ProAgro prepared a new comprehensive research “Ukraine: Sunseed and Products Market”. Among other important market-related issues, sunflower seeds market and sunflower products, key market trends, risks and influence factors, price-setting and prices, domestic consumption trends are described.
General supply on the Ukrainian market of sunflower and its products is formed almost entirely on the basis of domestic production. Imports of sunflower products are nearly absent.
The main risks and influence factors that characterize and distinguish the sunflower complex from other spheres are weather, price and economic factors. In recent years, the administrative factor has also been well noticeable. Global warming also presents some risk for sunflower growing in Ukraine.
Since the 1990s, Ukraine has been one of the leaders in the world exports of sunflower products. Export prices for sunflower seeds and crushing products depend first of on the world situation, domestic supply and demand, currency rates and export restrictions (customs duties and previously – quotas and indicative prices).
Prices for all sunflower complex products depend on sales seasonality and the products quality. For example, the seeds quality is determined by such characteristics as the level of oil content, humidity content, contamination, etc.
During the recent five seasons, a relative stability of prices for sunflower seeds and oil has been observed only in MY 2004/05 (October-September). Over that season, production in Ukraine decreased by one quarter compared to the previous year that resulted in the increase of prices for those products already in the first month of the season, and the prices continued to remain relatively high. In general, prices for sunflower and its products are subject to substantial fluctuations during a season under the influence of internal as well as external factors.
In MY 2007/08, Ukrainian sunflower consumption decreased by 16% because of the decreased production and amounted to nearly 4.13 million tons. In terms of the channels of primary distribution of oilseeds, it should be said that the traders (mediators) purchase the larger part of the produced sunflower.
In Ukraine, the main domestic consumer of sunflower oil is the final consumer. Population buys about 65% of all the oil consumed in the state in crude or refined form. Over the recent years, per capita consumption of sunflower oil totaled 11-12 kg.
Sunflower meal (presscake) is one of the key feed components.
In general, in addition to the price policy, consumption and trade issues, the new research prepared by our company – “Ukraine: Sunseed and Products Market” – covers all topics related to sunflower as the key feedstock resource for Ukrainian oil and fat industry.
