War dries up Europe’s access to vegetable oil

Published 2022년 12월 12일

Tridge summary

The European Union is facing a challenge to find alternative sources for vegetable oil as Ukraine, its main supplier, experiences a decline in exports due to the ongoing conflict. Despite being the world's largest exporters of sunflower oil, both Ukraine and Russia have seen a decrease in exports. Ukraine's exports have fallen by 15% due to war-related issues, while Russia's exports have dropped by 27% due to a floating export duty. As a result, the European Union is looking for other countries like France, Germany, and Romania to increase their winter canola plantings to compensate. Russia is also expected to increase its canola and soybean plantings due to strong demand from China. However, Russia's export challenges remain due to international sanctions.

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

Original content

The European Union needs to find a way to replace much of the vegetable oil it used to import from Ukraine, says an industry official. Loic Boucher, Corteva Agriscience’s oilseed marketing lead for Europe, the Middle East and Africa, said Ukraine is a major global exporter of the commodity. And the European Union is its biggest customer, accounting for 32 percent of sales in 2021. The next biggest customers are Southeast Asia at 27.4 percent and Asia at 20.1 percent. Russia and Ukraine are responsible for 80 percent of the world’s sunflower oil exports. The two countries harvested a record amount of the oilseed in 2021-22, with production up 18 percent year-on-year, according to UkrAgroConsult. However, Ukraine’s sunflower oil exports fell by 15 percent because of war-related problems, while Russian exports dropped 27 percent, largely due to a floating export duty, according to the consultancy firm. Boucher said sunflower is the biggest oilseed crop grown in Ukraine. A large ...

Source: UkrAgroConsult