External factors of the development of oil and fat refining enterprises

Mykola Valeriyovych Subota


This article summarizes the main trends in oil and fat industry, that have been formed under the influence of environmental factors. The rapid development of the industry over the past decades is caused by the influence of factors that characterize the global changes in the consumption of food. The dynamics of demographic changes in the world, which forms the main subject on the consumer market oil, is investigated.

It is proved that the population growth has led to an increase in potential of oil production in Ukraine and its turning into the main supplier of oil to the world market.

 Leading positions of Ukraine on the world market have intensified processes in the agricultural sector and changed the structure of agricultural crops towards growth of sunflower acreage. The development of selection has led to withdrawal of high-yielding varieties of seeds and spread of crops in northern regions of Ukraine. All these facts have contributed to the growth of the resource base for oil and fat enterprises notwithstanding a number of negative effects on the quality of Land Resources of Ukraine.

This situation has led to an increase in capacity of oil and fat industry and to further decrease of raw materials for capacity load, which, in turn, has led to the sunflower seeds price growth and a higher profit margin for sunflower seeds  in comparison with sunflower oil. Imbalances in the "producer-processor" chain can have a number of negative consequences for the industry and the economy in whole. One way to resolve imbalances is to coordinate procurement policies of oil producers-members of “Ukroliyaprom" association and those producers who are beyond the association. Cooperation between both oil producers and sunflower seeds producers will maintain rates of return of all participants of the production chain in balance, thus ensuring economic efficiency of agricultural production, food industry and contribution to an increase in tax revenues in the state budget. 


enterprise; oil and fat industry; export; price factors; profitability

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

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