Russian oilseed crushing plants face shutdown risk due to meal export problems

Oilseed crushing plants in southern Russia are facing the risk of shutdowns due to difficulties in marketing sunflower meal. Authorities in the Rostov region warn that if maritime navigation remains restricted, plants may struggle to continue processing, as transporting meal by rail is economically unattractive.

The situation is linked to restrictions on exports through Black Sea and Azov Sea ports. Rerouting cargoes to northern, central and Far Eastern regions significantly increases transport distances and costs, making sunflower meal exports less competitive.

Exports of processed products have already fallen sharply. According to OleoScope, Russia may export only 32 thsd tons of sunflower meal and around 110 thsd tons of sunflower oil in September, well below average levels.

The problem is being exacerbated by a large sunflower crop. Russia’s 2026 production, excluding occupied territories, is forecast at 20.7 mln tons, while crushing volumes may not exceed 16 mln tons. Under these conditions, carryover sunflower seed stocks could exceed 5 mln tons.

Export and processing constraints are already putting pressure on domestic prices. In Russia’s Southern Federal District, sunflower seed prices more than halved between late July and mid-September, while sunflower meal prices also declined sharply. If maritime logistics are not restored, crushing plant utilization could fall further.

Tags: sunseed, margin, restrictions, Russia, sunflower oil, export