Buying oilseeds (sunflowerseed & oil, rapeseed) from Ukraine

An Expert's View about Major Exports in Ukraine

Posted on: 19 May 2012

All about buying, exporting oilseeds (sunflower seed & oil, rapeseed) from Ukraine

The sunflower oil prices in the Eastern Europe and the CIS countries are much higher than in Ukraine. Therefore, Ukraine is the largest sunflower oil exporter in the world - 3 million tons per year, covering 60% of world consumption. Sunflower oil primarily exported to the Eastern Europe and the CIS countries.

sun oil exports (mln tons)/ marketing year 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
quantity 1,5 1,9 1,3 2,1 2,7 2,6 3

The planted area of sunflower seed in Ukraine has increased dramatically from 2.500 hectares in 2001 (yield – 1 MT per hectare) to almost 5.500 hectares in 2012 (yield – almost 2 MT per hectare). In 2012 sunflower sown over 2.492 million hectares in Ukraine. Compared to the same period last year the pace of sunflower planting have grown by almost 20%. In 2012 soybeans planted on 650 thousand hectares. The rate of soybean planting in Ukraine has also increased comparing to last year by 35%. We believe that in 2012 sunflower crops in Ukraine will make 5.7 million hectares and soybean - 1.35 million hectares.

Currently oilseed profitability in Ukraine is 100%. Ukraine does not apply export duty to oilseed commodities. However, according to Tax Code export VAT (20%) shall not be reimbursed in case of export of oilseed commodities.

Rapeseed is highly demanded by Poland, Germany and Austria for biodiesel production. In 2008-09 Ukraine exported 20% of world rapeseed volumes with 270% profitability. Since 2010 the EU has started buying Canadian GMO rapeseed (canola). So in 2011, profitability has fallen to 13%. Now rapeseed planted area is only 3.5% and 95% of rapeseed crops is exported to the EU, Turkey, Pakistan, Bangladesh, Japan, Germany, Mexico.

Ukrainian port handling capacities almost 2 times exceed current export rates. Ukrainian storage capacities also slightly exceed current exports. Therefore, Ukraine has strong position and may further develop its oilseed export.

Bearing in mind that up to 2070 the world population will double as well as shortage of arable lands will only increase, Ukrainian oilseed (sunflower seed & oil, rapeseed) market has great potential for expansion.

Copyright. Marketplace UkrRos LLC

Posted: 19 May 2012

See more from Major Exports in Ukraine

Expert Views    
Apparel, textiles outsourcing to Ukraine   By Marketplace UkrRos LLC
Customs control formalities in Ukraine   By Marketplace UkrRos LLC
Latest News    
Sugar exports from Ukraine in 2012   By Marketplace UkrRos LLC
Buying ammonium nitrate from Ukraine   By Marketplace UkrRos LLC
Ukraine - sunflower prices decline rapidly   By Marketplace UkrRos LLC