Ukraine. Tropical oils market: peculiarities and prospects

UkrAgroConsult

Article author:

Svetlana Kupreeva

Oilseed Market Analyst

The Ukrainian market’s needs for refined coconut and palm oils are met with imports and domestic production.

The Ukrainian market of refined coconut and palm oils features the following peculiarities:

– steady growth in exports and an increasing market size in the past five years (volatility was observed in 2020) due to strong demand from the food industry. To a substantial degree, the 2020 drop in deliveries resulted from weakening demand from the food industry in the period of COVID-related quarantine measures;

– available up-to-date production facilities for handling and processing crude palm and coconut oils. The port of Yuzhny (Pivdenny) hosts a facility for handling tropical oils. The main processor of crude tropical oils is the company Delta Wilmar Ukraine.

– dependence of the Ukrainian market of coconut and palm oils on the situation in the Southeast Asian countries which are the main suppliers;

– annual deliveries of coconut oil to Ukraine in 2018-2020 were relatively stable. Mostly crude coconut oil was supplied in 2018, while 2019 imports included mostly refined oil. The supply pattern leveled off in 2020. The supply pattern fluctuation is caused by demand from domestic processors and consumers;

– the biggest suppliers of refined coconut oil are the Southeastern Asian countries, as well as the Netherlands, where Cargill’s plants for processing tropical oils are located.

Overall food production in Ukraine, particularly in its confectionery industry, stays at a stable level and shows an upward trend. To a significant degree, this is accounted for by small businesses and the HoReCA sector, which are forecast to further develop and correspondingly influence the segment of refined palm and coconut oils.

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Tags: Ukraine, vegoil, tropical oil market