Ukraine. Sunseed prices force factories to switch to soybeans

In MY 2024/25, the unjustified increase in prices for sunflower seeds on the domestic market became a new challenge for the oil and fat complex of Ukraine. This is stated in the message of the association “Ukroliyaprom”.

Stepan Kapshuk, the CEO of Ukroliyaprom, noted that the prices increased from 13-14 thsd UAH/t to 25-26 thsd UAH/t, or by $250 compared to the beginning of MY 2023/24. At the same time, the prices of sunflower oil on the global market increased by $130.

He noted that, given the forecasts of a reduction in the sunflower harvest in Ukraine and the high competition of processing companies, farmers are holding back sunseed sales, expecting even higher prices.

“Such a pricing policy for sunseed will lead to the fact that oilseed crushing mills will reduce sunflower processing and increase soybean processing, which some are already doing. This is also confirmed by the growth of soybean oil and meal exports in September-November of MY 2024/25 by 42.5% and 13.4%, respectively,” explained Mr. Kapshuk.

He noted that soybean products, in particular soybean oil, are exported mainly to European countries by rail (58%) and road (37%), and only 7% by sea.

“There are traditional markets for sunflower oil, but those who use it as a raw material for their production can indeed replace it with alternative types of oil.

Those who are holding off on selling sunflower should also take into account the following trends in the global market, where no one considers sunseed as a separate crop that forms prices,” the expert summarized.

Tags: Ukraine, prices, soybean, sunseed