Ukraine was the world’s largest exporter of sunflower oil since 2012, but after the outbreak of the Russia-Ukraine war, Russia is about to overtake Ukraine in reference to the export of Sunflower Oil across the world.
Sunflower oil is manufactured by pressing sunflower seeds. It is considered good for heart health. It also contains high amounts of monounsaturated fats, polyunsaturated fats, antioxidants as well as Vitamin E. due to its beneficial constituents it remains in high demand across the world.
Ukraine accounts for more than half of the export volume of sunflower oil and the majority of the sunflower oil is exported to the core consumers of vegetable oil such as European countries and India.
Production Of Sunflower Oil In Ukraine
Due to local market constraints, Ukraine has lately surged to the peak of the less profitable sunflower seed trade, which has alarmed the country’s agricultural ministry. The 2022 Ukrainian grain and oilseed harvests were significantly disrupted by the attack on Ukraine by Russia. In 2023, the war led to a drop in sunflower oil yield by more than 40.1% and 25.2% respectively.
As per the estimate of the US Department of Agriculture (USDA), around 14.2% of the population of Ukraine is involved in the agricultural sector.
Despite the fact that Ukraine was consistently supplying sunflower oil to core importers in the previous month through the Black Sea export agreement, shipments still declined due to the impact of the Russian invasion. The elevated sunflower oilseed exports are undesirable because Russia not only wanted to limit UKraine’s potential revenue export but also risk forcing the collapse of oilseeds processing firms. This may result in permanent employment loss and market share loss of Ukraine.
USDA Statistics On Export Of Sunflower Oil From Russia As per the USDA’s prediction, Russia will overtake Ukraine in the sunflower oil export business in the 2022-23 marketing year. Russia accounts for about 35.1% of trade vs 33.9% for Ukraine. In the past few years, these stakes were 28.2% and 50.1%, respectively.
However, Ukraine has suffered a substantial decline in sunflower oil output as a result of the Russia-Ukraine war, which has had a significant influence on the functioning of Ukrainian Sunflower Oil refineries. Likewise, Russia has experienced substantial growth in Sunflower Oil output and associated goods in recent years, as well as improvements in other oilseed and grain harvests.
Furthermore, to create space for the increase of oilseed and maize, Russian farmers have reduced the land allotted to other crops such as
oats, barley, rye, and millet. Thus, according to USDA estimates, the total cultivation area of key sunflower oil seed crops and Russian grains has grown roughly by 1.6% each year over the previous five years.
According to the ChemAnalyst statistics, Russia’s supply of Sunflower Oil is anticipated to expand as Russia gains an export dominance.
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