Before the Luteniks: Oil rises in price due to a weak harvest in Bulgaria

Published 2024년 9월 17일

Tridge summary

A weak sunflower harvest and difficulty in imports may lead to a raw material shortage and a spike in oil prices. The Ministry of Agriculture has reported a 27.8% increase in sunflower production but a 17.7% lower yield due to dry summer conditions. The average yield is at a low 149 kg/ha, compared to 181 kg/ha from the previous year. The purchase prices have seen a 6.9% annual increase. Russia has introduced an export tax on sunflowers, and Ukraine has a licensing regime that makes exports difficult. The chairman of the association has noted that Bulgaria relies on imports from Hungary and Romania, but also exports sunflower to 11 countries, creating a paradox.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

This year's weak sunflower harvest, exports, as well as difficult imports may again lead to a shortage of raw material. The result will be a spike in the price of oil. According to the latest operational data of the Ministry of Agriculture, as of September 5, 2024, a higher production of sunflower was reported (by 27.8%) compared to the same period of 2023. On the other hand, the yield was lower by 17.7 % at almost 55% harvested areas. At the moment, the average yield is worryingly low - only 149 kg/ha, compared to 181 kg/ha from the economic year 2023. The poor results are a mix of factors, with the leading cause being the dry summer, which has been a scourge for farmers for the second year running. Due to the deficit, the purchase prices show, albeit a weak growth compared to last year. According to the Ministry of Health, there is an annual increase of 6.9%. As of September 4, 2024, the average purchase price of sunflower was BGN 822/ton without VAT compared to BGN 769/ton ...

Source: Dnes