Ukraine Sets Record-Low Sunflower Processing Volume in September 2024

In a significant development within the agricultural sector, Ukraine has reported its lowest sunflower seed processing volume in almost a decade. According to APK-Inform, in September 2024, the country processed approximately 861 thousand tonnes of sunflower seed, marking the lowest figure since the 2014/15 marketing year. This decline is a major concern for the sunflower oil industry, given Ukraine's pivotal role as a global producer and exporter.

One key factor behind this drop is the formation of the raw material base, with disruptions in processing attributed to ongoing logistical and economic challenges. This year’s figures are nearly on par with last September’s processing volumes, which saw a similar decline of about 1%. However, the circumstances leading to this dip have evolved. In 2023, companies faced difficulties due to the suspension of Odesa ports, which affected exports, while in 2024, the primary issue is raw material shortages. Despite these challenges, the price of sunflower seeds has seen an uptick, reaching its highest level since February 2022, fluctuating between 22,000 and 23,800 UAH per tonne.

Farmers are opting to hold onto their crops, anticipating a potential price rise for the 2024 harvest due to lower production. This trend is further fueled by a cautious approach in light of reduced sunflower crop expectations for the upcoming year.

For the global markets, this reduction in sunflower seed processing may lead to tighter supplies of sunflower oil, affecting prices and availability. Ukraine’s role as a major supplier means that these developments will likely have a ripple effect, influencing commodity prices and trade dynamics across the world.

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