Last updated on April 20, 2014 at 14:04 EDT

Ukraine Becomes World’s Largest Sunflower Oil Exporter

October 14, 2011

KYIV, Ukraine, October 14, 2011 /PRNewswire/ –

Ukraine has become the number one sunflower oil producer and exporter in
the world, reports Erste Bank. In 2010 Ukraine produced 3.3 million tons of
sunflower oil, having exported over 90 percent of this amount. The country
is now producing the same volume of sunflower oil as the whole Soviet Union,
according to the Director of the Ukrainian association of the producers of
the vegetable oils Ukroilprom, Stepan Kapshuk.

The Ukrainian sunflower oil market has been growing steadily in the
current year. Compared to the first quarter of 2010, the volume of the
Ukrainian sunflower oil exported in the first three months of 2011increased
by 40 percent.

The top consumer of Ukrainian sunflower oil is India – the country
acquires around one quarter of the annual Ukrainian sunflower oil export,
according to Ukragroconsult. Also, Ukraine exports large volume of sunflower
oil to Turkey, Egypt, the Netherlands, Russia, Italy, Spain, Belarus, Saudi
Arabia, Georgia.

Suffice it to say that in 2009 Ukraine exported little over 1 million
tons of sunflower oil that constituted over a half of world’s sunflower oil
export – namely, 54 percent, according to Ukragroconsult. By the end of 2010
Ukraine reached the 57 percent share in the global sunflower oil export.

More than a decade ago Ukraine began stimulating its sunflower oil
producing industry by introducing export tax for the sunflower seeds. This
created notable incentives for the domestic sunflower oil producers to boost
sunflower oil production inside the country instead of exporting the raw
product to the foreign processing plants. Since then, Ukraine has been
gradually decreasing the export tax.

Sunflower oil production in Ukraine started in the middle of the 19th
century. The environmental conditions and terrain characteristics of the
country allow for the cultivation of the sunflower across the entire
territory of Ukraine.

The world sunflower oil market is currently growing to compensate for a
decline of the rapeseed supply. On this market Ukraine is competing with the
long-established leaders – Argentina and Russia. While Russia is increasing
its sunflower seeds production and thus creates the potential for the boost
of its sunflower oil production, Argentina is facing the ongoing problems
with draught and the confrontation between the farmers and local government.

SOURCE Worldwide News Ukraine

Source: PR Newswire