Ukraine's vegetable oil exports halve due to maritime logistics problems

Ukraine is currently exporting around 300,000 tons of vegetable oils per month due to the suspension of maritime exports, half the volume recorded before problems with maritime logistics emerged. Limited export capacity has become one of the main factors behind the decline in sunflower seed purchase prices, Stepan Kapshuk, director general of the Ukroilprom association, told NV Business.

According to Kapshuk, Ukraine is exporting 5,000-7,000 tons of sunflower oil per day in August. Another 2,000-3,000 tons comprise rapeseed and soybean oil.

“Overall, we are able to export about 8,000 tons per day, or up to 300,000 tons per month. That is half the volume before maritime exports were halted,” Kapshuk said.

He said difficulties in shipping finished products had become the key reason for the decline in sunflower seed purchase prices. The market is facing logistical problems, a shortage of transport and insufficient storage capacity.

Ukroilprom expects the logistics situation to stabilise within the next two to three weeks.

At the same time, Ukraine's vegetable oil production could reach 7 million tons this year. Domestic consumption stands at around 300,000 tons, so the association sees no risk of a shortage on the domestic market.

“There will be no shortage, and there is no reason for the public to panic,” Kapshuk said.