Russia. Growth in the oilseed segment is expected only in sunflower oil

Russian agriculture is facing crisis trends, although the oilseeds segment is showing some stability. According to Dmitry Rylko, Director General of the Institute of Agricultural Market Conditions (IKAR), the past season was difficult for oilseed producers due to problems with margins, especially in the sunflower segment. After four years of growth, in the MY 2024/25, there was a drop in vegetable oil production by 7% to 9.5 million tons, and exports decreased by 8% to 6.75 million tons, while the production and export volumes of sunflower oil fell by 11%.

In the new season, IKAR analysts expect a record harvest of oilseeds: sunflower – 17.8–18 million tons, rapeseed – 5–5.1 million tons, soybeans – 7.9–8 million tons. Exports of products are also forecast to be close to a record. At the same time, sunflower carryover stocks remain low, and this season’s harvest is at risk due to drought in the south and uncertain weather conditions in other regions.

Experts note that sunflower oil may be the only segment with growth in production and exports. For processors, the year remained difficult due to unstable margins, but increased demand for sunflower oil and the expected harvest make this product a potential market leader.

Tags: sunflower oil, Russia