Decline in Sunflower Processing in Ukraine: Plants Shift to Rapeseed and Soy
In September, the volume of sunflower processing in Ukraine dropped to 560,000 tons, the lowest figure since July 2022. The reason behind this was a shortage of sunflower supply, forcing plants to switch to rapeseed and soy.
According to APK-Inform, most enterprises in September had to switch to processing rapeseed and soy due to constraints on sunflower supply. This change was facilitated by an increase in the supply of these crops on the domestic market following the imposition of export duties on September 4. Processors were accumulating sunflower stocks as farmers rushed to sell, fearing price drops amid a virtual export blockade.
The reduction in sunflower processing volumes and disruptions in its harvesting led to price recovery in October. This trend supported the increase in sunflower oil prices, fueled by demand in vegetable oil markets after the September-October deficit.
Despite the reduction in processing volumes, some experts forecast that the total processing volume of the three key oilseeds (sunflower, rapeseed, and soy) could rise to 16 million tons in the 2025/26 season. This increase depends on export duties on soy and rapeseed.
Amid the situation in Ukraine, sunflower yield in the Zaporizhzhia region reached a record low level of 1-5 quintals per hectare, compared to previous levels of 15-17 quintals per hectare. It is also reported that the level of Ukrainian sunflower oil exports has fallen to a three-year minimum.
| Period | Sunflower Processing (thousand tons) | Expected Processing Volume of Three Crops (million tons) |
|---|---|---|
| September 2023 | 560 | 16 (2025/26) |
