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 Mahamad Rodzi Abdul Ghani
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 Russian edible oil processor hopes to boost sales

28/8/02 (Europe Intelligence Wire): The agribusiness holding Yug Rusi, onof the main operators on the Russian market for vegetable and sunfloweroils, is looking to increase its sales by 10% to 15% on the strength ofnew sales policy, a holding press release says.The company intends to cut business ties with a majority of its Moscowdistributors, in particular one of the biggest - Bonus - which does 17% ofoverall sales for the agri-union. "The fate of Bonus will be shared by atleast six of eleven [Moscow] distributors", the release says.As marketing director for the trading house Yug Rusi Alexei Skorbovenkoexplained to Interfax, the changes being made to company sales policyreflect market difficulties. Russian producers, he said, had to increasesunflower prices due to last year's poor harvest, while foreign producers"literally flooded Russia with bottled oil." In these circumstances, YugRusi has decided to lower prices on its vegetable oil in order to "win byincreasing sales," he said.Since this year began, the agri-union has reduced its vegetable oil pricesby 12%, but Bonus and other Moscow distributors oversold it in otherregions, interfering in the work of the producer's local dealers,Skorbovenko said.Yug Rusi has near-future plans to leave in each federal district at leasttwo representative companies that will acquire oil 100% pre-paid. Salespolicy will be aimed at working with small and mid-sized wholesalers, aswell as with wholesalers that have the ability to do product shipment,which will allow for cutting product's trip to the end consumer andlowering its price, he said.Yug Rusi's oil extraction plant produces 87 million liters of bottledvegetable oil in the first half of this year, 180% more year-on- year. Theholding comprises sixteen agricultural product producers in the Rostovregion and Krasnodar territory. Various experts put the market share ofthe company's 'Zolotaya Semechka brand oil at from 20% to 30% of Russia'smarket for bottled vegetable oil.

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