Decline in Sunflower Oil Production in Ukraine Due to Raw Material Shortage

28-Jan-2025 09:31 AM

Decline in Sunflower Oil Production in Ukraine Due to Raw Material Shortage
★ Due to reduced availability of raw materials for crushing, Ukraine’s leading sunflower oil producer- Kernel halted crushing operations at one of its units in January 2025.  
★ With limited sunflower seed supply in the market, the company processed 93,000 tons of soybeans and 14,000 tons of mustard seeds across three units.  
★ Ukraine’s sunflower production, agricultural activities, and logistics have been severely impacted by the ongoing war, disrupting supplies and operations.  
★ Despite these challenges, Kernel processed 973,000 tons of oilseeds in this quarter of the fiscal year 2025, marking a 20% increase compared to the same period last year.  
★ Ukraine’s edible oil exports reached 408,000 tons, showing a 52% quarter-over-quarter growth and an 11% year-over-year increase.  
★ If the shortage of oilseeds for crushing continues, more crushing units could shut down, potentially affecting global supply chains.  
★ As one of the leading exporters of sunflower oil, a further decline in Ukraine’s crushing capacity could create a scenario of tighter supplies and upward pressure on global prices.