Rapeseed processing volumes in Ukraine reached the maximum over the past 3 seasons
Traditionally, the volume of rapeseed processing in Ukraine is relatively low and amounts to no more than 12% of the total supply of raw materials in the domestic market. At the same time, in the 2021/22 season, the volumes and rates of processing in the country, against the background of increased demand and high prices for rapeseed oil in the world, not only exceed the indicators of the previous season, but also became the maximum for the last 3 seasons, only slightly yielding to the record volumes of processing in 2018/19 MY (-0.3%).
Svetlana Kirichek, an analyst at APK-Inform news agency, reports.
“In July-August 2021/22 MY, taking into account our revaluation, 284 thousand tons of rapeseed were processed in Ukraine, which is 48% higher than in the same period of the 2020/21 season. At the same time, in July the volume of processing for the first time for the reporting month since the 2006/07 season exceeded the volume of exports, amounting, according to our estimates, to 79.5 thousand tons against 52 thousand tons,” she said.
However, according to the analyst, given the increased demand for Ukrainian rapeseed in ports, the current season for processing companies is somewhat more difficult to compete with traders, and, accordingly, a significant increase in processing by the end of the season is not expected, despite the growth in oilseed production in the country. According to our estimates, this indicator will be significantly limited in the future by the supply on the market and in general in 2021/22 MY it may amount to about 330-340 thousand tons (+ 6% against the 2020/21 season).
“Note that in Ukraine, oil processing is carried out by practically the same companies that have well-established sales channels within the country or in the external market. New companies rarely enter the seed processing segment. This season, of the new ones, it is worth highlighting the Pridneprovsky SEZ (traditionally engaged in sunflower processing), which, according to the results of July-August 2021/22 MG, topped the rating of rapeseed processors with a share of 17%," added Kirichek.