15:02 14.04.2015

Sunflower seed processing in 2014-2015 MY will end early due to limited supplies

2 min read
Sunflower seed processing in 2014-2015 MY will end early due to limited supplies

The price of sunflower seeds has been going up for several weeks in a row against the backdrop of limited supplies, Derzhzovnishinform state enterprise has said in a press release.

The purchase price of sunflower seeds from April 2 to April 8, 2015 rose by an average of UAH 600 per tonne; so now farmers pay UAH 9,600-10,000 per tonne on EXW terms, the press release said.

Prices for agricultural producers on CPT terms are UAH 10,000-10,300 per tonne.

"Many market operators can't afford this price and fall out of competition, thus ceasing sunflower oil production," the press service said, citing agricultural department expert Yevhen Tomashevsky.

He said that sunseeds production in the 2014-2015 marketing year (MY), which is September through August, totaled 10.1 million tonnes, which was 1 million tonnes less than the previous MY. At the same time, the processing capacity in the country rose to about 14-15 million tonnes, according to various estimates, which greatly exceeds the volume of available raw materials for processing and stimulates competition.

"Some market operators also report insufficient supplies at processing enterprises. Considering the situation, sunflower processing this season will be completed well before the projected schedule," Tomashevsky said.

As reported by the State Statistics Service of Ukraine, sunflower seed supplies as of March 1, 2015 amounted to 3.6 million tonnes, which is 25% less than the same date in 2014.

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