All about buying, exporting oilseeds (sunflower seed & oil, rapeseed) from Ukraine Buying oilseeds, sunflower, oil, rapeseed  from Ukraine

General overview and key indicators.

The sunflower oil prices in the Eastern Europe and the CIS countries are much higher than in Ukraine. Therefore, Ukraine is the largest sunflower oil exporter in the world - 3 million tons per year, covering 60% of world consumption. Sunflower oil primarily exported to the Eastern Europe and the CIS countries.

Volumes of sun oil exports from Ukraine:
sun oil exports (mln tons)/ marketing year

The planted area of sunflower seed in Ukraine has increased dramatically from 2.500 hectares in 2001 (yield 1 MT per hectare) to almost 5.500 hectares in 2012 (yield almost 2 MT per hectare). In 2012 sunflower sown over 2.492 million hectares in Ukraine. Compared to the same period last year the pace of sunflower planting have grown by almost 20%. In 2012 soybeans planted on 650 thousand hectares. The rate of soybean planting in Ukraine has also increased comparing to last year by 35%. We believe that in 2012 sunflower crops in Ukraine will make 5.7 million hectares and soybean - 1.35 million hectares.

Currently oilseed profitability in Ukraine is 100%. Ukraine does not apply export duty to oilseed commodities. However, according to Tax Code export VAT (20%) shall not be reimbursed in case of export of oilseed commodities.

In 2008-2009 Ukraine supplied a record number of rapeseed for export, over 20% of total world exports of this product and profitability reached 270%.
The area under rape seeds increased at that time to almost 4 million hectares, compared with less than 50 thousand hectares 10 years before that.
The rise in demand was because of the exports to the EU countries, especially Poland, Austria and Germany. The import included so-called gray rape and in the Europe the oil was produced therefrom, which further added to the fuel.
In 2010, exports of rapeseed amounted to nearly 630 million dollars.
But some years ago, the situation has changed. In Europe, for instance in Germany, the need for biofuel production has changed. In 2011, production of biodiesel in the EU fell by more than 6%.
First, the authorities allowed using as raw material for biodiesel genetically modified rapeseed Canadian canola. Secondly, the EU preferred imports of finished biodiesel, mainly from Argentine soy beans and Indonesian palm methyl ethers.
As a result, the demand for Ukrainian raw materials rapidly fell and by the end of 2011 domestic exports of the product decreased to 1.4 million tons. Also the cost of cultivation increased because of the price of fertilizers, since due to the high nitrogen content, rape eats away the soil.
Therefore in 2011, profitability of rapeseeds production has fallen to 13%.
Now rapeseed makes about 3.5% of all sowings (yield) in Ukraine. Average profitability of its production in our country is approx. 30%, which makes it possible to compensate for the lower profitability of other crops.
95% of the produced rapeseed keeps going for export to the EU and Asian countries - Turkey, Pakistan, Bangladesh.
Along with biodiesel from rapeseed the interest in ethanol produced from corn and sugar beets has increased.
The land area under rapeseed is now reduced, and it looks like the threat of global depletion of soil slightly receded. However, the land reform adds fears for the future of soil, because the profitability of oilseeds is over 100%, while in cereals is 60%, and sugar beet - 25%.

Rapeseed is highly demanded by Poland, Germany and Austria for biodiesel production. In 2008-09 Ukraine exported 20% of world rapeseed volumes with 270% profitability. Since 2010 the EU has started buying Canadian GMO rapeseed (canola). So in 2011, profitability has fallen to 13%. Now rapeseed planted area is only 3.5% and 95% of rapeseed crops is exported to the EU, Turkey, Pakistan, Bangladesh, Japan, Germany, Mexico.

Ukrainian port handling capacities almost 2 times exceed current export rates. Ukrainian storage capacities also slightly exceed current exports. Therefore, Ukraine has strong position and may further develop its oilseed export.

Bearing in mind that up to 2070 the world population will double as well as shortage of arable lands will only increase, Ukrainian oilseed (sunflower seed & oil, rapeseed) market has great potential for expansion.

You can study FREE OF CHARGE average Ukrainian export prices for oilseeds (sunflower seed & oil, rapeseed) here.

Should you need any help on import of oilseeds (sunflower seed & oil, rapeseed) from Ukraine, feel free to contact us through our web site Our professional managers are always ready to assist you in this matter. Because we perfectly know Ukrainian market, we can save you a great deal of time and money, help you to make right decision and prevent fraud.

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