Ukraine: Rape processing in the current year will decrease by 13%

The forecast for the amount of processing for the entire current marketing year will reach the level of 138 thousand tons, which is 13% less than for the entire previous marketing year.

Such information was provided by APK-Inform.

The report also says that during the first half of the current MY, 127.000 tons of rapeseed were processed in Ukraine, while during the same period last year 140.000 tons were processed.

The amount of processed rapeseed has been decreasing for several seasons, as profitability is low. Raw materials are quite expensive, and the price of rapeseed oil in export markets is low.

It should be recalled that in 2017, 64.200 t of rapeseed oil was supplied from Ukraine to the foreign markets. The sum of delivery was almost 50 million tons.

This year, Ukraine will reduce the production of rapeseed oil by 13%. According to experts’ forecasts, this reduction is explained by the fact that against the backdrop of rising prices for raw materials in world markets, domestic oil producers are faced with restrictions on the supply of raw materials.

This may lead to an increase in prices in the domestic oil market and a possible increase in imports. In addition, a decrease in rapeseed processing may affect the export performance of the agricultural sector of Ukraine.

According to statistics, in 2020, rapeseed processing in Ukraine amounted to 1.1 million tons. The reduction in butter production may have a negative impact on the income of agricultural producers and companies associated with the agricultural sector.

However, Ukrainian producers have the potential to diversify production and switch to the processing of other oilseeds, which can contribute to the sustainability of the agricultural sector as a whole.