In 2023-2024 marketing year, Ukraine processed 1.0 mln tonnes of rapeseed, which was 22.3% of the 2023 harvest, despite the fact that rapeseed is considered to be mainly export-oriented agricultural raw material, reports the association Ukroliyaprom.
“The export of rapeseed oil in July-June of 2023/24 MY reached the record level of over 420 thsd tonnes. Ukrainian rapeseed oil is confidently entering the markets of China, EU countries, Malaysia, Singapore and other countries. Positive dynamics is also observed in rapeseed meal,” the analysts said.
Experts pointed out the continued growth of soybean and meal exports, and, accordingly, their production and processing, especially in January-June 2024.
“The growth of domestic processing of seeds and soybeans, as well as a significant increase in exports of high value-added products, namely oil and meal, confirms the position of the Association on the need to create conditions for maximum processing of oilseeds at domestic facilities. Further development of the oil and fat industry of Ukraine is envisaged not so much in increasing the processing of sunflower seeds as in such oilseeds as soybeans and rapeseed, which are still considered export-oriented,” Ukroliyamprom emphasized and expressed hope for the support of the Ministry of Agrarian Policy and Food and the Ministry of Economy.
At the same time, the industry association is skeptical about the prospects for the oilseed harvest in the 2024 season in Ukraine. Experts noted that the oilseed market participants have different forecasts. Most of the players expect an increase in soybean production and a decrease in rapeseed production.
The production of sunflower seeds and oilseeds in general will be almost the same as in 2023/24 MY. However, the abnormal heat can significantly adjust all the forecasts, the industry association stated.
Agrotrade agricultural holding has started threshing winter rapeseed on 11 thou hectares in the 2024 season, the company’s press service reported on Facebook on Wednesday.
“We started harvesting this year as planned. The weather is favorable for us. Short-term rains in the Kharkiv region did not significantly interfere with the harvest, and the grain moisture content is at a basic level. We took care of the necessary resources and equipment in advance, so we have everything we need,” said Oleksandr Ovsyanyk, Director of the holding’s Agricultural Department.
According to the report, rapeseed threshing is already underway in Kharkiv and Chernihiv regions. Soon, the harvesting of this crop will begin in Sumy region. In total, it will last about three weeks.
The Agrotrade Group is a vertically integrated holding company with a full agro-industrial cycle (production, processing, storage and trade of agricultural products). It cultivates over 70 thousand hectares of land in Chernihiv, Sumy, Poltava and Kharkiv regions. Its main crops are sunflower, corn, winter wheat, soybeans and rapeseed. It has its own network of elevators with a simultaneous storage capacity of 570 thousand tons.
The group also produces hybrid seeds of corn and sunflower, barley, and winter wheat. In 2014, a seed plant with a capacity of 20 thousand tons of seeds per year was built on the basis of Kolos seed farm (Kharkiv region). In 2018, Agrotrade launched its own brand Agroseeds on the market.
Vsevolod Kozhemiako is the founder and CEO of Agrotrade.
Ukraine will be able to harvest more than 4 mln tonnes of rapeseed in the season-2024, UkrAgroConsult analytical agency forecasts.
“The State Statistics Service released the official data on the rapeseed harvest in 2023 – 4.2 mln tonnes (+26% compared to 2022/2023 MY), but the export and domestic processing rates prove that the official statistics need to be reassessed,” the analysts said.
They reminded that the export of rapeseed and processed products continues to be at the record pace even in the last months of the season. During the 10 months of the season, the country exported 3586.2 thsd tonnes of rapeseed (+5% compared to 2022/23 MY), 134.1 thsd tonnes in April; 406.1 thsd tonnes of rapeseed oil; 351.9 thsd tonnes of rapeseed meal.
Experts believe that the 2024 rapeseed harvest can also be forecasted on the basis of the revised estimates, according to which it may reach more than 4 mln tonnes.
“Weather remains the key factor in the yield formation. The impact of the cold wave and night frosts on the soil in early May is yet to be assessed, so in the future, the forecast of rapeseed harvest may be reduced,” UkrAgroConsult said.
The production of rapeseed in Ukraine in 2024 may reach 4.3 mln tonnes, up 4% from the previous estimate, but 7% down from the 2023 figures, according to the forecast of APK-Inform information and analytical agency.
“The forecast was adjusted due to the increase of the planted area under this crop to 1.49 mln ha (+4% to the previous estimate; -4% to 2023),” the analysts explained.
They also increased the export potential of rapeseed in 2024/2025 MY to 3.6 mln tonnes, up 2% from the previous estimate, but 2% down from the previous season-2023/2024.
Experts noted that the condition of winter rapeseed after wintering was mostly assessed as good and satisfactory. However, the lack of moisture observed in the soil due to the rather dry March and the first half of April raised concerns about the yield potential. The situation is expected to be affected by the cyclone that entered the country this week.
“The popularity of rapeseed in Ukraine has increased significantly in recent years, driven by the consistently high demand for the oilseed from European importers. Therefore, rapeseed in Ukraine is now one of the most highly liquid crops and it is a fairly quick way for an agricultural producer to get money,” the agency stated.
In addition, in the last few years, the price of rapeseed on the domestic market has been quite attractive for farmers and among the key oilseeds is second only to soybean prices, but it is quite sensitive to world production and to the price dynamics on the European market of this oilseed.
“In the new season, the prospects for Ukrainian rapeseed are also quite good: the production of this oilseed in the EU is expected to decrease (from -2% according to the European Commission to -10% according to Strategie Grains), which is already creating a rush in the market. However, according to the recent estimates of FAS USDA, in 2024 the production of Australian canola may increase by 14%, which together with Canadian oilseed is the direct competitor of Ukrainian rapeseed on the European market,” – forecasts APK-Inform.
Corteva Agriscience, an international agricultural research company, increased organic sales of sunflower seeds and winter rapeseed by 30% and 80%, respectively, in 2023 compared to 2022, its press service reports.
According to the press release, despite the reduction of corn acreage in Ukraine due to the military actions, Corteva increased its presence in the farms that continued to grow this legume.
The company’s sales growth was driven by an effective direct model of cooperation with farmers, an extensive network of sales agents and representatives, and comprehensive agronomic support for farmers throughout Ukraine. In addition, Corteva has partnered with the Howard G. Buffett Foundation to provide additional rapeseed, corn and sunflower seeds for planting to small Ukrainian farmers in the affected areas, the company said.
Corteva also reported that, despite the overall decline in the crop protection market in Ukraine, the company’s organic sales in 2023 increased by 13% compared to last year. At the same time, the demand for Corteva insecticides doubled compared to 2022.
“Such results reflect the company’s focus on providing farmers with the latest and most advanced products to increase agricultural productivity in Ukraine, as declared in the joint declaration between Corteva Agriculture and the Ministry of Agrarian Policy and Food of Ukraine on deepening and further developing cooperation for food security in Ukraine and the world,” the statement said.
“Almost two years after the start of the full-scale war, we at Corteva have been working side by side with Ukrainian farmers to help them meet the new challenges they face. We have transformed the company’s work in accordance with the current conditions and learned to work in marathon mode. Farmers consider us to be their reliable partners, which is evidenced by the fact that the number of customers remains unchanged despite the overall market contraction. Our team is doing everything possible, demonstrating extraordinary dynamics in 2024,” said Oleksandr Dmytriyev, Corteva Agriscience’s business manager in Ukraine.
As reported, the world’s leading agrochemical company’s operating EBITDA in 2023 increased by 5% year-on-year, while operating profit per share increased by 1% over the same period.
Corteva Agriscience forecasts that in 2024 its net sales will be in the range of $17.4-17.7 billion and operating EBITDA in the range of $3.5-3.7 billion.
Corteva Agriculture is a global agricultural company. It offers comprehensive solutions to maximize yields and profitability. It has more than 150 research facilities and more than 65 active ingredients in its portfolio.
The company’s presence in Ukraine includes the headquarters in Kyiv, a research center in Liubarky (Kyiv region) and a seed production complex in Stasi (Poltava region).
In April 2022, the company decided to leave the Russian market due to the full-scale war against Ukraine unleashed by Russia.
Bulgaria has authorized licensed imports of Ukrainian sunflower, rapeseed, corn and wheat, according to the website of the Ministry of Agriculture and Food of Bulgaria.
According to the report, during an online meeting on Friday, the Ministers of Agriculture of Bulgaria and Ukraine Kirill Vatev and Nikolay Solsky agreed to implement a licensed export regime for sunflower, rapeseed, corn and wheat seeds and agreed on the details of its application.
“The Ministry of Agriculture and Food has kept its promise to limit imports of these agricultural products as much as possible until November 30, according to the Memorandum signed between the government and the Initiative Committee of Protesting Farmers,” the Bulgarian ministry quoted Minister Vatev as saying.
He emphasized that after this period, the two countries will “strictly monitor that there are no market distortions and that the interests of Bulgarian producers, processors and consumers are not undermined.”
Imports and data exchange between the two countries will continue, the Bulgarian ministry emphasized.
As reported, in November 2023, the Minister of Agrarian Policy of Ukraine Solsky expressed the opinion that Bulgaria, which refrained from imposing a unilateral ban after September 15, could become the first frontline country to lift the ban on Ukrainian agricultural products.
In his opinion, the crop that Bulgaria will be ready to import from Ukraine will be sunflower. In Bulgaria, in the fall of 2023, a compromise was reached between farmers and processors to open the market for imports of Ukrainian sunflower from December 1. By this time, local sunflower oil producers, according to the Bulgarian government, will have to buy back the sunflower seeds produced by farmers, and they will need an additional 1.5 million tons of raw materials.
Earlier, Stepan Kapshuk, head of the industry association Ukroliyaprom, told Interfax-Ukraine that Bulgaria has 16 oil extraction plants that have significantly increased production in the 2022 season and intend to develop sunflower oil exports using sunflower seeds imported from Ukraine.
On September 15, the European Commission announced that it would not extend the restrictions on imports of agricultural products from Ukraine to five neighboring EU countries (Poland, Bulgaria, Hungary, Romania, and Slovakia) under certain conditions that will help avoid a new sharp increase in supplies.
The restrictions were introduced on May 2, 2023, and applied to imports of wheat, rapeseed, sunflower, and corn. These five Eastern European EU member states argued that Ukrainian agricultural products, when imported duty-free into the EU, were being deposited in their countries and were harming their local agricultural sectors.
After the restrictions were lifted, Poland, Hungary, and Slovakia imposed unilateral bans. Poland expanded its list of banned products to include rapeseed cake and meal, as well as corn bran, wheat flour, and derivatives. Hungary extended the list to 24 commodity items.
Ukraine filed a lawsuit with the WTO, accusing Poland, Hungary, and Slovakia of discriminatory treatment of its agricultural products.
Ukraine is currently negotiating a mechanism for licensing exports of Ukrainian agricultural products with mandatory verification in each of the five countries.
