Ukraine processed about 4.48 million tons of sunflower seeds in the four months of the 2022/2023 marketing year (MY, September-August), the lowest since 2015/2016 MY.
According to the APK-Inform agency’s website on Monday, oilseed processing was slowed by the crisis in the country’s energy sector, limits on electricity use and deliberate delays by the Russian side in inspecting vessels passing through the “grain corridor.”
According to the agency, a total of 10.4 million tons of sunflower may be processed in Ukraine in 2022/2023 MY, which is 10% less than the previous season, while the export of sunflower oil may decrease by 8% compared to the previous season and amount to 4.15 million tons, the lowest since 2015/2016 MY.
At the same time, a separate factor affecting oilseeds processing and sunflower oil exports in the current season was the growth of exports of sunflower seeds without processing – for September-December 2022, almost 1.2 million tons of them were exported from Ukraine, which was half of the analysts’ forecast for the entire MY.
“This figure is atypically high for the industry, it contributes to a significant increase in competition for raw materials, higher prices for them, even when the price of demand for sunflower oil decreases, and as a result – a more rapid reduction of sunflower supply in the market,” – the agency quotes its analyst Svetlana Kirichok.
She also stressed that one should not expect a substantial increase in processing, at least in February-March 2023, as the situation in the energy sector of Ukraine remains unchanged and the limits on electricity consumption are still in force. In addition, in March the “grain agreement” expires, which will require a new prolongation.
As reported, Ukraine from January 1-15, 2023 exported 93 thousand tons of sunflower seeds, which is 2.5 times less compared to the same period last year, while the export of sunflower oil halved to 148 thousand tons.
