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 |
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 |
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 |
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 |
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