Europe has little to worry about in the coming weeks and months, even if Russia cut off its gas supplies. But if the conflict lasts longer, possibly for years, Europe faces a severe crisis with global repercussions. But what about agricultural commodities such as sunflower seeds?
As for many other agricultural commodities coming from Russia and Ukraine, the situation will be difficult for sunflower seeds. Indeed, there is currently no significant demand for sunflower seeds on the European market, and the warehouses are full, as many companies have stockpiled due to the pandemic. But what, many companies are not aware that about 50% of the world’s sunflower seed harvest comes from Russia and Ukraine. If the Russian army invades Ukraine and the West imposes the announced sanctions, no more sunflower seeds will be supplied from Russia and Ukraine.
Prices for sunflower seeds are already rising, undoubtedly also due to the general price increase for oilseeds. Furthermore, there will be no calming down in the area of logistics. Experts were still assuming at the end of this year that the logistics sector would regulate itself again in the summer of 2022 and that transport would become significantly cheaper again. This will probably remain wishful thinking, and the crisis in the logistics sector will worsen in light of current events.
Not a good outlook. Companies with sufficient liquidity and storage capacities are clearly at an advantage, as they can build up further stocks. All other companies are facing difficult times. But what should a Ukrainian say at this point? Complaining at a high level!
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