Logistics and weather increase their influence on the Black Sea–Danube–Balkan oilseed market

Article author:

Olena Hesova

Grains, Oilseeds & Pulses Market Analyst

Disruptions to traditional Black Sea trade flows are increasing the importance of stable alternative sunflower oil supplies for the European market. The EU remains highly dependent on Ukrainian supplies, while other suppliers cannot fully replace these volumes. Under these conditions, Romania and Bulgaria are gaining importance as sunflower seed producers and sunflower oil suppliers. Romania has already significantly increased oil exports, while supporting high crushing rates partly through imported raw materials.

Agriculture and food processing are increasingly supporting the country’s exports. Expansion of domestic processing points to a long-term shift toward exports of higher value-added products rather than raw materials. This will strengthen domestic demand for grains and oilseeds while increasing competition between processors and exporters for raw materials.

The new season is characterized by the growing impact of logistics on trade-flow redistribution and the competitive positions of regional suppliers. At the same time, deteriorating weather conditions are limiting the production potential of late crops. As a result, markets able to combine sufficient raw material supplies, domestic processing capacity and stable sales channels are likely to gain a competitive advantage.

Full version of the article is available to subscribers of the Weekly  ‘BLACK SEA & DANUBE OILSEED REPORT’ by UkrAgroConsult.

Request a free a sample report and apply for subscription here.

Be confident with your business and trade strategy based on professional analysis and forecasts of the Black Sea agri market.

Tags: logistics, weather conditions, sunflower oil, Bulgaria, Romania, EU, oilseeds, Black Sea region