Ukraine's Rapeseed Processing to Decline by Up to 23% in 2024/25 MY, Says APK-Inform Agency

Mumbai, 22 May (Commoditiescontrol): In its latest forecast, APK-Inform Agency predicts a significant decline in Ukraine's rapeseed processing for the 2024/25 marketing year (MY). The country is expected to process between 750,000 to 800,000 tonnes of rapeseed, marking a 20-23% drop compared to the 2023/24 MY.

The primary reasons for this anticipated decrease are a lower harvest of rapeseed in 2024 and heightened competition between domestic processing plants and exporters. European companies are showing robust demand for Ukrainian oilseed, intensifying the competition.

Additionally, the expected deficit of sunflower seeds this summer positions rapeseed as a viable alternative. Previous practices have shown rapeseed to be a good substitute, further driving demand.

Interestingly, the rapeseed crushing season in Ukraine may commence earlier than usual. Factors contributing to this early start include the earlier flowering and maturation of winter crops, coupled with the anticipated early onset of harvesting. While this could lead to a significant increase in domestic rapeseed processing during the peak season, it is unlikely to match the record-breaking figures of the current marketing year due to the intensified competition and reduced supply.

It is noteworthy that during the first ten months of the 2023/24 MY, Ukraine processed approximately 950,000 tonnes of rapeseed, setting a new industry record. This high level of processing highlights the country's capacity and the strong demand for its oilseed products.

Despite the challenges forecasted for the upcoming season, Ukraine's rapeseed industry remains a crucial component of its agricultural sector. The country's ability to adapt to changing conditions and market demands will be vital in navigating the expected downturn in processing volumes.

As the 2024/25 MY approaches, industry stakeholders will closely monitor harvest yields, market conditions, and international demand to adjust their strategies accordingly.

By Commoditiescontrol Bureau: 09820130172)