Russian exporters shift to sunflower oil and meal supplies to Kazakhstan after sunseed import ban

Russian exporters are shifting from sunflower seed shipments to exports of sunflower oil and meal to Kazakhstan following restrictions on imports of Russian raw materials. Russian traders confirmed the shift to Yevgeny Karabanov, a representative of the Grain Union of Kazakhstan. According to him, the development could intensify competition in the Kazakh market and lead to further declines in oilseed product prices.

On October 23, Kazakhstan suspended the issuance of phytosanitary certificates for Russian sunflower seed imports, effectively restricting shipments. The decision followed a sharp decline in domestic prices amid an influx of cheaper Russian raw materials. According to Karabanov, sunflower seed purchase prices in Kazakhstan fell from 200,000–210,000 to 160,000–165,000 tenge/t in just one month.

Meanwhile, Russia’s oilseed sector is facing a surplus of raw materials and logistics constraints. Market participants estimate that the country’s oilseed harvest could reach 35–40 mln tons, while annual processing capacity stands at approximately 34 mln tons. Export difficulties at Black Sea and Sea of Azov ports, along with a shortage of specialized terminals in the Baltic region, are adding further pressure.

Due to limited seaborne export capacity, Russia’s overall sunflower oil export forecast has been cut from 3.5 mln to 2.8–3 mln tons, while the sunflower meal export forecast has been reduced from 2.5 mln to 2–2.2 mln tons. Against this backdrop, Russian producers plan to offer more sunflower oil and meal in Kazakhstan, other Central Asian countries, Afghanistan and China, potentially intensifying price competition with Kazakh exporters.

Karabanov believes that the ban on Russian sunflower seed imports will not fully stabilize Kazakhstan’s domestic market. Lower sunflower oil and meal prices could force local processors to reduce their purchase prices for sunflower seeds, negatively affecting farmers’ incomes. In addition, Kazakh producers risk losing some of their competitive advantages in traditional export markets across Central Asia and China.

Tags: sunflower oil, Kazakhstan, sunseed, imports, sunflower meal, restrictions, Russia