"Asia Grains & Oils Conference in Tashkent", Tashkent, Uzbekistan
Sep 8, 2021

EU raising demand for Ukrainian sunflower seed amid weak export of sunflower oil – APK-Inform




According to APK-Inform, the demand for Ukrainian sunflower seed increased sizably on the external markets due to the sharply lower export of sunflower oil.

“Despite the fact that the shipments of sunflower seed as well as other products are limited by insufficient capacity of western border checkpoints, we have seen the sizable growth of sunflower seed export in the last two months”, – APK-Inform said.

According to preliminary data, in March-April, Ukraine exported about 125 mln tonnes of sunflower seed to the EU, up by almost 3 times compared to the volume shipped over the first half of the current season. Particularly, the export reached 110 thsd tonnes in April that turned to be the record high for this month since 2008/09 MY.

We expect the decline of the export to the EU further, as the market is becoming saturated with sunflower seed. Moreover, the new season for rapeseed processing is coming that will influence the demand from European crushers.

“Taking into account the current reality, we estimate the sunflower seed export at 350-400 thsd tonnes in May-August. Thus, the total export will reach about 750 thsd tonnes in 2021/22 MY (up 3 times y/y) that will be the multiyear maximum. The share of export will reach 3.4%. However, this volume is still insignificant compared to sunflower seed production in Ukraine. It will have no influence on domestic processing industry”, – the analysts explained.

At the same time, there was information that needed to be confirmed about “grey” export of sunflower seed at certain border checkpoints. It could be possible in the current reality. However, the reported volumes of “grey” export seemed to be unreal taking into account the capacity of functioning river ports and land border checkpoints.

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