Refined sunflower oil is in no less demand than its “classic”, unrefined version.
The main suppliers of refined sunflower oil
The world trade in sunflower, as a rule, is concentrated in only a few countries, where this crop is prone to active growth. This happens in a temperate climate with good soil characteristics, therefore Ukraine, Russia and Argentina can be distinguished among the main suppliers of this product. According to statistics, Europe most often buys this product from Ukraine, therefore our producers stand out favorably against the background of others due to the quality and taste characteristics of the oil.
According to Ukroliyaprom, in 2019 Ukrainian producers increased the production of refined sunflower oil by 7.7% and this trend will continue to grow. By the way, the export of sunflower oil also increased by 13.5%. According to the results, the largest Ukrainian manufacturers include Bunge LLC (6.8% of the market), Agrokosm (6.3%), and Vinnitsa MZhK CJSC.
For Ukraine, the EU is the second largest buyer of local refined oil.
Refined sunflower oil import trend
Let us turn to the statistics of recent years: if in 2016 the EU purchased only 1.4 million tons of sunflower oil, then literally 4-5 years later this need is already 2 million tons. Accordingly, it can be assumed that in the future, the growth of exports of sunflower oil from Ukraine to European markets will only grow in connection with the constantly increasing demand. What should local farmers do to enter EU markets? The Ukrainian Grain Association advises businessmen to take seriously the new standards for the content of chlorpyrifos – otherwise, Ukrainian exporters may be left without sales markets.
Demand for refined sunflower oil in the EU
In order to enter European markets, Ukrainian producers need to take into account some of the specifics of doing business in the EU. In particular, all products must comply with the regulatory requirements adopted in the European Union. This implies that sunflower processing should take place according to clearly regulated criteria, which, by the way, will change somewhat from 2020. In particular, growers will have to closely monitor the content of chlorpyrifos-ethyl and chlorpyrifos-methyl in crude oil and selected oilseeds.
However, even such requirements will certainly not stop local entrepreneurs, because by 2020 Ukraine supplies as much as 90% of the total volume of sunflower oil for the EU market. Of course, the new regulations require additional documents, but even a new certification is unlikely to stop the already running processes.