Rapeseed processing in Ukraine hits three-season high

The volume and pace of rapeseed processing in Ukraine in 2021/22(July 2021-June 2022) are not only higher than in the previous season, but make the highest for the last three seasons, being just slightly (-0,3%) behind the record volume of 2018/19, estimates Svetlana Kirichok, the APK-Inform consultancy analyst.

This season's output grew against the backdrop of increased demand and high prices for rapeseed oil in the global market, she marks.

"By our estimates, in July-August 2021/22, 284 thou. t of rapeseed were processed in Ukraine, 48% up YoY. In July, the volume of crushing for the first time for the reporting month since 2006/07 exceeded the volume of export, amounting to 79.5 thou. t, according to our estimates, compared to 52 thou. t of export," explains Svetlana Kirichok.

Read more: Top 10 rapeseed processors in Ukraine in July-August 2021/22

With stronger demand for Ukrainian rapeseed in the ports, this season it is more complicated for processors to compete with traders, and, accordingly, a steep increase in processing by the end of the season is not expected, despite the growth of rapeseed production in the country.

The global rapeseed market and Ukraine's place in it (click for higher resolution). Source: UBTA

As per APK-Inform estimates, this figure will be even more dependent on the market supply and in general in 2021/22 could be about 330-340 thou. t (+6% YoY).

Previously reported that Kernel chose to switch to rapeseed processing in Q1 FY2022 as a result of weak supply of sunflowerseeds to fully utilize its capacities.


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