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24 March 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 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2016/17
Initial stocks 205 357 255 925 663 594 764
Harvesting area, thsd ha 6 594
6 796
7 331
7 867
7 973
8 377
8 247
Yield, с / ha 1,85 1,77 2,19 2,06 2,11 2,27 2,19
Production 12 2016 12 017 16 034
16 213 16 849
19 036 18 044
Import 29 27 20 31 22 18 17
Total supply 12 439 12 401 16 309
17 168 17 535
19 648
18 824
Export 2 827
2 627
3 584
4 435
3 808
3 330
4 128
Processed into oil 8 300 8 268 10 534 10 843 11 960 14 250 12 534
Industrial consumption 425 620 701 641 581 671 601
Seeds  211 209 206 246 290 307 301
Losses  320 255 360 340 302 326 294
Domestic distribution 9 256 9 353 11 801 12 070
13 133 15 554 13 730
End stocks 357 421
925 663 594
764
966
Stocks,% of domestic distribution 3,85% 4,5% 7,83% 5,49% 4,53% 4,91% 7,03%
Losses,% of supply 2,57% 2,06% 2,21% 1,98% 1,72% 1,66% 1,56%

Source: State Statistics Service of Ukraine 

Sunflower

Sumflower balance, thsd t 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18*
Initial stocks 167 245 131 624 318 374 426
Harvesting area, thsd ha 4 712 4 837 5006 5209 5166 6 075
5 581
Yield, с / ha 1,84 1,63 2,19 1,94 2,16 2,24 2,09
Production 8 670 8 387 10 941 10 133 11 181 13 605
11 720
Import 13 20 15 21 15 10 8
Total supply 8 850 8 652 11 087 10 778 11 514 13 989
12 154
Export 282 200 80 50 45 80 50
Processed into oil 7 955 7 854 9 833 9 920 10 640 12 950 11 134
Industrial consumption 125 120 200 150 150 190 150
Seeds  44 44 50 50 55 63 58
Losses  200 150 300 290 250 280 250
Domestic distribution 8 324 8 168 10 383 10 410 11 095 13 483 11 592
End stocks 245 284 624 318 374 426 512
Stocks,% of domestic distribution 2,9% 3,5% 6% 3,1% 3,4% 3,2% 4,4%
Losses,% of supply 2,3% 1,7% 2,7% 2,7% 2,2% 2% 2,1%
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 2011/12  2012/13 2013/14 2014/15 2015/16 2016/17 2017/18*
Initial stocks 27 32 22 220 281 179 141
Harvesting area, thsd ha 1 050 1 412 1 337 1 793 2 136 1 853 1 880
Yield, с / ha 2,1 1,71 2,05 2,17 1,84 2,31 2,21
Production 2 205 2 410 2 741 3 882 3 931 4 279 4 155
Import 3 2 3 4 3 3 3
Total supply 2 234 2 444 2 766 4 106 4 214 4 461
4 299
Export 1 337 1 249 1 261 2 422 2 353 2 510 2 300
Processed into oil 340 410 604 683 980 1 050 1 050
Industrial consumption 300 500 500 490 430 480 450
Seeds  160 160 150 190 230 240 235
Losses  65 90 30 40 42 40 38
Domestic distribution 865 1 160 1 284 1 403 1 682 1 810 1 773
End stocks 32 35 220 281 179 141 226
Stocks,% of domestic distribution 3,7% 3% 17,1% 20% 10,7% 7,8% 12,7%
Losses,% of supply 2,9% 3,7% 1,1% 1% 1% 0,9% 0,9%

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 2011/12 2012/13 2013/14 2014/15 2015/16* 2016/17 2017/18
Initial stocks 11 80 102 80 64 41 197
Harvesting area, thsd ha 832 547 988 865 671 449 786
Yield, с / ha 1,6 2,2 2,4 2,5 2,6 2,6 2,8
Production 1 331 1 220 2 352 2 198 1 738 1 152 2 169
Import 13 5 2 6 4 5 6
Total supply 1 355 1 305 2 456 2 284 1 807 1 198 2 371
Export 1 208 1 178 2 243 1 963 1 410 740 1 778
Processed into oil 5 4 96 240 340 250 350
Industrial consumption 0 1 1 1 1 1 1
Seeds  7 5 6 6 5 4 8
Losses  55 15 30 10 10 6 6
Domestic distribution 67 25 133 257 356 261 365
End stocks 80 102 80 64 41 191 228
Stocks,% of domestic distribution 119,4% 409,6% 60,1% 24,9% 11,4% 75,3% 62,4%
Losses,% of supply 4,1% 1,1% 1,2% 0,4% 0,6% 0,5% 0,3%
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: 
Olga Kharabara
Tel.: ‎‎+380 (44) 236-20-95 
e-mail: kharabara{@}ucab.ua