Russia restricting sunflower exports despite expectations of a bumper crop

UkrAgroConsult

Article author:

Svitlana Kupreeva

Oilseed Market Analyst

In MY 2021/22 the sunflower harvest is a record. The following state regulatory measures were in place in MY 2021/22 to limit sunflower exports, curb domestic price growth and secure sunflower supplies to the processing industry.

Sunflower seeds exports decreased by 50% by MY 2020/21. Switching exports from EU countries, Turkey and China to EAEU countries such as Kazakhstan, Belarus and Armenia.

Domestic crush and vegoil production increased by 10%. 42% of total sunflower oil production is shipped abroad (62% a year earlier).  Sunflower meal exports decreased by 6%.

russia is entering the new season with lower sunflower stocks than expected due to slow harvest progress.

In MY 2022/23 the record areas of sunflower will allow to collect a record harvest, while the methods of state regulation will be applied in the new season as well:

• the 50% duty on sunflower exports outside the EAEU has been extended until August 31, 2023
• the duty on sunflower oil and meal exports has been extended until August 31, 2023, with a zero duty rate being in effect in October 2022.

russia’s long-term goal lies in further increasing oilseed production and processing. Although growing of alternative crops such as soybeans and rapeseed is encouraged by government subsidies, sunflower will retain its leading position.

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Tags: EU, Belarus, sunflower meal, Armenia, Russia, restrictions, China, crop forecast, sunflower oil, sunflower, Kazakhstan, Turkey, export