Sunflower seed stocks and processing capacities in western and central Ukraine sufficient to provide domestic needs and partial exports – APK-Inform

Source

APK-Inform

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As of February 1, 46% of the overall sunflower seed stocks in Ukraine was located in oblasts with ongoing military operations. Taking into account large damage to the infrastructure, some part of these stocks can be lost. At the same time, the volume of sunflower seed stocks in calm regions should be enough to cover domestic demand for sunflower oil this season and even to provide some exports.

“If the processing plants in 8 the most safe regions in western and partially central part of the country resume sunflower seed crushing, the average monthly processing volume will amount to 400-450 thsd tonnes, even if we exclude Poltava and Dnipropetrovsk oblasts. Roughly speaking, it is about 130-160 thsd tonnes of sunflower oil that is more than enough for domestic needs. We estimate the domestic monthly consumption of sunflower oil at about 45 thsd tonnes since the start of the season”, – analysts of APK-Inform said.

At the same time, there are such big problems as logistics, access to fuel, readiness of farmers to sell as well as processing plants to start working.

“We suppose that it is possible to resume sunflower oil export through western border to the EU by rail. It can push higher number of processing plants to resume operations”, – the experts said.

APK-Inform data shows that some processing plants in calm regions resumed sunflower seed purchasing in early March. Number of offers from farmers increased. However, they mainly offer small volumes.

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