Ukraine can become key supplier of oilseeds to EU – expert

Ukraine can become a key supplier of oilseeds and their processing products to the EU countries, says the Institute of Agrarian Economics National Research Center

The EU is only able to cover some two-thirds of own demand, the Center's press service reported with reference to Artem Pedorchenko, the expert with the pricing and agricultural market department.

"Provided that products of appropriate quality are offered at a competitive price, Ukraine has a chance to win the place of a key supplier of oilseeds and their processing products to the European Union member states," the expert said.

Local producers only cover 58% of the EU needs as the bloc annually imports about 22 million tonnes of oilseeds and their processing products.

At the same time, Ukraine has over the past six years been increasing oilseeds export to the EU. In the first half of 2020, exports of Ukrainian oilseeds to the EU reached $145 million, 74% up on year, while the export of oils and fats amounted to almost $960 million, which is higher than last year's figure by 2.3 times.

Read alsoForecasts released for 2020 grain, legumes harvest"In the third and fourth quarters of 2020, noticeable shifts in the volumes of supplies, money- and volume-wise, are likely, which will be due to the supply of the new season's harvest, which began for rapeseed in July, and for soybeans and sunflower seeds in September, as well as the rise in prices for these types of agricultural products on world markets," the report says.

Oilseeds in Ukraine: Background

• According to the Ukroliyaprom Association, Ukraine at the end of the 2019-2020 marketing year (MY, September 2019 - August 2020) became a global leader in the export of sunflower oil.
• Exports of major types of vegetable oils rose to $5.28 billion, which is 16.9% more than in the previous season.