- Capacity Expansion: Exoil Group’s new soybean and rapeseed plant is set to double total oilseed processing output from 2026, with potential annual value up to 50 billion rubles.
- Margin Compression: Southern drought, export duties on oil and meal, inflationary costs, and high interest rates are squeezing processors’ profitability, keeping many near breakeven.
- Bearish Outlook for Processors: Stronger bargaining power for farmers, limited raw material availability, and unfavorable currency conditions point to continued margin pressure and elevated competition for oilseeds in 2026.
Exoil Group Capacity and Operations Update
Exoil Group operated its sunflower processing facility at full capacity throughout 2025, according to CEO Nikolai Zhirnov. The company completed construction of a new soybean and rapeseed processing plant in 2025, with raw material commissioning launched in December. Once fully ramped in 2026, the new facility is expected to double the group’s overall oilseed processing volumes, with potential annual output value estimated at up to 50 billion rubles.
Margin Pressures and Market Conditions
Zhirnov described 2025 as an extremely challenging year for oilseed processors, with similarly difficult conditions anticipated in 2026. Drought in key southern growing regions is constraining oilseed supply and pushing up procurement costs, while export duties on oil and meal continue to erode vertical margins. Processors are also contending with inflation in operating expenses, unfavorable dollar exchange rates for exporters, and elevated key interest rates, all of which intensify financial strain, particularly for companies balancing existing utilization with new capital projects.
Industry Outlook and Competitive Dynamics
Market power has shifted toward agricultural producers, leaving many crushing facilities operating near breakeven. The addition of new soybean and rapeseed crushing capacity in an environment of limited raw material availability and weak export economics is likely to heighten competition for feedstock and further compress crush margins. Barring a meaningful improvement in oilseed supply or export profitability, processors are expected to prioritize survival and cost control over growth, underscoring a bearish outlook for soybeans and rapeseed processors through 2026.
Key Financial and Volume Indicators
| Metric | Detail |
|---|---|
| New Plant Focus | Soybeans & rapeseed |
| Commissioning Start | December 2025 (raw material commissioning) |
| 2026 Capacity Impact | Expected to double Exoil Group’s total oilseed processing output |
| Annual Output Value (Estimated) | Up to 50 billion rubles |
| 2025 Sunflower Facility Utilization | Maintained at full capacity |
| Margin Environment | Breakeven operations common due to drought, export duties, and high financing costs |
Source: Market Data
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