A decade-low: why sunflower oil production has fallen in Ukraine
The ‘Ukroliyaprom’ association has reported on these trends in the agricultural market.
According to experts’ forecasts, Ukrainian factories will produce around 4.6 million tonnes of oil this year, which is significantly less than last year’s 5.1 million tonnes. Consequently, export volumes will also fall — a decline of 6.4% to 4.4 million tonnes is expected. The main reason for this ‘slump’ is a sharp drop in sunflower yields, which fell by 16.8% compared to last season.
The Ukroliyaprom association emphasises that the current sunflower yield is the lowest in the last ten years. However, there is also good news for the Ukrainian budget. Despite the physical reduction in exports, foreign exchange earnings are not falling but, on the contrary, are rising. This is due to the sharp surge in sunflower oil prices on global markets, which is offsetting the domestic raw material shortage.
Thus, the Ukrainian agricultural sector is adapting to the new realities: lower production volumes are offset by higher product prices. Experts continue to monitor price trends, as Ukrainian oil remains one of the key export commodities ensuring the stability of foreign exchange earnings even under difficult weather and economic conditions