Ukraine and Russia cover 80% of the global exports of sunflower oil

According to APK-Inform data the season-2016/17 for the Ukrainian and Russian markets of crude sunflower oil demonstrated record volumes of exports, due to high production volumes of the commodity. According to APK-Inform figures, Ukraine increased the supplies of sunflower oil on the foreign market by 28% compared with the previous season, in turn Russia increased the exports by 36%. So, it can be said that the market segment of sunflower oil in the Black Sea region develops in very active rates. 


During 11 months of the season-2016/17, Ukraine showed rather high level of sunflower oil exports, which became a record in the country`s history. But in the last month of the season, when it was possible to continue the upward trend, most oilseed processing plants stopped for scheduled maintenance works.

In the reporting season (September-July), Ukrainian oil-extraction enterprises produced over 6 mln tonnes of sunflower oil, due to the growth of sunflower seed harvest volumes. Since the country prefers exporting the major produced volumes rather than consume on the domestic market, APK-Inform analysts estimated the exports of sunflower oil at 5.75 mln tonnes, against 4.5 mln tonnes in the season-2015/16. It should be noted that during 11 months of the current season, Ukraine shipped nearly 5.5 mln tonnes on the global market. The export geography was quite extensive, and Ukraine sold sunflower oil to 125 countries. 


During three recent years, Russia demonstrated a rapid growth of the exports of crude sunflower oil, due to the similar growing trends in production of the commodity on the domestic market.

So, the record harvest of sunflower seed in 2016/17 MY in Russia, which APK-Inform analysts estimated at the level of 11 mln tonnes, and increasing of oilseed processing capacities in the country, allowed to oil-producing companies to produce 4.4 mln tonnes of crude sunflower oil (data for September-July + forecast for August). The figures broke a record, and exceeded the production rates in 2015/16 MY by 12.6%.

In turn, the domestic consumption of sunflower oil did not significantly change compared with the previous season, which allowed increasing the export volumes. Thus, in the season-2016/17 the exports of sunflower oil from Russia can reach 2.1 mln tonnes (up 36%), which will be a new record for the Russian oilseeds market.

However, Russian traders had to do much work to achieve the record export figures. In the beginning of the season, Turkey, which is the key consumer of Russian crude sunflower oil, increased the import duties on the product from 12% to 36%, and processed sunflower oil – from 50% to 67.5%. However, in the first half year Turkey imported almost 330 thsd tonnes of Russian sunflower oil (up 6.6% compared with the same period in the season-2015/16). Also, there was the second wild card which significantly affected the shipped volumes - on March 15, 2017, Turkey imposed the minimum value of sunflower oil at the sum of 1`500 USD/t. Market participants had to look for alternative distribution channels, which resulted in the April exports of sunflower oil (down 66.1% compared with March 2017, or 147.7 thsd tonnes), and Russia shipped the major volumes of sunflower oil to Egypt – 34.5 thsd tonnes. Generally, during 11 months of the season the supplies of Russian sunflower oil to Egypt totaled 306.5 thsd tonnes. In May 2017, Turkey cancelled the reporting trade restrictions. During 11 months of the season, Turkey imported 517.2 thsd tonnes of Russian sunflower oil.