Ukrainian oil extraction plants unable to run at full power and execute export contracts

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APK-Inform

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As of late October, Ukrainian oil extraction plants were only half-loaded due to the lack of oilseeds, declared reported the General Director at the association Ukroliyaprom, Stepan Kapshuk.

“There are about 118 oil extraction plants in Ukraine. Their common processing capacity is 23 mln tonnes. They need 50 thsd tonnes of sunflower seed per day. It is 750 mln USD in the current prices. However, there is no oilseed. Plants are half-loaded. We see the growth of sunflower seed export and it could increase further. Ukraine exported 34 thsd tonnes of sunflower seed in September”, - he said.

S.Kapshuk added that there is already no rapeseed on the Ukrainian market. Ukraine produced 2.5 mln tonnes of rapeseed and processed only 200 thsd tonnes, the rest was exported. The same situation is for soybean. Farmers harvested 2 mln tonnes of soybean as of October 23 and only about 200 thsd tonnes were processed.

“In 2019, Ukraine imported Brazilian soybean for processing for the first time. I do not understand the situation. We exported our soybean at 318 USD/t and then we import it from Brazil”, - S.Kapshuk reminded.

He pointed out that Ukraine are losing its importers of oils due to higher production costs.   

“India refuses to buy oil at the price exceeding 900 USD/t. The share of India in total export of Ukrainian oils is 34%. Ukraine managed to supply its oilseed products to 124 countries under tough competition, while a simple failure to purchase sunflower seed on the inner market disrupts execution of the contract”, - S.Kapshuk added.
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