Sunflower Seed To Supply Domestic Needs Only

This year’s sunflower seed crop will be significantly less than last year, when 3,300,000 tons were harvested. Now experts forecast no more than 2,100,000-2,200,000 tons. The reason for this was primarily the reduction of cultivated area from 2,900,000 hectares in 2000 to 2,200,000. “Last year farmers did not know where to get rid of their sunflower; prices bottomed out. In Kirovohrad and some other oblasts lines to the elevators were three or four kilometers long. That is why this year nobody planted sunflower,” President of the Association of Farmers and Land Owners Ivan Tomych told The Day. At the same time he expressed confidence that there will still be enough sunflower in Ukraine to supply domestic needs.

In the opinion of Olimpeks Ltd. Vice President Mykola Vernytsky, the fact that last year’s high prices on the cereals made grain more attractive for producers also contributed to reducing sunflower cultivation. He noted that productivity of sunflower this year will also be less (ten centners per hectare vs. last year’s 11.8), which is caused by unfavorable weather conditions during vegetation (cold weather at the start, then heat and drought in July, followed by rain). Mr. Vernytsky believes that reduced supplies of sunflower will lead to the substantial growth of domestic prices for it and then for its products, oil and oilseed meal.

The prospect for exports also look disappointing. According to expert forecasts, foreign sales will either be insignificant or stop. Mr. Tomych tends not to overly dramatize the situation, opining that because of high domestic prices the need to export is now quite low. “We will offer oil for export, because by exporting only seed, we loose $100 per ton. We need for it to remain at our refineries, which are able to process the entire harvest,” Deputy Director of the Department of Plant Growing Markets and Seed Growing Development at the Ministry of Agricultural Policy Petro Pasichnyk told The Day. However, he admitted that such a problem exists, because there is little demand for our sunflower oil on foreign markets, unlike seed.

INCIDENTALLY

In July 2001 Ukraine exported 24 times less sunflower seeds than in July 2000 — 1,600 tons worth $3,600,600 (compared to 38,700 tons and $6,700,000 in July 2000), the Ukroliyaprom (Ukrainian {vegetable} Oil Industry) trade association told Interfax-Ukraine. In the opinion of organization experts, the reduction of seed exports is caused by a seasonal cutback of offers on the domestic market and active duty-free sunflower seed exports early this year. According to the association’s data, 1,025,000 tons of sunflowers were exported from September 2000 to July 2001, while in July 1999-September 2000 it was 403,700 tons.