SUNFLOWER OIL MARKET IN UKRAINE: STATE AND CHALLENGES

Abstract

This paper aims to provide analysis of state and challenges of the sunflower oil market in Ukraine. To conduct purposes in the article, the significance of agriculture was highlighted and evaluation of Ukrainian sunflower oil market was done. Market research of sunflower oil market was divided on two periods: (1) before the russian invasion to Ukraine; (2) the period of the hostilities on the Ukrainian territory. The period until hostilities characterizes by growing tendency of sunflower oil production in Ukraine and increase of export capacities. Indeed, in 2020/2021 MY 5010 thousand t of sunflower oil was produced, where 93% was exported that is 40% on the world supply of sunflower oil on the market. At the same time Ukraine cover sunflower oil domestic needs, i.e. approximately 10% of total production. The indices of self-sufficiency ratio was increased each years and in 2020/2021 MY was equalled to 9.61%. The second period in Ukraine could be distinguish by problems, which negatively harm the sunflower oil market due to hostilities, i.e. disturbance of supply chains due to blocked ports; partially mined the territory and ongoing hostilities, which decrease harvested area under sunflower; increase prices of input factors for sunflower oil production; sunflower seeds and sunflower oil prices volatility. In turn, these lead to the situation, when sunflower products manufacturing, export and economic indices are unpredictable. Taking into account the fact that Ukrainian sunflower oil is export oriented product, accordingly on domestic market are influenced prices that formed at the world markets of vegetable oils. In the article the sunflower oil prices were forecasted for short time period. It showed price increase and at the end of the year could be reach to 1700 US dollar per tone. Indeed, positive trend on the world market will bring benefits for processing enterprises despite on uncertainty of country environment