What are oilseeds?
Oilseeds, such as sunflower, are plants whose seeds or fruits produce oil that is used both in the food industry and for technical purposes. They are an important component of the agricultural sector, as they provide significant profits due to the high demand for oil on both domestic and foreign markets.
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Types of oilseeds
Oilseeds play an important role in the global agricultural and food industries. They are a source of vegetable oils used for food, technical and cosmetic purposes, as well as in medicine and energy. Due to their high energy and nutritional value, oilseed products provide the body with essential fatty acids, vitamins and antioxidants. The diversity of oilseeds allows to adapt their cultivation to different climatic conditions, which contributes to the profitability of the agricultural sector. In this section, we will look at the main types of oilseeds, their characteristics, main growing regions and importance for agriculture and industry.
Sunflower
Sunflower is the most common oilseed crop in Ukraine. In which climate zone is sunflower grown? Sunflower is grown in the steppe and forest-steppe zones. The price of sunflower is forecast to be stable in 2024 due to high demand for sunflower oil on both domestic and foreign markets.
In 2024, the purchase price for sunflower oil will be UAH 15,000-16,000 per ton. Sunflower oil exports remain one of the key areas of Ukraine’s agricultural sector.
Rapeseed
Rapeseed is an important oilseed crop that is suitable for growing in temperate climates. The price of rapeseed is expected to rise in 2024 due to the increased demand for biofuels made from rapeseed oil.
In 2024, the purchase price for rapeseed oil will be UAH 17,000 per ton. Exports of rapeseed and its products are an important source of foreign exchange earnings for Ukraine.
Soybeans
Soybeans are an oilseed crop that is grown in various climatic zones, including temperate ones. In 2024, soybean prices may rise due to increased demand for soybean oil and protein.
In 2024, the purchase price for soybean oil will be UAH 28,000-30,000 per ton. Ukrainian farmers are actively expanding the area under this crop, which has a positive impact on the country’s export opportunities.
Mustard
Mustard is an oilseed crop that is less widespread in Ukraine, but has its own advantages, including high resistance to drought.
In 2024, the price of mustard will remain stable, but it may increase due to the growing interest in alternative oilseeds. In 2024, the purchase price for mustard oil will be 22000-32000 UAH per ton.
Flax
Flax is a traditional oilseed crop for Ukraine, grown in temperate climates.
The price of flax for 2024 is projected to remain at the level of previous years, but may increase due to increased demand for flaxseed oil and fiber. The purchase price for flaxseed oil is UAH 35,000 per ton.
Oilseeds reorientation trend 2024
In 2024, there is a trend towards reorientation of farmers to growing oilseeds. This is due to several factors:
- High demand for oilseeds on both domestic and foreign markets.
- Relatively high profitability of growing oilseeds compared to other crops.
- Resistance of some oilseeds to adverse weather conditions.
- Lower storage requirements.
According to the Ministry of Agrarian Policy and Food of Ukraine, approximately 5 million hectares of winter crops will be planted this fall, down 5% from last year and almost half the pre-war figures.
In general, it is now more profitable to grow sunflower and rapeseed, as these crops are in the highest demand and have stable prices.
Export of oilseeds
Exports of oilseeds remain one of the key areas of Ukraine’s agricultural sector. Sunflower oil, rapeseed and soybeans are the main export products. Ukraine continues to strengthen its position in the global oilseeds market thanks to high quality products and efficient logistics.
Global oilseed prices, which have been rising over the past few years, came under pressure in 2023. The opening of a new shipping corridor in the Black Sea region increased supplies from Ukraine. This led to a reduction in the shortage and lower prices.
According to the Ukrainian Agribusiness Club, Ukraine’s oilseed exports in 2023 decreased by 6% to 7.4 million tons. This is still 95% more than in 2021, which is explained by forced factors: an increase in oilseed production.
It is important to note that in 2024, the Cabinet of Ministers of Ukraine updated the list of goods subject to licensing and quotas. The list of oilseeds that will require a license for export in 2024 includes:
- Soybeans, crushed or uncrushed (1201)
- Rapeseed or kohlseed, crushed or uncrushed (1205)
- Sunflower seeds, crushed or uncrushed (1206 00)
- Soybean oil and its fractions, refined or unrefined (1507)
- Sunflower, safflower or cottonseed oil and fractions thereof, refined or unrefined (1512)
- Rapeseed or mustard oil and fractions thereof, refined or unrefined (1514)
- Oil cake and other solid waste and residues obtained during the extraction of vegetable fats and oils (2306)
The decline in oilseed prices and increased supply on the global market is expected to continue through 2024. This may lead to a further decline in exports from Ukraine, but at the same time will stimulate domestic processing and demand for Ukrainian products from countries seeking to diversify their sources of oilseeds.
Conclusions.
Oilseeds play an important role in Ukraine’s agricultural sector. In 2024, farmers should focus on growing sunflower, rapeseed, soybeans, mustard, and flax. The growing demand for these crops on both domestic and foreign markets ensures their high profitability. Shifting to oilseeds could be a strategically beneficial solution for Ukrainian farmers.
