News

Ukrainian sunflower processing may stop due to Russian attacks on the energy sector

Sunflower Seed
Nuts & Seeds
Published Apr 17, 2024

Tridge summary

Ukrainian sunflower oil factories are at risk of halting operations due to the severe damage inflicted on Ukraine's energy system by ongoing Russian shelling. Despite exporting 46,000 tons of sunflower oil mainly to Romania and Bulgaria in April, Ukraine anticipates a potential sunflower shortage in May-June. However, global declines in vegetable oil prices might prevent a price increase for sunflower oil. The reliance on electricity and the impracticality of using expensive diesel generators for production could lead some factories to cease operations if the attacks continue, as the state prioritizes electricity for the population. The market is expected to see reduced prices for sunflower and vegetable oils, with current processing margins offering minimal profit and sunflower prices expected to fall further.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Ukrainian factories that produce sunflower oil may stop their work in the event of continued Russian shelling of energy facilities. Spring attacks on infrastructure have already led to a critical state of Ukraine's energy system. This assumption was made by analysts on April 16 during an analytical briefing of the PUSK cooperative, created within the framework of the VAR. "In April, Ukraine exported 46,000 tons of sunflower, the main buyers being Romania and Bulgaria. There are very few sunflowers left in Ukraine, and this oilseed may be in short supply in May-June. However, this may not cause an increase in prices, since the prices of vegetable oils: both soybean and palm, are falling on world markets. Another factor influencing the market is Russian attacks on energy. Most processing plants operate on electricity. Almost all processors have diesel generators, but switching to them is impractical given the rising cost of production. If Russian shelling of energy facilities ...
Source: Agravery
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