+------------------------+-------------+----------------+-------------+
| Turkey                 | 209         | Turkey         | 130         |
+------------------------+-------------+----------------+-------------+
| Italy                  | 112         | Italy          | 85          |
+------------------------+-------------+----------------+-------------+
| Egypt                  | 81          | Spain          | 30          |
+------------------------+-------------+----------------+-------------+
| Spain                  | 27          | Cyprus         | 25          |
+------------------------+-------------+----------------+-------------+
| Israel                 | 22          |                |             |
+------------------------+-------------+----------------+-------------+
| Greece                 | 22          |                |             |
+------------------------+-------------+----------------+-------------+
| Cyprus                 | 19          |                |             |
+------------------------+-------------+----------------+-------------+
| Azerbaijan             | 15          |                |             |
+------------------------+-------------+----------------+-------------+
| Latvia                 | 15          |                |             |
+------------------------+-------------+----------------+-------------+
| Morocco                | 14          |                |             |
+------------------------+-------------+----------------+-------------+
| Total for Others       | 536         |                | 270         |
+------------------------+-------------+----------------+-------------+
| Others not Listed      | 39          |                | 140         |
+------------------------+-------------+----------------+-------------+
| Grand Total            | 575         |                | 410         |
+------------------------+-------------+----------------+-------------+

### Soybean Meal

### Table 12. PSD, Soybean Meal, 1,000 Metric Tons

  ---------------------- -------------- ---------- ---------- ---------- -------------- -----------
  **PSD Table**                                                                         

  **Country**            **Russian                                                      
                         Federation**                                                   

  **Commodity**          **Meal,                                         (1000          
                         Soybean**                                       MT)(PERCENT)   

                         2003           Revised    2004       Estimate   2005           Forecast

                         USDA Official  Post       USDA       Post       USDA Official  Post
                         \[Old\]        Estimate   Official   Estimate   \[Old\]        Estimate
                                        \[New\]    \[Old\]    \[New\]                   \[New\]

  **Market Year Begin**                 10/2003               10/2004                   10/2005

  Crush                  379            379        430        510        0              505

  Extr. Rate, 999.9999   0,75726        0,757256   0,75814    0,754902   0              0,7584158

  Beginning Stocks       15             15         10         10         10             15

  Production             287            287        326        385        0              383

  MY Imports             353            353        365        365        0              365

  MY Imp. from U.S.      90             90         100        100        0              0

  MY Imp. from the EC    0              0          0          0          0              0

  TOTAL SUPPLY           655            655        701        760        10             763

  MY Exports             0              0          0          0          0              0

  MY Exp. to the EC      0              0          0          0          0              0

  Industrial Dom. Consum 0              0          0          0          0              0

  Food Use Dom. Consump. 0              0          0          0          0              0

  Feed Waste Dom. Consum 645            645        691        745        0              750

  TOTAL Dom. Consumption 645            645        691        745        0              750

  Ending Stocks          10             10         10         15         0              13

  TOTAL DISTRIBUTION     655            655        701        760        0              763
  ---------------------- -------------- ---------- ---------- ---------- -------------- -----------

### Table 13. Import Trade Matrix, Soybean Meal, 1,000 Metric Tons

  ------------------------- ------------- ----------------- --------------
  **Import Trade Matrix**                                   

  **Country**               Russian                         
                            Federation                      

  **Commodity**             Meal, Soybean                   

  Time Period               Oct/Sep       Units:            1,000 MT

  Imports for:              2003                            **2004**

  U.S.                      81            U.S.              30

  Others                                  Others            

  Argentina                 98            Netherlands       130

  Germany                   53            Germany           110

  Netherlands               52            Belgium           45

  Brazil                    47            Argentina         10

  Belgium                   4             Norway            10

  Yugoslavia                3             Latvia            8

  Moldova                   2                               

  India                     2                               

  Ukraine                   1                               

  Kazakhstan                1                               

  Total for Others          263                             313

  Others not Listed         2                               22

  Grand Total               346                             365
  ------------------------- ------------- ----------------- --------------

For MY 2003, soybean meal imports are calculated on the basis of
official customs data and differ from official USDA data. In MY 2003,
Russian imports of soybean meal (HS Number 2304) for feeding increased
to 337,863 metric tons (up seven percent form last year) and imports of
soybean meal for human consumption (HS Number 120810) increased to 8,435
metric tons (almost double from the previous year).

In the middle of 2004, Russia successively banned imports of plant
products from the Netherlands, Germany, and some other countries until
agreement on a uniform plant certificate was reached. This ban covered
imports from these countries of all soybean products, including
processed soybean products for food consumption. The situation is
expected to be resolved by the end of MY 2005, but some meal from the
Netherlands and Germany was also shipped through neighboring countries,
like Norway. According to non-official sources, in October 2004 through
February 2005, Russia imported over 223,000 metric tons of soybean meal,
including 83,000 tons form Netherlands, 47,000 metric tons form Germany,
32,000 tons form Belgium, and 20,000 tons from Argentina.

## Rapeseed Meal

### Table 14. PSD Rapeseed Meal, 1,000 Metric Tons

  --------------------- -------------- ---------- ---------- ---------- -------------- ----------
  **PSD Table**                                                                        

  **Country**           **Russian                                                      
                        Federation**                                                   

  **Commodity**         **Meal,                                         (1000          
                        Rapeseed**                                      MT)(PERCENT)   

                        2003           Revised    2004       Estimate   2005           Forecast

                        USDA Official  Post       USDA       Post       USDA Official  Post
                        \[Old\]        Estimate   Official   Estimate   \[Old\]        Estimate
                                       \[New\]    \[Old\]    \[New\]                   \[New\]

  **Market Year Begin**                10/2003               10/2004                   10/2005

  Crush                 124            124        105        215        0              180

  Extr. Rate, 999.9999  0,52419        0,52419    0,57143    0,511628   0              0,5

  Beginning Stocks      0              0          0          0          0              0

  Production            65             65         60         110        0              90

  MY Imports            0              0          0          0          0              0

  MY Imp. from U.S.     0              0          0          0          0              0

  MY Imp. from the EC   0              0          0          0          0              0

  TOTAL SUPPLY          65             65         60         110        0              90

  MY Exports            0              0          0          0          0              0

  MY Exp. to the EC     0              0          0          0          0              0

  Industrial Dom.       0              0          0          0          0              0
  Consum                                                                               

  Food Use Dom.         0              0          0          0          0              0
  Consump.                                                                             

  Feed Waste Dom.       65             65         60         110        0              90
  Consum                                                                               

  TOTAL Dom.            65             65         60         110        0              90
  Consumption                                                                          

  Ending Stocks         0              0          0          0          0              0

  TOTAL DISTRIBUTION    65             65         60         110        0              90
  --------------------- -------------- ---------- ---------- ---------- -------------- ----------

### Fish Meal

Fish meal production is forecast to rebound to 60,000 metric tons along
with a possible slow recovery of the fish processing industry.

### Table 15. PSD, Fish Meal, 1,000 Metric Tons

  -------------------- -------------- ---------- ---------- ---------- -------------- -----------
  **PSD Table**                                                                       

  **Country**          **Russian                                                      
                       Federation**                                                   

  **Commodity**        **Meal, Fish**                                  (1000          
                                                                       MT)(PERCENT)   

                       2003           Revised    2004       Estimate   2005           Forecast

                       USDA Official  Post       USDA       Post       USDA Official  Post
                       \[Old\]        Estimate   Official   Estimate   \[Old\]        Estimate
                                      \[New\]    \[Old\]    \[New\]                   \[New\]

  **Market Year                       10/2003               10/2004                   10/2005
  Begin**                                                                             

  Catch For Reduction  0              0          0          0          0              0

  Extr. Rate, 999.9999 0              0          0          0          0              0

  Beginning Stocks     0              0          0          0          0              0

  Production           65             65         60         55         0              60

  MY Imports           85             85         85         85         0              85

  MY Imp. from U.S.    0              0          0          0          0              0

  MY Imp. from the EC  0              0          0          0          0              0

  TOTAL SUPPLY         150            150        145        140        0              145

  MY Exports           0              0          0          0          0              0

  MY Exp. to the EC    0              0          0          0          0              0

  Industrial Dom.      0              0          0          0          0              0
  Consum                                                                              

  Food Use Dom.        0              0          0          0          0              0
  Consump.                                                                            

  Feed Waste Dom.      150            150        145        140        0              145
  Consum                                                                              

  TOTAL Dom.           150            150        145        140        0              145
  Consumption                                                                         

  Ending Stocks        0              0          0          0          0              0

  TOTAL DISTRIBUTION   150            150        145        140        0              145
  -------------------- -------------- ---------- ---------- ---------- -------------- -----------

# Total Oils

The total supply of vegetable oils increased in MY 2004 by 170,000
metric tons driven by demand from vegetable oil processors and growing
consumer demand for processed oils products. However in MY 2005, the
supply is not forecast to grow further and will remain at 2.72 mmt.

### Table 16. PSD, Total Vegetable Oils, 1,000 Metric Tons

  --------------------------------------- ---------- --------- -----------
  Beg. Month/Year of Marketing Year:                           

  Russian Federation                      10/03      10/04     10/05

                                          Revised    Prelim.   Forecast

  Crush                                   4,503      5,175     5,135

  Beginning Stocks                        79         107       107

  Production                              1,678      1,905     1,890

  MY Imports                              800        714       724

  MY Imports from U.S.                    0          0         0

  MY Imports from the EC                  80         50        50

  TOTAL SUPPLY                            2,557      2,726     2,721

  MY Exports                              137        170       190

  MY Exports to the EC                    0          0         0

  Industrial Dom.Consum                   548        670       685

  Food Use Dom. Consump.                  1,745      1,749     1,754

  Feed Waste Dom. Consumpt.               20         30        30

  TOTAL Dom.Consumption                   2,313      2,449     2,469

  Ending Stocks                           107        107       62

  TOTAL DISTRIBUTION                      2,557      2,726     2,721
  --------------------------------------- ---------- --------- -----------

Source: Prepared by Post based on individual PSDs for each type of
vegetable oil (sunflowerseed, soybean, rapeseed, palm, olive, coconut).

The structure of vegetable oil supply is given in Table 17.

### Table 17. Supply of Vegetable Oils, 1998-2003, 1,000 Metric Tons

+----------------+--------+--------+--------+--------+--------+--------+
|                | MY     | MY     | MY     | MY     | MY     | MY     |
|                | 2000   | 2001   | 2002   | 2003   | 2004   | 2005   |
|                |        |        |        |        |        | Fo     |
|                |        |        |        |        | P      | recast |
|                |        |        |        |        | relim. |        |
+----------------+--------+--------+--------+--------+--------+--------+
| Total Oil      | 2,333  | 2,293  | 2,491  | 2,557  | 2,726  | 2,721  |
+----------------+--------+--------+--------+--------+--------+--------+
| Sunflowerseed  | 1,265  | 1,505  | 1,765  | 1,783  | 1,945  | 1,945  |
| oil            |        |        |        |        |        |        |
+----------------+--------+--------+--------+--------+--------+--------+
| Soybean Oil    | 638    | 328    | 201    | 176    | 165    | 155    |
+----------------+--------+--------+--------+--------+--------+--------+
| Rapeseed Oil   | 67     | 45     | 50     | 50     | 85     | 80     |
+----------------+--------+--------+--------+--------+--------+--------+
| Palm Oil       | 308    | 340    | 390    | 429    | 410    | 415    |
+----------------+--------+--------+--------+--------+--------+--------+
| Coco-nut Oil   | 50     | 70     | 75     | 107    | 107    | 112    |
+----------------+--------+--------+--------+--------+--------+--------+
| Olive Oil      | 5      | 5      | 10     | 12     | 14     | 14     |
+----------------+--------+--------+--------+--------+--------+--------+

Source: Calculated based on official production and import data of the
State Statistical Committee and the State Customs Committee. Post
estimates and forecasts for MY 2004 and MY 2005.

## Production

Table 18 below shows official data for production of vegetable oil for
all types of enterprises except for non-reported production on farms.

### Table 18. Vegetable Oil Production in Russia, 1,000 Metric Tons

  ------- --------- --------- ---------- --------- ---------- -----------
          1999/00   2000/01   2001/02    2002/03   2003/04    2004/05 est

  Oct.    141       150       138        155       186        178

  Nov.    136       160       148        176       188        206

  Dec.    148       174       131        183       196        213

  Jan.    117       123       103        145       173        Est. 203

  Feb.    124       119       78         129       159        Est. 170

  Mar.    117       122       69         133       157        Est. 165

  Apr.    107       106       79         121       149        Est. 150

  May     105       94        59         97        142        Est. 145

  June    90        81        69         96        136        Est. 140

  July    75        61        73         85        126        Est. 130

  Aug.    54        36        54         55        100        Est. 100

  Sept.   67        67        86         85        103        Est. 105

  Total   1,282     1,292     1,086      1,459     1,815      1,905
  ------- --------- --------- ---------- --------- ---------- -----------

In January 2005, the Russian Federal Statistical Service (the new name
for the former State Statistical Committee of the Russian Federation)
stopped publishing total vegetable oil production statistics, but added
new data such as the refined oil production. Data on refined oil
production for January through March 2005 are 48.1, 46.1, and 57.1
thousand metric tons respectively. Post's monthly estimates of vegetable
oil production in MY 2004 are based on the available industrial crushing
capacity and on the previous year's data. Official data on vegetable oil
production in MY 2003 is higher than the official USDA revised data in
the PSD table. According to official data, in December 2004, the share
of refined vegetable oil in total vegetable oil production was 25
percent of total vegetable oil production and based on this proportion,
estimates of total vegetable oil production in January-March 2005 would
be 604,000 metric tons, 66,000 metric tons higher than the estimated
January-March production given in Table 18.

## Consumption

Consumption of vegetable oil continues to increase and in MY 2005 total
vegetable oil consumption will be 20,000 metric tons higher than in MY
2004. Industrial domestic consumption is growing faster than food use
domestic consumption, while feed waste consumption remains at the
relatively low level of 30,000 metric tons. Along with a decreased
portion of on-farm crushers in crushing, this number will not increase
in the future.

### Table 19. Production of Vegetable Oil Food Products in Russia, 1,000 Metric Tons

+--------+--------+--------+-------+-------+--------+-------+--------+
|        | 1      | 1      | 20    | 20    | 2      | 20    | 2      |
|        | 998/99 | 999/00 | 00/01 | 01/02 | 002/03 | 03/04 | 004/05 |
+--------+--------+--------+-------+-------+--------+-------+--------+
| ####   |        |        |       |       |        |       |        |
| ## Mar |        |        |       |       |        |       |        |
| garine |        |        |       |       |        |       |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Oct.   | 31     | 38     | 48    | 52    | 52     | 51    | 50     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Nov.   | 34     | 43     | 51    | 52    | 56     | 49    | 54     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Dec.   | 42     | 40     | 47    | 48    | 56     | 51    | 57     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Jan.   | 27     | 32     | 38    | 38    | 46     | 41    | 44     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Feb.   | 28     | 38     | 41    | 37    | 45     | 43    | 51     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Mar.   | 31     | 39     | 41    | 39    | 49     | 47    | 55     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Apr.   | 30     | 34     | 39    | 42    | 48     | 48    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| May    | 26     | 33     | 37    | 33    | 40     | 41    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Jun.   | 27     | 34     | 38    | 40    | 45     | 45    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Jul.   | 25     | 30     | 39    | 37    | 36     | 41    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Aug.   | 27     | 31     | 34    | 38    | 37     | 46    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Sep.   | 34     | 42     | 44    | 47    | 46     | 50    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| MY     | 362    | 431    | 497   | 504   | 555    | 550   | 311    |
| TOTAL  |        |        |       |       |        |       |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
|        | CY     | CY     | CY    | CY    | CY     | CY    | CY     |
|        | 1999   | 2000   | 2001  | 2002  | 2003   | 2004  | 2005   |
+--------+--------+--------+-------+-------+--------+-------+--------+
| CY     | 376    | 457    | 502   | 516   | 542    | 561   | 150    |
| TOTAL  |        |        |       |       |        |       |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| #####  |        |        |       |       |        |       |        |
| # Mayo |        |        |       |       |        |       |        |
| nnaise |        |        |       |       |        |       |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Oct.   | n.a.   | 16     | 20    | 26    | 27     | 28    | 36     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Nov.   | n.a.   | 17     | 23    | 25    | 27     | 29    | 40     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Dec.   | n.a.   | 23     | 28    | 30    | 33     | 37    | 50     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Jan.   | n.a.   | 16     | 22    | 23    | 25     | 29    | 32     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Feb.   | n.a.   | 17     | 22    | 22    | 25     | 31    | 39     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Mar.   | n.a.   | 20     | 24    | 25    | 27     | 35    | 45     |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Apr.   | n.a.   | 19     | 25    | 27    | 30     | 39    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| May    | n.a.   | 20     | 27    | 25    | 28     | 35    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Jun.   | n.a.   | 21     | 26    | 27    | 29     | 41    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Jul.   | 15     | 19     | 26    | 28    | 31     | 41    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Aug.   | 15     | 20     | 26    | 27    | 28     | 39    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| Sep.   | 16     | 20     | 25    | 26    | 29     | 40    |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| MY     | 46     | 228    | 292   | 310   | 340    | 423   | 242    |
| TOTAL  |        |        |       |       |        |       |        |
+--------+--------+--------+-------+-------+--------+-------+--------+
| CY     | CY     | CY     | CY    | CY    | CY     | CY    | CY     |
| TOTAL  | 1999   | 2000   | 2001  | 2002  | 2003   | 2004  | 2005   |
+--------+--------+--------+-------+-------+--------+-------+--------+
|        | 101    | 243    | 302   | 317   | 346    | 457   | 115    |
+--------+--------+--------+-------+-------+--------+-------+--------+

Source: State Statistical Committee data

### Margarine

The major domestic producers of margarine have not changed since last
year, although data on their share in total production is not available.
The total volume increased to 555,000 metric tons in MY 2002 and is
expected to exceed this level in MY 2004 after a 5,000 metric tons
decrease in MY 2003. Along with growing production, Russian exports of
margarine have been permanently increasing and in MY 2003 Russia
exported 28,800 metric tons of margarine (55 percent more than previous
year), including 16,400 metric tons to Kazakhstan.

### Mayonnaise

Production of mayonnaise continues to increase, but at a slower pace
than in MY 2004. Further growth is this market is connected with the
improvement in quality and development of acknowledged brands of
mayonnaise in the domestic market. Development of this industry will be
dominated by mergers and redistribution of power between the main
players. For additional information, see GAIN RS4027.

### Bottled Vegetable Oil

Production of bottled vegetable oil has also reached a temporary optimum
and changes in the share of production among the main players are not
significant.

## Trade

Total imports of vegetable oil will increase to 724,000 metric tons
after dropping in MY 2004, but will not return to the level at the
beginning of the decade. A decrease in imports of vegetable oil is due
to an increase in domestic crushing of oilseeds.

## Stocks

Ending stocks of vegetable oil are forecast to decrease to 62,000 metric
tons due to increased exports and a more equal distribution of vegetable
oil consumption through the year.

## Policy

The GOR increased the import tariff on palm oil in boxes, barrels, bins
and cans to 15 percent with a minimum rate of not less than 0.12 Euro
per kilogram (for more information see GAIN report RS4064) for nine
months. This decision followed the previous one (September 2004), on
introducing a temporary "mixed tax" for imports of several categories of
fats and oils, including vegetable fats and oils in small packages (GAIN
report RS4049). All of these measures benefit domestic producers.

### Table 20. Import Tariffs on Vegetable Oil and Vegetable Oil Products

+------------+--------------------------------------+-----------------+
| HS Number  | Name of product                      | Import tariff   |
+------------+--------------------------------------+-----------------+
| 1507 10    | Soybean oil and its fractions,       | 15%             |
| 100 0      | crude, for technical and industrial  |                 |
|            | processing, except for production of |                 |
|            | food products                        |                 |
+------------+--------------------------------------+-----------------+
| 1507 10    | \- in primary packages net weight 10 | 15%, but not    |
| 900 1      | liters or less                       | less than Euro  |
|            |                                      | 0.14/kg         |
| 1507 90    |                                      |                 |
| 900 1      |                                      |                 |
+------------+--------------------------------------+-----------------+
| 1507 10    | \- other                             | 15%, but not    |
| 900 9      |                                      | less than Euro  |
|            |                                      | 0.1/kg          |
| 1507 90    |                                      |                 |
| 900 9      |                                      |                 |
+------------+--------------------------------------+-----------------+
| 1508 10    | Peanut oil and its fractions, crude, | 5%              |
| 100 0      | for technical and industrial         |                 |
|            | processing, except for production of |                 |
|            | food products                        |                 |
+------------+--------------------------------------+-----------------+
| 1509       | Olive oil and its fractions          | 10%             |
+------------+--------------------------------------+-----------------+
| 1510       | Other oils and their fractions,      | 15%             |
|            | obtained solely from olives, and     |                 |
|            | fractions thereof                    |                 |
+------------+--------------------------------------+-----------------+
| 1511       | Palm oil, crude and refined          | 5%              |
+------------+--------------------------------------+-----------------+
| 1511 10    | \- - - in boxes, barrels, cans and   | 15 %, but not   |
| 900 1      | bins, net-weight 200 kg or less      | less than Euro  |
|            |                                      | 0.12/kg         |
+------------+--------------------------------------+-----------------+
| 1511 90    | \- - - in boxes, barrels, cans and   | 15 %, but not   |
| 190 1      | bins, net-weight 200 kg or less      | less than Euro  |
|            |                                      | 0.12/kg         |
+------------+--------------------------------------+-----------------+
| 1511 90    | \- - - in boxes, barrels, cans and   | 15 %, but not   |
| 990 1      | bins, net-weight 200 kg or less      | less than Euro  |
|            |                                      | 0.12/kg         |
+------------+--------------------------------------+-----------------+
| 1512       | Sunflowerseed oil, safflower or      | 15%             |
|            | cottonseed oil, and fractions        |                 |
|            | thereof                              |                 |
+------------+--------------------------------------+-----------------+
| 1512 11    | \- in primary packages net weight 10 | 15%, but not    |
| 910 1      | liters or less                       | less than Euro  |
|            |                                      | 0.14/kg         |
| 1512 11    |                                      |                 |
| 990 1      |                                      |                 |
|            |                                      |                 |
| 1512 19    |                                      |                 |
| 910 1      |                                      |                 |
|            |                                      |                 |
| 1512 19    |                                      |                 |
| 990 1      |                                      |                 |
+------------+--------------------------------------+-----------------+
| 1512 11    | \- other                             | 15%, but not    |
| 910 9      |                                      | less than Euro  |
|            |                                      | 0.1/kg          |
| 1512 11    |                                      |                 |
| 990 9      |                                      |                 |
|            |                                      |                 |
| 1512 19    |                                      |                 |
| 910 9      |                                      |                 |
|            |                                      |                 |
| 1512 19    |                                      |                 |
| 990 9      |                                      |                 |
+------------+--------------------------------------+-----------------+
| 1513       | Coconut (copra) oil, palm kernel     | 5%              |
|            | oil, and fractions thereof           |                 |
+------------+--------------------------------------+-----------------+
| 1514       | Rapeseed, colza or mustard oil, and  | 15%             |
|            | fractions thereof                    |                 |
+------------+--------------------------------------+-----------------+
| 1514 11    | \- in primary packages net weight 10 | 15%, but not    |
| 900 1      | liters or less                       | less than Euro  |
|            |                                      | 0.14/kg         |
| 1514 19    |                                      |                 |
| 900 1      |                                      |                 |
|            |                                      |                 |
| 1514 91    |                                      |                 |
| 900 1      |                                      |                 |
|            |                                      |                 |
| 1514 99    |                                      |                 |
| 900 1      |                                      |                 |
+------------+--------------------------------------+-----------------+
| 1514 11    | \- other                             | 15%, but not    |
| 900 9      |                                      | less than Euro  |
|            |                                      | 0.1/kg          |
| 1514 19    |                                      |                 |
| 900 9      |                                      |                 |
|            |                                      |                 |
| 1514 91    |                                      |                 |
| 900 9      |                                      |                 |
|            |                                      |                 |
| 1514 99    |                                      |                 |
| 900 9      |                                      |                 |
+------------+--------------------------------------+-----------------+
| 1515       | Other fixed vegetable fats and oils  | 5%              |
|            | and their fractions                  |                 |
+------------+--------------------------------------+-----------------+
| 1516 20    | \- - - \[vegetable oils and fats and | 15 %, but not   |
| 910 0      | their fractions, other\] in primary  | less than Euro  |
|            | packages net weight 1 kg or less     | 0.12/kg         |
+------------+--------------------------------------+-----------------+

## Marketing

Marketing procedures for GMO soybeans have not been changed officially.
However, the amendments to the Federal Law on Protection of Consumers'
Rights that were adopted in December 2004 stipulate that information on
the presence of GMOs or the presence of materials derived from GMOs must
be provided on the labels of all food products. However, neither the
regulations, nor the GMO presence thresholds were provided. Thus, large
food processing companies have not been using soybeans in order to avoid
consumer groups' complaints about violation of labeling regulations. As
for feeds, in the course of administrative reform, the commission for
the registration of GMO feeds was dismissed and has not yet restarted
work, causing problems for imports of feeds containing soybeans and
corn.

## Vegetable Oil Tables

### Sunflowerseed Oil

### Table 21. PSD, Sunflowersed Oil, 1,000 Metric Tons

  -------------------- ----------------- ---------- ---------- ----------- -------------- -----------
  **PSD Table**                                                                           

  **Country**          **Russian                                                          
                       Federation**                                                       

  **Commodity**        **Oil,                                              (1000          
                       Sunflowerseed**                                     MT)(PERCENT)   

                       2003              Revised    2004       Estimate    2005           Forecast

                       USDA Official     Post       USDA       Post        USDA Official  Post
                       \[Old\]           Estimate   Official   Estimate    \[Old\]        Estimate
                                         \[New\]    \[Old\]    \[New\]                    \[New\]

  **Market Year                          10/2003               10/2004                    10/2005
  Begin**                                                                                 

  Crush                4000              4000       4250       4450        0              4450

  Extr. Rate, 999.9999 0,395             0,395      0,4        0,3932584   0              0,3932584

  Beginning Stocks     25                25         45         45          45             45

  Production           1580              1580       1700       1750        0              1750

  MY Imports           178               178        160        150         0              150

  MY Imp. from U.S.    0                 0          0          0           0              0

  MY Imp. from the EC  0                 0          0          0           0              0

  TOTAL SUPPLY         1783              1783       1905       1945        45             1945

  MY Exports           136               136        135        170         0              190

  MY Exp. to the EC    0                 0          0          0           0              0

  Industrial Dom.      310               310        410        420         0              435
  Consum                                                                                  

  Food Use Dom.        1272              1272       1285       1280        0              1290
  Consump.                                                                                

  Feed Waste Dom.      20                20         30         30          0              30
  Consum                                                                                  

  TOTAL Dom.           1602              1602       1725       1730        0              1755
  Consumption                                                                             

  Ending Stocks        45                45         45         45          0              0

  TOTAL DISTRIBUTION   1783              1783       1905       1945        0              1945
  -------------------- ----------------- ---------- ---------- ----------- -------------- -----------

### Table 22. Export Trade Matrix, Sunflowerseed Oil, 1,000 Metric Tons

  ------------------------- --------------- ----------------- --------------
  **Export Trade Matrix**                                     

  **Country**               Russian                           
                            Federation                        

  **Commodity**             Oil,                              
                            Sunflowerseed                     

  Time Period               Oct/Sep         Units:            1,000 MT

  Exports for:              2003                              **2004**

  U.S.                      0               U.S.              

  Others                                    Others            

  Algeria                   39              Turkey            38

  Greece                    14              Italy             23

  Italy                     12              Greece            17

  Kazakhstan                10              Spain             15

  Turkey                    10              France            10

  Egypt                     8               Syria             8

  Georgia                   8               Lebanon           6

  Spain                     7               Armenia           5

  Netherlands               5               Cyprus            3

  Albania                   5               Kazakhstan        3

  Total for Others          118                               128

  Others not Listed         18                                42

  Grand Total               136                               170
  ------------------------- --------------- ----------------- --------------

### Table 23. Import Trade Matrix, Sunflowerseed Oil, 1,000 Metric Tons

+------------------------+-------------+----------------+-------------+
| #####                  |             |                |             |
| ## Import Trade Matrix |             |                |             |
+------------------------+-------------+----------------+-------------+
| **Country**            | Russian     |                |             |
|                        | Federation  |                |             |
+------------------------+-------------+----------------+-------------+
| **Commodity**          | Oil,        |                |             |
|                        | Su          |                |             |
|                        | nflowerseed |                |             |
+------------------------+-------------+----------------+-------------+
| Time Period            | Oct/Sep     | Units:         | 1,000 MT    |
+------------------------+-------------+----------------+-------------+
| Imports for:           | 2003        |                | **2004**    |
+------------------------+-------------+----------------+-------------+
| U.S.                   |             | U.S.           |             |
+------------------------+-------------+----------------+-------------+
| Others                 |             | Others         |             |
+------------------------+-------------+----------------+-------------+
| Ukraine                | 101         | Ukraine        | 75          |
+------------------------+-------------+----------------+-------------+
| Argentine              | 31          | Argentina      | 15          |
+------------------------+-------------+----------------+-------------+
| Moldova                | 13          | Romania        | 13          |
+------------------------+-------------+----------------+-------------+
| Hungary                | 11          | Hungary        | 12          |
+------------------------+-------------+----------------+-------------+
| Romania                | 8           | Moldova        | 8           |
+------------------------+-------------+----------------+-------------+
| Germany                | 2           |                |             |
+------------------------+-------------+----------------+-------------+
|                        |             |                |             |
+------------------------+-------------+----------------+-------------+
|                        |             |                |             |
+------------------------+-------------+----------------+-------------+
|                        |             |                |             |
+------------------------+-------------+----------------+-------------+
|                        |             |                |             |
+------------------------+-------------+----------------+-------------+
| Total for Others       | 166         |                | 123         |
+------------------------+-------------+----------------+-------------+
| Others not Listed      | 12          |                | 27          |
+------------------------+-------------+----------------+-------------+
| Grand Total            | 178         |                | 150         |
+------------------------+-------------+----------------+-------------+

### Soybean Oil

### Table 24. PSD, Soybean Oil, 1,000 Metric Tons

+--------------------+-----+---+--------+------+-------+-------+--------+
| ####### PSD Table  |     |   |        |      |       |       |        |
+--------------------+-----+---+--------+------+-------+-------+--------+
| **Country**        | **R |   |        |      |       |       |        |
|                    | uss |   |        |      |       |       |        |
|                    | ian |   |        |      |       |       |        |
|                    | Fed |   |        |      |       |       |        |
|                    | era |   |        |      |       |       |        |
|                    | tio |   |        |      |       |       |        |
|                    | n** |   |        |      |       |       |        |
+--------------------+-----+---+--------+------+-------+-------+--------+
| **Commodity**      | **O |   |        |      |       | (1000 |        |
|                    | il, |   |        |      |       | MT    |        |
|                    | Soy |   |        |      |       | )(PER |        |
|                    | bea |   |        |      |       | CENT) |        |
|                    | n** |   |        |      |       |       |        |
+--------------------+-----+---+--------+------+-------+-------+--------+
|                    | 2   |   | R      | 2004 | Est   | 2005  | Fo     |
|                    | 003 |   | evised |      | imate |       | recast |
+--------------------+-----+---+--------+------+-------+-------+--------+
|                    | U   |   | Post   | USDA | Post  | USDA  | Post   |
|                    | SDA |   | Es     | Offi | Est   | Off   | Es     |
|                    | Of  |   | timate | cial | imate | icial | timate |
|                    | fic |   | \      | \[O  | \[    | \[    | \      |
|                    | ial |   | [New\] | ld\] | New\] | Old\] | [New\] |
|                    | \   |   |        |      |       |       |        |
|                    | [Ol |   |        |      |       |       |        |
|                    | d\] |   |        |      |       |       |        |
+--------------------+-----+---+--------+------+-------+-------+--------+
| **Market Year      |     |   | 1      |      | 10    |       | 1      |
| Begin**            |     |   | 0/2003 |      | /2004 |       | 0/2005 |
+--------------------+-----+---+--------+------+-------+-------+--------+
| Crush              | 379 |   | 379    | 430  | 510   | 0     | 505    |
+--------------------+-----+---+--------+------+-------+-------+--------+
| Extr. Rate,        | 0   |   | 0      | 0,1  | 0,    | 0     | 0,     |
| 999.9999           | ,13 |   | ,13984 | 4884 | 14706 |       | 148515 |
|                    | 984 |   |        |      |       |       |        |
+--------------------+-----+---+--------+------+-------+-------+--------+
| Beginning Stocks   | 25  |   | 25     | 10   | 10    | 10    | 10     |
+--------------------+-----+---+--------+------+-------+-------+--------+
| Production         | 53  |   | 53     | 64   | 75    | 0     | 75     |
+--------------------+-----+---+--------+------+-------+-------+--------+
| MY Imports         | 98  |   | 98     | 90   | 80    | 0     | 70     |
+--------------------+-----+---+--------+------+-------+-------+--------+
| MY Imp. from U.S.  | 0   |   | 0      | 50   | 0     | 0     | 0      |
+--------------------+-----+---+--------+------+-------+-------+--------+
| MY Imp. from the   | 100 |   | 80     | 100  | 50    | 0     | 50     |
| EC                 |     |   |        |      |       |       |        |
+--------------------+-----+---+--------+------+-------+-------+--------+
| TOTAL SUPPLY       | 176 |   | 176    | 164  | 165   | 10    | 155    |
+--------------------+-----+---+--------+------+-------+-------+--------+
| MY Exports         | 1   |   | 1      | 1    | 0     | 0     | 0      |
+--------------------+-----+---+--------+------+-------+-------+--------+
| MY Exp. to the EC  | 0   |   | 0      | 0    | 0     | 0     | 0      |
+--------------------+-----+---+--------+------+-------+-------+--------+
| Industrial Dom.    | 40  |   | 40     | 30   | 30    | 0     | 25     |
| Consum             |     |   |        |      |       |       |        |
+--------------------+-----+---+--------+------+-------+-------+--------+
| Food Use Dom.      | 125 |   | 125    | 123  | 125   | 0     | 120    |
| Consump.           |     |   |        |      |       |       |        |
+--------------------+-----+---+--------+------+-------+-------+--------+
| Feed Waste Dom.    | 0   |   | 0      | 0    | 0     | 0     | 0      |
| Consum             |     |   |        |      |       |       |        |
+--------------------+-----+---+--------+------+-------+-------+--------+
| TOTAL Dom.         | 165 |   | 165    | 153  | 155   | 0     | 145    |
| Consumption        |     |   |        |      |       |       |        |
+--------------------+-----+---+--------+------+-------+-------+--------+
| Ending Stocks      | 10  |   | 10     | 10   | 10    | 0     | 10     |
+--------------------+-----+---+--------+------+-------+-------+--------+
| TOTAL DISTRIBUTION | 176 |   | 176    | 164  | 165   | 0     | 155    |
+--------------------+-----+---+--------+------+-------+-------+--------+

Exports of soybean oil are less than 1,000 metric tons.

### Table 25. Import Trade Matrix, Soybean Oil, 1,000 Metric Tons

  ------------------------- ------------ ------------------ --------------
  **Import Trade Matrix**                                   

  **Country**               Russian                         
                            Federation                      

  **Commodity**             Oil, Soybean                    

  Time Period               Oct/Sep      Units:             1,000 MT

  Imports for:              2003                            **2004**

  U.S.                      0            U.S.               0

  Others                                 Others             

  Netherlands               26           Netherlands        25

  Germany                   19           Brazil             18

  Brazil                    14           Germany            15

  Argentina                 5            Argentina          4

  Korea, South              4                               

                                                            

                                                            

                                                            

                                                            

                                                            

  Total for Others          68                              62

  Others not Listed         30                              18

  Grand Total               98                              80
  ------------------------- ------------ ------------------ --------------

### Rapeseed Oil

### Table 26. PSD, Rapeseed Oil, 1,000 Metric Tons

  -------------------- -------------- ----------- ----------- ----------- -------------- -----------
  **PSD Table**                                                                          

  **Country**          **Russian                                                         
                       Federation**                                                      

  **Commodity**        **Oil,                                             (1000          
                       Rapeseed**                                         MT)(PERCENT)   

                       2003           Revised     2004        Estimate    2005           Forecast

                       USDA Official  Post        USDA        Post        USDA Official  Post
                       \[Old\]        Estimate    Official    Estimate    \[Old\]        Estimate
                                      \[New\]     \[Old\]     \[New\]                    \[New\]

  **Market Year                       10/2003                 10/2004                    10/2005
  Begin**                                                                                

  Crush                124            124         105         215         0              180

  Extr. Rate, 999.9999 0,3629032      0,3629032   0,3809523   0,3720930   0              0,3611111

  Beginning Stocks     0              0           0           0           0              15

  Production           45             45          40          80          0              65

  MY Imports           5              5           10          5           0              0

  MY Imp. from U.S.    0              0           0           0           0              0

  MY Imp. from the EC  0              0           0           0           0              0

  TOTAL SUPPLY         50             50          50          85          0              80

  MY Exports           0              0           0           0           0              0

  MY Exp. to the EC    0              0           0           0           0              0

  Industrial Dom.      18             18          15          35          0              40
  Consum                                                                                 

  Food Use Dom.        32             32          35          35          0              35
  Consump.                                                                               

  Feed Waste Dom.      0              0           0           0           0              0
  Consum                                                                                 

  TOTAL Dom.           50             50          50          70          0              75
  Consumption                                                                            

  Ending Stocks        0              0           0           15          0              5

  TOTAL DISTRIBUTION   50             50          50          85          0              80
  -------------------- -------------- ----------- ----------- ----------- -------------- -----------

### Palm Oil

### Table 27. PSD, Palm Oil, 1,000 Metric Tons

+---------------------+-----+---+-----+---+-------+-------+------+-------+
| ####### PSD Table   |     |   |     |   |       |       |      |       |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| **Country**         | **R |   |     |   |       |       |      |       |
|                     | uss |   |     |   |       |       |      |       |
|                     | ian |   |     |   |       |       |      |       |
|                     | Fed |   |     |   |       |       |      |       |
|                     | era |   |     |   |       |       |      |       |
|                     | tio |   |     |   |       |       |      |       |
|                     | n** |   |     |   |       |       |      |       |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| **Commodity**       | **O |   |     |   | (1000 |       |      |       |
|                     | il, |   |     |   | HA)   |       |      |       |
|                     | Pal |   |     |   | (1000 |       |      |       |
|                     | m** |   |     |   | T     |       |      |       |
|                     |     |   |     |   | REES) |       |      |       |
|                     |     |   |     |   | (1000 |       |      |       |
|                     |     |   |     |   | MT)   |       |      |       |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
|                     | 2   |   | R   |   | 2004  | Est   | 2005 | For   |
|                     | 003 |   | evi |   |       | imate |      | ecast |
|                     |     |   | sed |   |       |       |      |       |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
|                     | U   |   | P   |   | USDA  | Post  | USDA | Post  |
|                     | SDA |   | ost |   | Off   | Est   | Offi | Est   |
|                     | Of  |   | Es  |   | icial | imate | cial | imate |
|                     | fic |   | tim |   | \[    | \[    | \[O  | \[    |
|                     | ial |   | ate |   | Old\] | New\] | ld\] | New\] |
|                     | \   |   | \   |   |       |       |      |       |
|                     | [Ol |   | [Ne |   |       |       |      |       |
|                     | d\] |   | w\] |   |       |       |      |       |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| **Market Year       |     |   | 1   |   |       | 10    |      | 10    |
| Begin**             |     |   | 0/2 |   |       | /2004 |      | /2005 |
|                     |     |   | 003 |   |       |       |      |       |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| Area Planted        | 0   |   | 0   |   | 0     | 0     | 0    | 0     |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| Area Harvested      | 0   |   | 0   |   | 0     | 0     | 0    | 0     |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| Trees               | 0   |   | 0   |   | 0     | 0     | 0    | 0     |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| Beginning Stocks    | 29  |   | 29  |   | 30    | 30    | 32   | 15    |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| Production          | 0   |   | 0   |   | 0     | 0     | 0    | 0     |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| MY Imports          | 400 |   | 400 |   | 410   | 380   | 0    | 400   |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| MY Imp. from U.S.   | 0   |   | 0   |   | 0     | 0     | 0    | 0     |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| MY Imp. from the EC | 0   |   | 0   |   | 0     | 0     | 0    | 0     |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| TOTAL SUPPLY        | 429 |   | 429 |   | 440   | 410   | 32   | 415   |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| MY Exports          | 0   |   | 0   |   | 0     | 0     | 0    | 0     |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| MY Exp. to the EC   | 0   |   | 0   |   | 0     | 0     | 0    | 0     |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| Industrial Dom.     | 130 |   | 130 |   | 135   | 135   | 0    | 135   |
| Consum              |     |   |     |   |       |       |      |       |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| Food Use Dom.       | 269 |   | 269 |   | 273   | 260   | 0    | 260   |
| Consump.            |     |   |     |   |       |       |      |       |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| Feed Waste          | 0   |   | 0   |   | 0     | 0     | 0    | 0     |
| Consumption         |     |   |     |   |       |       |      |       |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| TOTAL Dom.          | 399 |   | 399 |   | 408   | 395   | 0    | 395   |
| Consumption         |     |   |     |   |       |       |      |       |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| Ending Stocks       | 30  |   | 30  |   | 32    | 15    | 0    | 20    |
+---------------------+-----+---+-----+---+-------+-------+------+-------+
| TOTAL DISTRIBUTION  | 429 |   | 429 |   | 440   | 410   | 0    | 415   |
+---------------------+-----+---+-----+---+-------+-------+------+-------+

### Table 28. Import Trade Matrix, Palm Oil, 1,000 Metric Tons

+------------------------+-------------+----------------+-------------+
| #####                  |             |                |             |
| ## Import Trade Matrix |             |                |             |
+------------------------+-------------+----------------+-------------+
| **Country**            | Russian     |                |             |
|                        | Federation  |                |             |
+------------------------+-------------+----------------+-------------+
| **Commodity**          | Oil, Palm   |                |             |
+------------------------+-------------+----------------+-------------+
| Time Period            | Oct/Sep     | Units:         | 1,000 MT    |
+------------------------+-------------+----------------+-------------+
| Imports for:           | 2003        |                | **2004**    |
+------------------------+-------------+----------------+-------------+
| U.S.                   |             | U.S.           |             |
+------------------------+-------------+----------------+-------------+
| Others                 |             | Others         |             |
+------------------------+-------------+----------------+-------------+
| Malaysia               | 214         | Malaysia       | 190         |
+------------------------+-------------+----------------+-------------+
| Indonesia              | 105         | Indonesia      | 95          |
+------------------------+-------------+----------------+-------------+
| Netherlands            | 27          | Netherlands    | 30          |
+------------------------+-------------+----------------+-------------+
| Thailand               | 15          | Vietnam        | 25          |
+------------------------+-------------+----------------+-------------+
| Sweden                 | 13          |                |             |
+------------------------+-------------+----------------+-------------+
| Germany                | 9           |                |             |
+------------------------+-------------+----------------+-------------+
| Denmark                | 6           |                |             |
+------------------------+-------------+----------------+-------------+
| Belgium                | 6           |                |             |
+------------------------+-------------+----------------+-------------+
|                        |             |                |             |
+------------------------+-------------+----------------+-------------+
|                        |             |                |             |
+------------------------+-------------+----------------+-------------+
| Total for Others       | 395         |                | 340         |
+------------------------+-------------+----------------+-------------+
| Others not Listed      | 5           |                | 40          |
+------------------------+-------------+----------------+-------------+
| Grand Total            | 400         |                | 380         |
+------------------------+-------------+----------------+-------------+