Ukraine Seeks Balance Between Farmers’ Profits and Oilseed Processing Plants’ Operations in Rapeseed Export Issue

UkrAgroConsult

The issue of potentially restricting rapeseed exports from Ukraine is currently under analysis and economic feasibility assessment, according to Minister of Agrarian Policy Vitaliy Koval in an interview with Latifundist.com. He emphasized that the government aims to make a decision that benefits the national economy as a whole.

“We must understand that Ukraine’s goal today is to maximize economic development. The agricultural sector is a key budget contributor: last year alone, farmers and processors paid 243 billion UAH in taxes,” Koval stated.

Currently, oilseed processing plants are operating at only 65% capacity, and the government aims to increase this to over 80% to optimize production facilities and boost value-added within the country.

“We are seeking a balance between farmers’ profitability and plant utilization. The decision will be well-considered and in Ukraine’s best interest,” the minister stressed, noting that no decision will be rushed or one-sided.

Koval added that the discussion extends beyond rapeseed to soybeans, both key export crops. The government is analyzing the optimal ratio of domestic processing and exports to maximize long-term economic benefits.

Notably, Ukraine is actively debating the introduction of an export duty on rapeseed, raising concerns in the EU about potential impacts on bilateral trade. Additionally, Stepan Kapshuk, General Director of the Ukroliyaprom Association, proposed banning the export of 50% of the rapeseed harvest to increase the utilization of domestic processing capacities.

Tags: Ukraine, export, soybean, rapeseed, restrictions