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Ukrainian sunflower oil prices have seen a notable escalation, reaching significant local highs in August. Retail consumers in many parts of the country observed refined sunflower oil bottles exceeding 100 UAH, with market analysts projecting potential shifts as early as the autumn season.
Data from recent research indicates that the consumer price index for sunflower oil surged by 1.89% in August alone, registering at 101.89%. Across major supermarket chains, an 850 ml bottle of refined oil is currently retailing between 95 and over 100 UAH. Specific examples include 'Auchan' at 102.50 UAH, 'Novus' at 99.80 UAH, 'Metro' at 99 UAH, and 'Megamarket' listing at 105.50 UAH. While some brands are still available at promotional rates, ranging from 85 to 89 UAH per bottle, most popular brands without discounts are now priced between 105 and 109 UAH.
Several key factors are contributing to this upward price trend. Elevated global demand for Ukrainian sunflower oil is a primary driver, coupled with the near-complete depletion of last year's seed reserves. Additionally, rising operational expenses for production and logistics are impacting the final cost. The situation has been further exacerbated by recent Russian military actions targeting Black Sea port infrastructure, disrupting operations for major agricultural enterprises such as 'Kernel' and 'Olsid'.
The damage to critical infrastructure has led to increased operational costs, financial losses, and restricted access to necessary financing, collectively driving up the overall production expenses for sunflower oil.
Analysts anticipate that August will mark the period of most significant price pressure. However, they foresee a potential improvement in market conditions towards the end of September and throughout October. This timeframe is expected to coincide with the active processing of the new sunflower harvest, which should substantially boost the supply of raw materials. This increased availability, in turn, may lead to a gradual reduction in the cost of finished oil products or at least contribute to price stabilization.
Source: finway.com.ua