Ukraine's Sunflower Oil Exports Plummet Amid Blocked Sea Routes

Ukraine's sunflower oil exports have been severely impacted by blocked sea routes, resulting in a significant drop to half their previous volume. According to Stepan Kapshuk, CEO of Ukroliyaprom Association, the country is now exporting around 300,000 tons of sunflower oil per month, down from its pre-halt level.

The decline in exports has led to a collapse in domestic sunflower seed procurement prices due to difficulties in exporting processed vegetable oil. However, Kapshuk expects these logistical issues to be resolved within two to three weeks.

Despite the current challenges, Ukraine's domestic vegetable oil production is expected to reach 7 million tons by the end of the year, with a surplus of over 6 million tons for domestic consumption. The country has also seen a significant surge in logistics costs, which has made traditional routes unprofitable and forced exporters to reroute shipments.

Kapshuk emphasized that there is no risk of a domestic shortage or cause for public concern, as the domestic market only requires around 300,000 tons of vegetable oil.