According to APK-Inform forecasts, in 2016/17 MY Ukraine will decrease the processing volumes of rapeseed for oil production to 300 thsd tonnes, down 50 thsd tonnes or 16% compared with the previous season record. Therefore, the production of rapeseed oil will decrease to 130 thsd tonnes (down 17%).
In the beginning of a new season many companies actively discussed the profitability of rapeseed processing in 2016/17 MY, due to low demand for rapeseed oil, especially from China. Some market operators which began processing rapeseed in early July 2016, reported that Italy (main country-importer) was ready to buy the product since September-October of 2016 only.
Most large-scale processing enterprises reported that they would not run rapeseed processing in the season-2016/17, and plan to export the oilseed as raw material. Changes in taxation system, as well as unfavorable price situation on the export market rapeseed oil in the beginning of the season, became the major reasons for such situation development.
You can receive more detailed information about the main trends and developments of the Ukrainian market of rapeseed and its by-products from the article "Profitability of rapeseed processing in Ukraine in the season-2016/17" at the magazine Agrimarket Weekly #31 dd. August 8, 2016.
