Ukraine’s vegetable oil exports halve due to maritime logistics problems

Ukraine is currently able to export around 300 thsd tons of vegetable oils per month due to maritime logistics problems, half the volume shipped before sea exports were disrupted. This was reported by Stepan Kapshuk, Director General of the Ukroliyaprom association.

According to him, Ukraine is exporting 5–7 thsd tons of sunflower oil per day in August, while rapeseed and soybean oils account for another 2–3 thsd tons. Total daily shipments amount to around 8 thsd tons, or up to 300 thsd tons per month.

Limited capacity to export finished products has become one of the main factors behind the sharp decline in sunflower seed purchase prices in Ukraine. The situation is further complicated by a shortage of transport and insufficient storage capacity.

Ukroliyaprom expects the logistics situation to stabilize within the next two to three weeks. A recovery in vegetable oil export capacity could ease pressure on Ukraine’s domestic sunflower seed market.

Meanwhile, Ukraine’s vegetable oil production could reach 7 mln tons this year, while domestic consumption is only around 300 thsd tons. Therefore, despite export difficulties, the association does not expect any shortage of vegetable oil on the domestic market.

Tags: export, Vegetable Oil, logistics, Ukraine