Sunflower Seed Export Increase From Ukraine Calms Global Edible Oil Market
- 15-Mar-2023 2:57 PM
- Journalist: Jai Sen
Kyiv: Many of Ukraine's Sunflower Seed oil exports remain constrained by the war, but producers are sending out the raw seeds instead, stabilizing the global market for cooking oil. Black Sea Agricultural data shows that Ukraine exported 337,000 tonnes of Sunflower Seed oil in January, a significant decrease from the 611,000 tonnes exported in January 2022 before the war. In the early days of the Russian invasion, prices for Sunflower Seed oil and other cooking oils surged due to reduced shipments from Ukraine, the second-largest producer in the world behind Russia. Consumers scrambled to find alternatives.
Making oil at home by crushing seeds has become less popular among Ukrainian farmers in recent months. Large quantities of uncrushed seeds are instead being sent to international purchasers who handle the processing themselves. Ukrainian ports used to export Sunflower Seed oil are still essentially shut down, and the fighting has crippled the country's power and seed-crushing infrastructure. Earlier, the Russian invasion of Ukraine fundamentally altered the economic patterns around the prominent Sunflower market in that country. Before the war, much of that seed crushing was done inside Ukraine. The task is now being exported to the point that it has stabilized the global cooking oil, including the Sunflower Oil market, which became chaotic after Russia invaded Ukraine.
Ukraine recently claimed that Russia's proposal to only extend the wartime grain and edible oils, including the Sunflower Oil export agreement for 60 days, conflicts with the document that Turkey signed and the UN as guarantors. The grain agreement calls for at least 120 days of extension; therefore, Russia's position to only extend the agreement for 60 days is in violation of the agreement.
As per the ChemAnalyst database, it is anticipated that with more seeds now being exported from Ukraine via land and sea routes, European seed processors have been able to partially offset the loss of oil exports from the country, which has resulted in lower prices of Sunflower Oil globally.