In Ukraine, there is a shortage of sunflower oil: why prices have risen and what will happen next

Sunflower Oil Shortage in Ukraine

According to data from the Electronic Grain Exchange of Ukraine, there is a shortage of sunflower oil offers in the country due to limited sunflower supply and many factories switching to processing soybeans and rapeseed. This has led to rising prices in the domestic market for crude sunflower oil.

'Against this backdrop, domestic demand prices for crude sunflower oil have risen to 58000-60000 UAH/ton under FCA-factory conditions, which is equivalent to 1160-1200 $/ton, while export demand prices are 1135-1145 $/ton for supplies to the port in August and 1100 $/ton for supplies in September,'

the message states.

According to the grain exchange data, small processing enterprises have increased the cost of sunflower to 27500-28000 Hryvnias per ton when processing raw materials directly at the production site.

Global Sunflower Production

It is forecasted that global sunflower production in the next marketing year will increase by 4.2 million tons, reaching 59.3 million tons. Russia plans to achieve a record production volume of 17.8 million tons. In this context, Ukrainian companies plan to compete with Russian ones in the Indian market, as EU demand for Ukrainian oil may decrease.

At the same time, Ukrainian producers are facing competition from Kazakhstan, which fully satisfies China's needs due to efficient transportation logistics.

Currently, Ukraine is experiencing a shortage of sunflower oil due to limited sunflower supply and rising prices in the domestic market. In this context, Ukrainian producers are preparing to compete with Russians in international markets while simultaneously facing competition from Kazakhstan in the Chinese market.