Sunflower oil prices in Ukraine may decline within three months
Retail sunflower oil prices in Ukraine may begin to decline over the next three months, Agriculture Minister Taras Vysotskyi said. The main factor behind the potential correction is lower prices for sunflower seed, the key raw material.
According to him, if restrictions on port operations and exports remain unchanged, lower sunflower seed purchase prices will gradually feed through to finished product prices. However, there is a time lag between changes in raw material costs and retail sunflower oil prices, which may reach up to three months.
The Ministry of Agrarian Policy considers domestic sunflower oil supplies sufficient. Necessary stocks have been accumulated both in retail chains and at producers’ warehouses, so there is currently no risk of shortages on the domestic market.
Despite attacks on oilseed processing facilities, existing crushing capacity remains sufficient to cover domestic consumption. According to the ministry, the industry has access to more than 20 mln tons of raw materials for processing, compared with an estimated requirement of about 16 mln tons.
Possible new attacks on crushing plants and continued problems with export logistics remain key risks for the sector. However, even if available processing capacity falls to around 16 mln tons of raw materials, Ukraine will still be able to fully meet domestic demand for sunflower oil, according to the Ministry of Agrarian Policy.
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