Should Ukraine exports sunflower or not?

Published 2023년 3월 7일

Tridge summary

Ukraine, a top sunflower exporting country, might face financial losses due to high exports and a low 2022 sunseed harvest. The country's new Law No. 8274 changes the procedure for calculating sunflower export prices and duty, potentially regulating prices of vegetable oils and meals. The law sets a minimum price for sunflower exports, which will be determined by the Ministry of Economy and based on stock exchange quotations for vegetable oils and other oilseeds. The law's complex price setting procedure and the lack of an exchange that trades sunseed or sunflower oil introduces numerous uncertainties.

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

Original content

Ukraine is one of biggest sunflower (SFOil) exporter, occupying a leading position in the world market. However, logistical problems of the commodity shipments by sea promoted a sharp increase in sunflower exports. In 2021/22 (previous season), the record high sunseed exports was not considered as anything unacceptable given the record 2021 sunflower harvest and high sunflower carryover due to some large crushers shutdown. But in the current 2022/23 season, according to UkrAgroConsult estimates, high sunflower export at level of 2.2 M t together with low 2022 sunseed harvest, may provoke heavy financial loses for SFOil producers. Affects of high sunseed exports February – August, 2023: Ukraine maybe in on the way to losing its first position in the global export of sunflower oil. Sunflower exports starting from February 24, 2023 regulated by new Law No. 8274. The Law changes the procedure for calculating the sunflower export prices and duty. The Law might regulate also prices of ...

Source: UkrAgroConsult