For the first time in many years, Ukraine sold several million tons of sunflower to foreign markets. Mass export of sunflower seeds from Ukraine is one of the main and not the most pleasant results of 2022 for oil producers. Exports reached 2.754 million tons. Sales increased 35 times compared to 2021, when exports amounted to 79 thousand tons. The main buyers were EU countries — more than 70%, Turkey — more than 20%. Only Bulgaria bought more than 800,000 tons.
Oil producers are worried about the possible loss of oil and meal markets in the EU.
The association “Ukroliyaprom” notes that the unprecedentedly high export of sunflower seeds can have negative consequences for the country’s economy. In particular, such an increase in the export of the main oil crop reduced the interest of EU countries in Ukrainian sunflower meal. Sufficient quantities of sunflower to meet the needs of the EU may cause the loss of oil sales markets.
Thus, oil producers point out that Ukraine could apply special protective measures for manufacturers in the form of an additional fee when exporting sunflower seeds to EU countries. In accordance with the Annex 1-D to the Association Agreement, if export volumes exceed 100,000 tons, Ukraine may apply special measures for the export of certain types of goods that are currently subject to export duties.
Earlier, oil producers appealed to the state leadership to prevent an unjustified increase in the export of sunflower seeds for the 2022 harvest. It is important for the country to ensure the maximum processing of sunflower seeds at domestic facilities and increase the production and export of sunflower oil and meal. The authorities considered it inexpedient to introduce any restrictions on trade in oil crops.
Ukrainian oil manufacturers are able to process the entire harvest of oilseeds.
Producers say that the further increase in the export of sunflower seeds may lead to the shutdown of oil extraction enterprises and a reduction in the production of sunflower oil, which is classified as a socially significant product.
Even after the loss of part of the production capacity due to the war, the factories are able to process the entire harvest of oilseeds.
Oilseed processing capacities at the end of 2021 were estimated at 24 million tons and were loaded at 70%. After the start of the full-scale invasion, the industry lost, according to different estimates, 20–30% of capacity.
The preliminary harvest of oilseeds in Ukraine in 2022 is: sunflower — 10.5 million tons, soybean — 3.7 million tons, rapeseed — 3.2 million tons. Ukraine usually exports most of its rapeseed and soybean crops.