Challenges of the Ukrainian Sunflower and by-products Exports

In this insightful interview, Sergiy Nevskyy, the Senior Commercial Manager at Delta Willmar, takes center stage to discuss the implications of Bulgaria’s recent permission to import sunflower seeds from Ukraine. The interview dives deep into the potential impact on competition among exporters and processors within Ukraine.

Starting with an overview of past sunflower seed export statistics from Ukraine, Sergiy elaborates on the current situation. The discussion encompasses the bans on grain and sunflower imports in the bordering EU countries, and Bulgaria’s decision to open its borders with specific import limits due to the deficit of sunflower seeds in Bulgaria.

Sergiy delves into the complexities of the Ukrainian crush industry, highlighting the challenges it faced due to the war and subsequent infrastructure attacks. He emphasizes the shift in crush margins, anticipating a lower margin compared to previous seasons. The interview touches on the ongoing impact of the war on infrastructure and the resulting carryover of seeds from previous seasons.

The conversation then shifts to the changing geography of Ukrainian oil and meal exports due to the blockade of seaports. Sergiy details the shift to Izmail and Reni ports and the altered routes to accommodate smaller vessels. He analyzes the decrease in the share of China and other Asian countries in favor of European countries.

Sergiy sheds light on creative solutions adopted by some companies to maintain exports through Romania, and he explains how this affects the apparent origin of the exported oil. The interview explores the challenges faced by Ukraine in meeting demand, especially from China, and the logistical issues affecting the industry. In conclusion, Sergiy provides valuable insights into the changes in oil export routes and expectations for future demand.