Ukrainian Sunflower Harvest Sees Significant Decline
The Ukrainian Association of Agro-Industry has revealed that this year's sunflower seed harvest has fallen to 10.8 million tons, representing a significant decrease compared to last year's harvest of nearly 15 million tons. This disappointing estimate comes as Ukraine remains one of the world's largest producers and exporters of sunflower seeds and oil, making this decline even more critical and impactful on the global market.
The association's forecast is significantly lower than the 12.5 million tons predicted by local producers. According to data from the Ministry of Agriculture, farmers had harvested 9.7 million tons of sunflower seeds by the end of the first week of November. The discrepancy between producers and official statistics regarding the actual volume of the sunflower seed harvest stems from the fact that authorities believe farmers are hiding up to 1.5 million tons of sunflower seeds not included in official reports.
The country's oilseed processing capacity is much higher than the harvest volume, and some small refineries often purchase sunflowers outside the official market to avoid paying taxes and remain competitive with newer and more productive refineries.
On the markets, this could give a boost to prices, which is not in favor of importing countries like Tunisia. This product is sensitive and expensive, and it represents a headache for the Ministry of Commerce. This trend risks increasing inflation and swelling the subsidy bill. In short, everything that is undesirable for the economy.
