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The Ukrainian vegetable oil industry is facing a significant decline in production and export volumes as a direct consequence of ongoing maritime logistics restrictions. Stepan Kapshuk, Director General of the Ukroliyaprom Association, highlighted the growing pressure on the sector in a statement to RBC-Ukraine, noting that the inability to utilize sea routes is severely hampering the flow of finished goods.
According to current estimates, sunflower oil exports could drop to 300,000 tonnes per month from the usual 500,000 tonnes, while exports of rapeseed and soybean oil are projected to reach only 50,000 to 60,000 tonnes. Kapshuk emphasized that the lack of export certainty is stalling the market, as processors are hesitant to purchase raw materials without a clear path to international markets. While price declines have not yet fully materialized across the board, purchase prices for sunflower seeds have already softened to levels between UAH 18,000 and 20,000 per tonne.
In response to these challenges, Ukroliyaprom is urging the Ukrainian government to grant priority status to vegetable oil exports. The association points out the high economic value of oil, noting that a single rail wagon of oil generates seven times more foreign exchange revenue than a wagon of grain. These logistical hurdles are compounded by a processing season that is already running two to three weeks behind schedule due to adverse weather conditions.
Currently, Ukraine is moving approximately 300,000 tonnes of vegetable oil per month—only half of its historical volume—due to the suspension of maritime exports. Meanwhile, regional processing capacity is shifting; Kazakhstan currently possesses 5.4 million tonnes of oilseed processing capacity, with projections suggesting a reach of 9 million tonnes by 2029 as new facilities are commissioned and existing plants expand.
Source: AgroPortal.ua