Before the war in Ukraine, about 95-97% of the total volume of sunflower oil shipments from the country went by sea. Disruption of the main distribution chains had immediate and significant impact on domestic processing that stimulated traders to export sunflower seed instead of processed products, Irina Ozip, head of marketing department of APK-Inform noted during her speech at the online conference Sunflower Seed And Oil: New Reality On Global Market organized by APK-Inform on July 7.
"As a result, since the beginning of the war, the export of sunflower seed increased by almost 64 times compared to the same period of the previous season, while the shipments of sunflower oil decreased by 63% and meal – by 84%", – I. Ozip said.
Taking into account the adaptation of Ukrainian companies to new distribution chains, the geography of exports is being restored gradually. However, shipments to more distant countries are significantly limited by logistics and an increase in the delivery time and cost. Therefore, the EU and Turkey currently are the main markets for Ukrainian products.
In 2022/23 season, the production and export potential of sunflower oil may increase by 7% and 13% respectively. The development of the situation in the country, the increase of capacity of western border checkpoints and functioning sea ports will be the main factors affecting the dynamics of production and exports.
The possible unblocking of Ukrainian seaports will not result in the immediate restoration of pre-war volumes of sunflower oil shipments due to damage to the port infrastructure. Thus, land routes (railway and road) will remain the key transshipment points.