In December 2024, Ukraine experienced a significant decline in sunflower processing, which is atypical for this period. According to APK-Inform, the total processing volume was about 1 million tons, which is 17% less than in November and is the lowest figure for December since 2014.
The main factors that influenced the reduction in processing were the strict policy of farmers regarding the storage of raw materials in warehouses. As a result, the decrease in sunflower production led to a significant decrease in oilseed stocks at enterprises. This created difficulties for processing plants, which experienced a shortage of raw materials for production.
Another factor was the negative trend in the export market for sunflower oil. Prices on world markets remained low, which prompted some processing enterprises to cease their activities in December. Factories have suspended operations until the price situation improves, hoping for an increase in raw material prices.
In the face of declining profitability from sunflower processing, some enterprises have chosen a different path and temporarily reoriented themselves to soybean processing. This has allowed them to maintain activity, but requires additional investments and adjustments to production processes.
Despite temporary difficulties, experts note that this situation may have long-term consequences for the agricultural sector of Ukraine. A decrease in sunflower production and processing may lead to a decrease in oilseed exports, which will negatively affect the country's foreign economic indicators.
It is worth noting that such fluctuations in the volume of crop processing are part of general trends in the agricultural market in Ukraine. Farmers and processing enterprises will be forced to adapt to new conditions that have arisen due to lower prices and changes in demand for products.
e-finance.com.ua