In 2022/2023 marketing year, Ukraine increased the production and export of sunflower oil by 25.4% compared to 2021/2022 MY, the press service of the association Ukroliyaprom reports.
“One of the main peculiarities of 2022/23 MY was the significant increase of sunflower seed processing at the domestic facilities starting from 2023, after the ban of its import by some EU countries. This allowed to significantly increase the processing of sunflower seeds within the country and, accordingly, the production of oil and its export by 25.4%, sunflower meal – by 27.3% compared to 2021/22 MY,” the company said in the report.
According to the report, the export of sunflower seeds decreased by 58% in the first eight months of 2023 compared to the same period of 2022. This made it possible to significantly increase its processing at domestic facilities and, accordingly, the production and export of high value-added products.
In 2022/23 MY, the production and export of soybean oil increased by 18%, and soybean meal – by 19.4%.
These figures could have been higher if soybean processing in the country had increased, especially given that exports of soybean products are mainly carried out by road and rail, the association noted.
In addition, in 2023, Ukraine increased the processing of rapeseed, as evidenced by the increase in exports of rapeseed oil in July-August this year by more than 20 times compared to the corresponding period in 2022.
“Ukroliyaprom forecasts that in 2023/2024 MY Ukraine’s production of main types of oilseeds will increase by 18.8%. This will be due to the expansion of production areas by 12.1% and an average yield increase of 5.7%, which was facilitated by favorable weather conditions. The largest increase in production is expected for sunflower seeds – by 15%.
As reported, Ukroliyaprom expects that in the season 2023/2024, Ukraine can produce up to 5 million tons of sunflower oil, while exports can reach 4.7 million tons.
The agrarian ministries of Ukraine and Bulgaria are starting to develop a declaration on the mechanisms of influence in case of possible market shocks, including sharp price changes, in bilateral trade of sunflower oil, the press service of the Bulgarian Ministry of Agriculture said.
“The declaration is expected to signal the willingness of both sides to act together to prevent future market anomalies,” the Bulgarian agriculture ministry said in a statement following talks Friday in Sofia between Bulgarian Agriculture Minister Yavor Gechev and Ukrainian Agropolitics Minister Nikolai Solsky.
The sides discussed an emergency protective measure of the European Commission to temporarily ban imports from Ukraine of four crops – wheat, corn, canola and sunflower – in Bulgaria, Poland, Romania, Slovakia and Hungary.
Gechev informed the participants of the negotiations about the Bulgarian government’s decision to lift the national ban on imports from Ukraine of a number of agricultural products and said the Bulgarian side will closely monitor the market both in terms of sunflower oil and other agricultural products.
“Bulgaria and Ukraine can work together to find long-term solutions for accelerated transit of agricultural goods to third countries and propose them to the European Commission,” the Bulgarian minister said.
He said that Bulgaria’s efforts are currently focused on the development of logistical systems through which solidarity corridors will function and fulfill the function for which they were created.
“Together we can face the challenges posed by the current situation and, in this way, solve them more quickly and efficiently,” Gechev stressed.
In turn, Nikolai Solski expressed the hope that the dialogue between the agrarian departments of the countries will continue. He assured his Bulgarian colleague that Ukraine was ready to jointly solve any arising issues in the future.
For its part, the Ukrainian Ministry of Agrarian Policy said after the talks that Bulgaria was ready to import all agricultural products from Ukraine, except for the four crops mentioned above.
Ukraine in January-March this year, Ukraine increased exports of sunflower oil by 14.5% – to 1 million 322.611 thousand tons.
According to customs statistics, in monetary terms, exports of these products in the first quarter decreased by 13.6% – to $1 billion 355.889 million ($1 billion 568.449 million in the first quarter of 2022).
In 2022, Ukraine reduced exports of sunflower oil by 16.4%, to $4 billion 290.336 million, in monetary terms – by 14.5%, to $5 billion 464.151 million.
Ukraine in January-March this year, Ukraine increased exports of sunflower oil by 14.5% – to 1 million 322.611 thousand tons. According to customs statistics, in monetary terms, exports of these products in the first quarter decreased by 13.6% – to $1 billion 355.889 million ($1 billion 568.449 million in 1Q2022).
During this period, the export of soybean oil increased by 36.6% – to 78,091 thousand tons, in monetary terms increased by 1.6% – to $77.689 million.
In 2022, Ukraine reduced exports of sunflower oil by 16.4% to $4 billion 290.336 million, in monetary terms – by 14.5% to $5 billion 464.151 million.
Soybean oil exports in 2022 were 237,025 thousand tons, down 1.7% from 20211. In monetary terms, exports rose by 3.2% to $304.685 million.
KSG Agro rented an oil extraction plant (OEZ) in Dnipropetrovsk region to produce virgin sunflower oil from its own raw material.
According to the agricultural holding’s press release issued on Friday, the crude sunflower oil it produces will be exported to European Union countries by road.
It is specified that the capacity of rented crushing plant allows processing 2.5 thousand tons of sunflower seeds into 1 thousand tons of sunflower oil per month. Staff of the factory consists of 30 persons. The production is equipped with modern equipment manufactured in Ukraine in 2008.
Agroholding reminded that after the start of a full-scale Russian military invasion into Ukraine, it began exporting rapeseed and sunflower oil to Poland, Slovakia and Italy. In addition, it began pilot shipments of sunflower oil to Poland and Italy using “flexitanks” – polymeric containers designed to transport liquid cargo and installed on trucks.
The vertically integrated holding KSG Agro is engaged in pig farming as well as the production, storage, processing and sale of grain and oilseeds. Its land bank is about 21,000 hectares.
According to the agricultural holding, it is one of the top five pork producers in Ukraine.
In 2021, the holding increased its net profit in 16 times compared with 2020 – up to $20.27 million, revenue – by 44%, to $30.75 million, while increasing EBITDA by half – to $12.28 million.
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.
Agroholding KSG Agro has begun exporting sunflower oil to Poland and Italy, and the first batch of 2,000 tons of rapeseed has been sent to Slovakia, according to a press release from the agrarian group on Thursday.
“Currently, there are very good conditions for agricultural producers to export to the EU – in fact, there are no taxes (in particular, VAT) and import duties. So, if you solve problems with transportation, establish efficient logistics, you can have a good source of replenishment of foreign exchange income”, – quotes the agricultural holding of its owner Sergey Kasyanov.
According to him, the export of agricultural products to the EU makes it difficult to increase the cost of logistics and increase its time. So, if earlier one delivery to the EU was carried out on average in 5-7 days, then in the conditions of the Russian military invasion and queues at border crossings, delivery can last 20-30 days.
It is specified that the supply of sunflower oil to Poland and Italy will be carried out with the help of flexitanks – polymer containers designed for the transportation of liquid cargo on conventional trucks.
In addition to KSG Agro LLP, we are currently negotiating with partners regarding the possibility of bottling and refining sunflower oil in the EU countries in order to quickly increase its exports and sell products ready for consumption.
“We managed to build effective supply chains for export supplies of both grain and high value-added products (vegetable oil) to the markets of the EU countries, despite the blockade of seaports. In 2022-2023, we plan to focus on developing the export of our products in order to increase foreign exchange earnings. There are all the prerequisites for this, for example, high demand in the EU for grain and the same rapeseed,” Kasyanov summed up in the message.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as the production, storage, processing and sale of grains and oilseeds. Its land bank is about 21 thousand hectares.
According to the agricultural holding, he is in the top 5 pork producers in Ukraine.
In 2021, the holding increased its net profit by 16 times compared to 2020, to $20.27 million, revenue by 44%, to $30.75 million, while doubling EBITDA to $12.28 million.
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.
