Russia About to Overtake Ukraine as the Top Exporter of Sunflower Oil
Russia About to Overtake Ukraine as the Top Exporter of Sunflower Oil

Russia About to Overtake Ukraine as the Top Exporter of Sunflower Oil

  • 07-Feb-2023 6:39 PM
  • Journalist: Rene Swann

Kyiv: Prior to last year, Ukraine was considered the world's biggest exporter of Sunflower Oil, accounting for up to half of that trade volume, with much of it going to major consumers of vegetable oil, like India and EU nations. However, due to restrictions in the domestic market, Ukraine has recently risen to the top of the less lucrative sunflower seed trade, which has concerned the nation's farm ministry. The 2022 Ukrainian grain and oilseed harvests were severely interrupted by Russia's invasion of Ukraine a year previous, falling by more than 40.1% and 25.2% in the year 2023, respectively.

Even though Ukraine had been largely constant in the supply of Sunflower Oil in previous months due to the Black Sea export agreement, exports have also decreased. Increased exports of sunflower Oil seeds are unacceptable since they not only reduce Ukraine's potential export revenue but also run the risk of forcing the closure of factories that process oilseeds, causing permanent market share loss and job losses. The U.S. Department of Agriculture estimates that 14.2% of Ukrainians work in agriculture.

According to U.S. Department of Agriculture (USDA) projections, Russia will surpass Ukraine in Sunflower Oil exports in the 2022–2023 marketing year, making up 35.1% of trade compared to 33.9% for Ukraine. These shares were 28.2% and 50.1%, respectively, three years ago. However, Ukraine has seen sharp decreases in sunflower production backed by the conflict, significantly impacting operations at Ukrainian Sunflower Oil refineries. Furthermore, Russia has seen increases in Sunflower Oil production and related products during the past few years, along with increases in other oilseed and grain harvests.

In addition, Russian farmers have reduced the space devoted to other crops, including barley, oats, rye, and millet, to make room for the expansion of oilseed and corn. Furthermore, the USDA's estimations of Russian crops presented in this article take into account pre-war borders and are unlikely to include any captured Ukrainian territory. Major Russian grain and Sunflower oil seed crops' total harvested area has increased by around 1.6% annually during the last five years.

As per the ChemAnalyst database, the export of Sunflower Oil is likely to increase from Russia as Russia is likely to gain an export lead.

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