The growing cost of grain production prompts farmers to give preference to high-margin crops. Sunflower is one of the leaders in this group. However, in order to maximize profit from this crop, you need to take into account many components. The margins can increase in case of additional premiums for the content of high oleic acid in sunflower oil.
Demand is expected to increase
Experts advise paying attention to the high oleic segment of this crop this year. This is due to a number of serious advantages of this type of sunflower and the growing demand for it from the food industry, the driver of which is HoReCa in China and EU countries. Demand is expected to increase in the near future due to the introduction of mandatory labeling of products indicating the source of oil. For sunflower producers in Ukraine, this is a unique opportunity to get additional profit from each hectare without additional costs.
The market of high oleic sunflowers has great potential for Ukrainian agrarians. This is evidenced at least by the dynamics of its cultivation in the country. Thus, since 2009, the area under HE sunflower has increased 15 times, and oil production – almost 20 times. The maximum sowing under this segment reached in 2020. – About 800 thousand hectares.
Currently, Ukraine is among the top three leaders in high oleic sunflower production in the world, second only to France. However, just because of premium payments to farms by processing companies, the sunflower market is unstable. With a certain cyclicality, which usually lasts about two years, it is possible to observe the rise and fall of the premium.
The planted area of sunflower in Ukraine in 2023 amounted to 5.3 million hectares, of which high oleic sunflower occupies 420 thousand hectares. The high oleic segment depends on the processing and production industry, and its size depends on global demand and premium. Today the market offers a minimum premium, but market experts see the prospect of its increase by the end of this year and reaching its maximum values by the end of next year for objective market reasons.
Source: Apkinform