Sunflower oil production in the Russian Federation this season may increase by 16-17%

Russian sunflower oil production is expected to see a significant increase of 16-17% in the upcoming season, reaching between 7.75-7.8 million tons according to ACRA experts. This growth is attributed to high sunflower harvest yields and increased processing capacity. However, a potential decrease in sunflower harvest by 6-8% for the next season due to adverse weather conditions could impact export volumes. Currently, sunflower oil exports make up a third of the production, with the rest sold domestically. In contrast, two-thirds of the sunflower meal produced is consumed domestically, with higher demand driving price increases and leading to an increase in export duty rates.

Sunflower oil production in the Russian Federation this season (September 2023 - August 2024) may increase by 16-17%, to 7.75-7.8 million tons, ACRA experts predict. This estimate is based on the industry's recent growth rate. “The production of sunflower oil has been growing over recent years, which was greatly facilitated by record sunflower harvests in 2022-2023, as well as an increase in production capacity for processing oilseeds,” Anton Trenin, an expert at the ACRA corporate ratings group, told Interfax. According to him, in the period from September 2023 to June 2024 (10 months), the production of sunflower oil, according to Rosstat, amounted to 6.7 million tons. “The conservative forecast for the current season is 7.5 million tons. If high growth rates continue in July-August (optimistic forecast), production could approach 8 million tons. Thus, the growth will be 20%. The most realistic, or basic, indicator is 7.75-7.8 million tons,” the expert said. At the same time, ...