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25 May 2019

Oilseeds

Oil crops in Ukraine are gradually gaining popularity and changing the structure of acreage. During the last five years sowing area under oil crops increased by 1,8 million hectares, that is connected with an increase in the area under sunflower and soy, which are high-margin cultures.  Gross production of oilcrops in the current marketing year amounted to 19,4 mln tons, wich is 2 million tons more than the previous year. Due to what was an increase in production, see below.

Oilseeds balance, thsd t 2014/15 2015/16 2016/17 2017/18 2018/19
Harvesting area, thsd ha 7867
7 973
8735
8 828
8935 
Production 16213
16 849 20098
18330 21377
Import 31 22 23 41 45
Total supply 16 244
16871 20121
18371
21422
Export 4435
3808
4551
5076
4740
Processed into oil 10 843 11960 14350 12063 11353
Seeds  246 290 311 313 276
Domestic distribution 15524 16058
19212 17452 16369
* preliminary data
Source: State statistic service of Ukraine

Sunflower

Sumflower balance, thsd t 2014/15 2015/16 2016/17 2017/18 2018/19*
Harvesting area, thsd ha 5209 5166 6087 6061
6167
Yield, с / ha 2 2 2 2 2
Production 10133 11181 13627 12236
14164
Import 21 15 10 25 30
Total supply 10154 11196 13637 12260
14195
Export 50 45 191 73 59
Processed into oil 9920 10640 12950 11107 10142
Seeds  50 55 63 30 31
Domestic distribution 10020 10740 13204 11210 10231
* preliminary data
Source: State Statistics Service of Ukraine 

Gross production of sunflower this year has reached a record in 13,5 mln tons, which is 2,3 mln tons more than the previous marketing year. The increase of sowing area to a nearly record-breaking marks in 6 mln hectares and the growth of a productivity led to the a record croppage. Export of sunflower seeds is expected to be low, while the oil production rise to 12,7 mln tons.

The production cost of sunflower

Source: State Statistics Service of Ukraine 

The cost of sunflower production in 2014 accounted to 300 UAH/t. As was noted earlier, some manufacturers are paying more attention to such cultures as a sunflower, because its profitability in recent years was not lower than 20%, while in 2015 the profitability reached 80,5%.

Currently, there is a reduction in the price difference between the sunflower seeds, oil and meal.

Sunfloweroil is 2,1-2,2 times more expensive than the raw materials. While 3 years ago, the difference was 2,5-3 times.

The level of profitability of sunflower, %

Source: State Statistics Service of Ukraine 

High demand for sunflower seeds by the processing companies and demand on sunflower oil on the international market stimulates the growth of prices for raw materials. The value of sunflower seeds, unlike the prices on grains, reacts to change in prices quicker. The more detailed information about the situation on the market you can find in the section Analytics - Grains and oilseeds review.

Procurement prices for sunflower and products of its processing, UAH

Source: Price monitoring by UCAB


Soybean balance, thsd t 2014/15 2015/16 2016/17 2017/18 2018/19*
Harvesting area, thsd ha 1 337 1 793 1859 1982 1729
Yield, с / ha 2 2 2 2 3
Production 2 741 3 882 4277 3899 4461
Import 3 4 7 10 5
Total supply 3886 3934 4284 3909
4466
Export 2422 2 353 2510 2867 2241
Processed into oil 683 980 1050 878 987
Seeds  190 230 240 279 240
Domestic distribution 3295 3653 3800 4024 3468
* preliminary data
Source: State Statistics Service of Ukraine 

Areas under soybean in the last 5 years doubled, which is due to a high levels of the soybean production profitability and high demand in both domestic market, in the livestock sector, and foreign market. However, it should be noted that the production technology of soybean on the national level is not developed, which led to a decrease in the yield of soybean in the past marketing year and to a decrease in the sowing acreage this year.

The production cost of soybean

Source: State Statistics Service of Ukraine 

The cost of soybeans production is close to the cost of canola production, but the level of profitability is much higher and the markets are more advanced.

The level of profitability of soybean, %

Source: State Statistics Service of Ukraine 

The price for soybeans, demonstrates the rising trend, as the rest of the markets, due to an increase in the cost of production resources. Because the seeds, plant protection products, fertilizers, fuel, and other production materials over the past years have shown a tendency to growth that increased the cost of production and as a result – the final cost of soybeans.

Procurement prices for soybean, EXW, UAH

Source: Price monitoring by UCAB


Rapeseed balance, thsd t 2014/15 2015/16 2016/17 2017/18 2018/19*
Harvesting area, thsd ha 865 671 449 786 1039
Yield, с / ha 3 3 3 3 3
Production 2198 1738 1154 2195 2751
Import 6 4 6 6 10
Total supply 2204 1745 1160 2201 2760
Export 1963 1410 740 2136 2441
Processed into oil 240 340 250 78 224
Seeds  6 5 4 4 5
Domestic distribution 2209 1755 994 2218 2670
Source: State Statistics Service of Ukraine 

The amount of rapeseed production in Ukraine varies from year to year, due to the level of profitability and cost of production. The cultivation of rapeseed in Ukraine is currently focused on the EU market and the product is exported in the first months after harvesting. The exception was 2015, because the price of oil dropped significantly, the demand for rapeseed has decreased together with the price. As the result a part of the produced rapeseed remained in the country and was sent for processing. During the current marketing year in Ukraine there was produced 1,2 mln tons of rapeseed, which is 600 thsd tons lower than in the previous marketing year. Decrease in production was dealing with a large percentage of losses of rape during wintering.

The production cost of rapeseed

Source: State Statistics Service of Ukraine 

A low profitability and high cost of production reduce the popularity of this culture among farmers, compared to other more profitable crops.

The level of profitability of rapeseed, %

Source: State Statistics Service of Ukraine 

Rapeseed in Ukraine has a representative price in the period of harvest and several months after. From October-November price is primarily declarative because of low stocks.

Procurement prices for rapeseed, EXW, UAH

Source: Price monitoring by UCAB

For more detailed information, please contact: 
Tel.: ‎‎+380 (44) 236-20-95 
e-mail: survey{@}ucab.ua