The sunflower oil market of Ukraine and its development

UDC 633.1:338.43

V. Klochan, doctor of economic sciences, professor
I. Bezpyata, associate professor, PhD
N. Zingaieva, assistant
Mykolayiv National Agrarian University

In recent years the relationships between Ukrainian and world sunflower oil market is getting tighter due to the deepening of the international division of labor and Ukraine’s entry to the world leading oil producers and exporters. National demand on sunflower oil is only 10-15%, the remaining 85-90% is exported.
The problems of the agricultural sector, the current trend of price conjuncture of world food resources, lack of government attention to the problems of the sector create a foundation for crisis in the provision of food, including sunflower oil.
Despite the increase of refining capacity and oil production, including sunflower, there is a decrease of oil consumption fund: in Ukraine, the consumption has decreased from 13,7 kg in 2011 to 12,3 kg per person per year in 2015. It should be noted that in 2015 oil consumption does not meet standards of human nutrition, which is 13 kg per person per year. Reducing consumption per capita was related to the reduction of oil consumption of the general fund.
This trend demonstrates the economic crisis in the country where due to significant increase of prices for sunflower oil, people started limiting themselves in its consumption, which indicates the unbalanced nutrition of Ukrainians.
Despite all the political and economic negative, according to experts, the Ukrainian agricultural sector annually increases production of crops and hence, increases exports. To get started developing, we need to seek new markets. For example, Chinese market has already bought 14% of our sunflower oil. Increasing our market presence through the consolidation of enterprises enables national producers to dictate their conditions on the raw materials and finished products markets, accordingly adjust profitability and reduce the impact of competitors.
Another way of survival for enterprises under the oil-fat complex on the national market is to create its own resource base to load the capacity of processing of oilseeds. Also further integration of Ukrainian oil market into the world’s one confronts manufacturers of topical issues of improvement of the quality and competitiveness of oil and fat products. As Ukrainian enterprises, which are the world largest producers and exporters of oil and fat products must be able to compete not only with quality products, but also for the price. This involves continuous improvement and optimization of production processes to improve efficiency and reduce production cost.

Key words: sunflower oil, oil-processing industry, exports, consumption fund balance, global market.

The sunflower oil market of Ukraine and its development.

Issue №1 (93), 2017