Sunflower oil export delays threaten corn storage capacity in Ukraine

Delays in vegetable oil exports could slow sunflower seed crushing and delay the release of storage capacity needed for the new corn harvest. The Ukroliyaprom association warns that the issue is becoming particularly urgent amid the ongoing corn harvest, which requires substantial drying and storage capacity.

Under normal operating conditions, oil extraction plants regularly purchase sunflower seed from farmers, freeing up grain elevators and dryers for corn. However, prolonged storage of sunflower seed in plastic grain bags or temporary storage facilities carries higher risks due to its high oil content and potential self-heating, which can deteriorate seed quality.

The key problem is the limited capacity of storage tanks for finished oil at processing plants. According to the association, these tanks can accommodate only 5–7 days of production. If finished products are not shipped on time, the tanks fill up, forcing plants to reduce or suspend crushing operations and stop accepting new sunflower seed deliveries.

As a result, farmers may face two challenges simultaneously: the need to store sunflower seed for longer periods, increasing the risk of quality deterioration, and a shortage of available drying and storage capacity for corn. This could further complicate logistics during the peak harvest period for late-season crops.

Ukroliyaprom emphasizes that tank railcars used for vegetable oil and grain hopper wagons do not compete directly, nor do specialized port terminals handling oil and grain. However, both cargo flows depend on shared railway and port infrastructure, including locomotive availability, transport capacity, and vessel traffic management.

Tags: corn, export, edible oils, UkrOliyaProm Association