Ukraine's ag commodities export to China in 2022 at risk: Ukroilprom Director

Ukrainian agricultural producers will not be authorized to export products to the PRC if they are not registered with the Chinese government by January 1, 2022, reports.

The Director of the Association Ukroilprom Stepan Kapshuk urges the resolution of this issue for this year a record sunflowerseeds harvest is forecast in Ukraine, which will exceed 16 mln t. Sunflowerseed oil production in the country in 2021/22 is expected to reach 7 mln t.

Ukraine and China have well-established trade relations in a number of positions, including corn, wheat, sunflower oil, soybeans, meal, beef, poultry products (chicken and eggs), honey, fruits. Ukraine exports more than 1 mln t of vegetable oil to China.

"The crucial issue is the registration of companies or producers of vegetable oils with the Chinese customs service. Together with the SSUFSCP, our embassy in China we have applied to the customs service of China. No one knows what stage the applications are at now," says Stepan Kapshuk.

According to him, every third ton of sunflower oil produced in the world is a Ukrainian product. At the same time, every second ton of sunflower oil that is sold on foreign markets today is produced in Ukraine. Ukraine also supplies rapeseed and soybean oil to international markets. Last year, Ukraine entered the global rapeseed meal market.

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"This is a high-potential area. The share of oil and fat products in Ukraine's total export structure makes up 20%," marks Stepan Kapshuk.

Major importers of Ukrainian agricultural commodities in 2020 (click for higher resolution). Source: UBTA

The USDA in its November report projects sunflowerseeds production in Ukraine in 2021/22 at 17 mln t, sunflowerseed oil production at 7.117 mln t.

Crude sunflower oil production in Ukraine in 2020/21 totalled 4.7 mln t. Refined sunflower oil output by crushers in Ukraine made up 745.3 thou. t.


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