Ukraine's refined sunflower oil exports expected to fall 8.6% in 2023/2024 season - analyst

MOSCOW. Nov 10 (Interfax) - Ukraine's exports of refined sunflower oil are expected to drop by 8.6% in the current agricultural year after growing by 7% in the 2022/2023 season, Ukrainian media reported, citing agency UkrAgroConsult.

Overall sunflower oil exports are expected to fall 7.6% in the 2023/2024 agricultural year, the agency said in a press release.

The agency said that shipments of refined oil were fairly stable throughout last season. The share of refined oil exports in total exports shrank but remained one of the highest at 9.7%.

"In 2022/23, the low sunflower seed harvest, power outages, problems selling products and the low throughput capacity of the [Black Sea] 'grain corridor' were compounded toward the end of the season by the absence of this [export] route and the exacerbation of logistics problems. The large carryover reserves of sunflower seed and finished product that were initially seen as a burden compensated for the decline in harvest and enabled the industry to work and increase exports of our strategic commodity - sunflower oil," UkrAgroConsult vegetable oil market analyst Svetlana Kupreyeva was quoted as saying in the release.

"Some players chose refining as a way to solve current problems and keep their business running," she added.

The agency said Ukraine managed to maintain a broad geography for refined oil exports, shipping to about 120 countries. The European Union's share of these exports shrank to 40% from 45% a year earlier. Leading markets included Turkey, Malaysia and Jordan.

Industry association Ukroilprom said earlier that Ukraine increased production and exports of sunflower oil by 25.4% year-on-year in the 2022/2023 agricultural year, but it did not provide absolute figures.