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EFKO on a business mission to China

13.06.2024
EFKO on a business mission to China
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EFKO on a business mission to China
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The Oils and Fats Division of the EFKO Group took part in the VIII Russian-Chinese EXPO. Experts of the company negotiated with current and potential customers, discussed issues related to logistics and prices.


Supported by the Ministry of Industry and Trade of the Russian Federation, the event was held in Harbin as a part of the VIII Russian-Chinese EXPO.

This year marks the 75th anniversary of the establishment of diplomatic relations between China and Russia. Over three-quarters of a century, they have overcome difficulties and become even stronger.

China firmly holds the position of Russia's leading foreign trade partner, and our country ranked fourth in the People's Republic of China's export-import balance at the end of last year. In 2023, trade turnover increased by a quarter and set a new record — according to Chinese statistics, 240 billion dollars.

It is important to "keep your finger on the pulse" and strengthen your positions. In total, about 90 companies from 37 regions of Russia participated in the mission.

EFKO representatives conducted negotiations with the largest local producers and distributors.

According to Dmitry Puzanov, Head of Export Sales Department for China and Mongolia, since the beginning of 2024 we have seen a significant increase in sales of margarine products in China, even compared to the same indicators last year. Although there are difficulties for exporters — high taxes – 20-30% and lack of quotas for supplies on favorable terms.

“Russian food products are in great demand in China because they are natural and, unlike Chinese food products, do not use GMO raw materials in their production. Our margarine Ecouniversal is one of the top sellers. In the northern regions of China, it is used to make cakes and pies such as "medovik", or as they call it there — "Russian tiramisu", — says Dmitry Puzanov. — In the southern, densely populated provinces, our margarine is used for the industrial production of biscuit rolls with various fillings, as well as for toast bread”.

EFKO's Oils and Fats Division has been present in the Chinese market for more than 7 years, starting by supplying margarine products to the border regions of Heilongjiang Province.

At present, direct deliveries are made to customers not only in this province, but also in Manchuria, Fujian, Hubei, and the city of Shanghai — the list of delivery destinations in China will continue to expand.

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Dear partners!

In order to improve EFKO products and quality of service, as well as to better meet your needs, we ask you to answer a few questions.

In the Alekseevskaya Sloboda of the Belgorod province, where in the late 1820s, sunflower oil was produced for the first time in the Russian Empire, and the first oil mill in Russia was built.

During the years of the First World War, and then the Civil War, production was completely stopped. The restoration of the plant began only in 1923. The main focus of its work remained the processing of coriander and anise. In 1936, the second oil extraction plant in all of Russia was built in Alekseevka. Later, both enterprises were merged into one of the largest essential oil extraction complexes in the Soviet Union.

During the Great Patriotic War, the complex was almost destroyed. Restoration work, which began in 1943, continued until the end of 1948. In the post-war period, comprehensive reconstruction was carried out on many sections using the latest technological advancements. By the 1970s, the Alekseevsky essential oil extraction complex produced up to 80% of the world's coriander oil. For its achievements in production development, the development and implementation of advanced technology, by decree of August 14, 1972, the Supreme Soviet of the USSR awarded the plant the Order of the Badge of Honor.

Unfortunately, in the 1990s, the enterprise that brought fame and wealth to the people of Alekseevka fell into decline and practically collapsed. The revival of the enterprise began in 1994 with the arrival of a new team and the creation of the EFCO Group.

The enterprise underwent large-scale modernization of production and established a new management system. The company decided to return to its roots and resume the production of sunflower oil. Later, EFCO expanded the range and volume of products.

In 2002, a new business direction was opened, and the most modern plant for the production of specialized fats and margarines for the food industry, EFCO Food Ingredients, was launched in the city of Alekseevka, Belgorod region. A scientific and production laboratory was established at the plant, equipped to control product quality at all stages of production and conduct in-depth scientific research.

In 2002–2003, EFCO technologists mastered the most environmentally friendly process of vegetable oil processing – the 'dry' fractionation method, applied the technology of physical refining of oils and fats, and managed to create Russia's first cocoa butter substitute 'Ecolad,' milk fat substitute 'Ecolact,' solid confectionery fat 'Ekond,' soft confectionery fat 'Ekonfe,' universal margarines 'Ecouniversal,' frying shortenings 'Ecofri,' and the first domestic fats with minimal trans-isomers content – confectionery fats 'Econat.'

In 2005, the R&D center of the fats and oils division was created based on EFCO Food Ingredients, consisting of the Applied Research Center and the Pilot Plant Department. The center’s specialists are engaged in developing and testing fat products for healthy eating lines and innovative recipes, taking into account the needs of manufacturers.

In 2006, the company was the first in Russia to successfully pass an audit for compliance with the quality and safety requirements of the BRC (Global Standard for Food Safety) and the International Food Standard (IFS). Is this information relevant?

In 2008, the second plant for the production of specialized fats and margarines was launched in the port of Taman in the Krasnodar Territory, and the only deep-water sea terminal for food cargo in Russia was built.

The following year, the plant successfully passed certification for compliance with the quality and safety requirements of the British Retail Consortium (BRC) and the International Food Standard (IFS). International auditors awarded the company the highest compliance level – Grade AA. Is this information relevant?

In 2014, the company’s technologists created the first domestic equivalent of cocoa butter.

In 2015, the EFCO Group launched a project to create a unique fats and oils cluster in the Republic of Kazakhstan. Thanks to production modernization and the transfer of global technologies, the production of specialized fats and margarines meeting the highest international standards was established in a short time.

In 2016, EFCO opened its fourth site for the production of specialized fats and margarines at the Evdakovsky fats and oils plant in the Voronezh region.

In 2021, production capacity at the Taman port facility was increased – launching the world's first 'million-ton plant' for the production of specialized fats and margarines. Do we need this?

In 2023, the company launched the only shea nut processing plant in Russia.

Thanks to R&D and significant investments by domestic producers in developing their own infrastructure, primarily by EFCO, the share of imported producers in the Russian food ingredients market has decreased from 49% to 9% over the past 15 years and continues to decline.

Almost 200 years later, Alekseevka remains the largest center for vegetable oil processing in the country.

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