Sunflower seed processing declining in Ukraine – APK-Inform




According to APK-Inform, in November, sunflower seed processing in Ukraine decreased for the second month in a row to about 1 mln tonnes (-11% m/m). IN October, the processing volumes decreased due to unclear future of seaports functioning. In November, the processing declined amid limits on electricity consumption at industrial enterprises and massive missile attacks on critical infrastructure of Ukraine.

In December, sunflower seed processing may decrease further amid new missile attacks. In the first half of the month, about 37% of plants were temporary stopped (excluding plants from temporary occupied areas).

Electricity problems affected the functioning of the ports that slowed down the handling and shipments. Queues of road and rail transport increased in areas close to the ports.

In September-November 2022/23 MY, Ukraine processed about 3.3 mln tonnes of sunflower seed, or almost one-third of the total volume forecast for the current season (10.3 mln tonnes, -11% y/y).

“Given sharp decline of sunflower seed supply in 2022/23 MY and critical situation with electricity, the forecast of sunflower seed processing may be reduced. We can say that the supply and demand balance will be tough in the second half of the season due to high export of sunflower seed”, – analyst of APK-Inform Svitlana Kirichok said.

She added that Ukraine had exported almost 0.9 mln tonnes of sunflower seed in September-November 2022/23 MY. It is a record for this period.