Ukraine increases production and export of sunflower oil 25% in 2022-23 agricultural year

Ukraine increased production and export of sunflower oil 25.4% in the 2022-2023 agricultural year (September through August) compared to the previous season, Ukrainian media reported, citing the press service of the Ukroliyaprom association, Azernews reports, citing Interfax.

"One of the main features of the 2022-2023 agricultural year was a significant increase in the processing of sunflower seeds at domestic facilities after the ban on its import by some EU countries. This made it possible to significantly increase the processing of sunflower seeds within the country and, accordingly, the production and export of oil by 25.4% and sunflower meal by 27.3%," the association said.

Production and export of soybean oil increased 18%, while soybean meal increased 19.4%.

The association does not provide absolute figures.

During the first eight months of 2023, exports of sunflower seeds decreased 58% YoY, Ukroliyaprom said. As a result, processing has increased significantly in the country, leading to increased production and exports of high value-added products.

The association predicts that in the 2023-2024 season, production of the main types of oilseeds in Ukraine will increase 18.8%, mainly due to a 12.1% expansion in the planting area and an average 5.7% increase in yield.

The greatest increase in production at the beginning of the season is expected at 15% for sunflower seeds. "However, there were significantly smaller transition balances at the beginning of the 2023-2024 season versus the beginning of 2022-2023. Accordingly, supplies in 2023/2024 will be smaller, which requires urgent measures at the government level to maximize domestic processing and increase exports of products with a high added value. The issue of exporting sunflower oil through deep-sea ports also needs to be resolved," the press release said.

As reported, Ukroliyaprom expects that up to 5 million tonnes of sunflower oil could be produced in Ukraine in the 2023-24 season, while exports could reach 4.7 million tonnes.