In April, export prices for Ukrainian sunflower oil gradually increased, but not as much as for competing vegetable oils.
According to APK-Inform, the sunflower processing margin in Ukraine has recently decreased significantly due to rising raw material prices. However, the increased competitiveness of sunflower oil on the world market is improving export prospects for Ukrainian processors.
Importers are actively switching from expensive palm oil to cheaper sunflower oil, especially against the backdrop of the increasing use of vegetable oils in biodiesel production.
However, increasing global demand not only improves export prospects for Ukraine, but also intensifies competition with other oil producers, in particular from the Russian Federation and Argentina.
Argentina previously exported sunflower oil for a limited time, but this year, against the backdrop of a record harvest, deliveries will last much longer and may fall during the traditional off-season for Black Sea oil, which will limit seasonal price increases.
In January-March 2026, Ukraine, Argentina, Turkey and the Russian Federation collectively exported 3.3 million tons of sunflower oil, which exceeded the corresponding figure for 2025 by 22%. In March, oil exports from these countries reached a multi-month maximum of 1.29 million tons.
Thus, in March, Argentina increased its sunflower oil exports by 64% compared to February to an 8-month high of 208 thousand tons, of which 70% was purchased by India. Sunflower oil exports from the Russian Federation in March increased by 16% to an annual high of 530-550 thousand tons, most of which were purchased by India and Turkey. Turkey increased its exports in March to a 9-month high of 105 thousand tons, which were delivered to African and Middle Eastern countries.
Despite strong competition in the market, Ukraine increased its sunflower oil exports in March compared to February by 18% to 427 thousand tons, and in April - to the highest level since June 2025 of 442 thousand tons, which were delivered mainly to the EU and Middle Eastern countries.
The Kenyan government is stepping up efforts to promote oilseed cultivation, including sunflower and soybean, as part of a broader strategy to reduce reliance on imported edible oils. The initiative also aims to boost agricultural productivity and encourage youth participation in farming.
The country consumes about 600,000 tonnes of edible oils annually, with more than 90–95% of this demand met through imports. According to government estimates, spending on food imports, including oils, wheat, and rice, exceeded KSh 500 billion in 2022 alone.
Speaking at the opening of the Kilimo Biashara Expo 2026 in Thika, Agriculture Cabinet Secretary Mutahi Kagwe said the government is focusing on integrating scientific research into practical farming. He noted that modern technologies and improved crop varieties are expected to increase yields and make agriculture more profitable, especially for young people.
Researchers at KALRO say sunflower and soybean are key crops for reducing edible oil imports. Scientists have already developed improved varieties that are better adapted to local climatic conditions and capable of delivering higher yields under large-scale production.
Kenyan authorities view the expansion of oilseed farming as part of a broader import substitution and food security strategy. Increased domestic production is expected to reduce foreign exchange spending, create jobs, and lower dependence on global markets.
Newsweek’s Jesus Mesa reported that “President Donald Trump defended Chinese purchases of U.S. farmland during a trip to Beijing (last) week, arguing that restricting foreign ownership would hurt American farmers by driving down land values.”
“The remarks, delivered during an interview with Fox News host Sean Hannity, marked a sharp reversal from Trump’s previous hardline stance on Chinese ownership of American agricultural land and immediately intensified concern among farmers and national security hawks already uneasy about Beijing’s growing footprint in U.S. agriculture,” Mesa reported. “‘You want to see farm prices drop, you want to see farmers lose a lot of money? Just take that out of the market,’ Trump said when asked about Chinese nationals purchasing farmland and land near military installations.”
“The comments landed at a difficult moment for rural America. Farmers are already contending with weak commodity prices, high fertilizer costs, trade instability, and uncertainty surrounding agricultural exports to China,” Mesa reported. “For many, Trump’s defense of Chinese investment in farmland added another layer of frustration to an already fragile economic environment.”
“Trump’s Beijing comments also appear to conflict with policies his administration itself promoted over the last year,” Mesa reported. “In July 2025, the USDA announced a ‘National Farm Security Action Plan’ designed to restrict future Chinese farmland purchases and force divestment of existing Chinese-owned agricultural land.… Earlier this year, Trump also signed a national security memorandum targeting investments by foreign adversaries, including China, in sectors tied to agriculture and food production.”
Sunflower prices in Ukraine, after a slight decrease last week, resumed growth on Monday, although sunflower oil prices overall remained almost unchanged.
During the week, prices for sunflower oil delivered to India fell by another $10/t to $1,390-1,400/t CIF Mumbai, which reduced prices for Russian sunflower oil by $10/t to $1,285-1,290/t FOB and demand prices for Ukrainian sunflower oil delivered to Black Sea ports by $5-10/t to $1,315-1,320/t.
Amid increased imports, vegetable oil stocks in India rose to a 15-month high of 2.1 million tonnes (compared to 1.35 million tonnes last year), which is holding back importer activity.
According to processors, the sunflower processing margin in Ukraine is already minus $20-25/t, so factories are stopping or switching to soybean processing. However, low sunflower stocks will keep demand for it high until rapeseed processing begins.
During the week, the demand prices for sunflower (with 50% oil content) in Ukraine increased by 500 UAH/t to 31,500-33,000 UAH/t or $630-660/t excluding VAT.
As of May 18, 3.727 million hectares, or 75% of the planned area, have been sown with sunflower in Ukraine, which is behind last year's pace, but farmers are accelerating sowing in anticipation of heavy rainfall across the country this week.
Oilseed markets are being supported by high oil prices, but analysts are hopeful that Iran and the US will reach a deal that will partially unblock oil exports from the Persian Gulf and lead to lower prices in the near future.
Global agribusiness giant Cargill is investing US$150M in upgrading its sunflower processing site in Saint-Nazaire, France.
The investment would allow the site to shift from lower protein meal to high and super-high protein sunflower meal, creating a new regional source of plant-based protein for the animal feed sector and reducing reliance on imported meal, the company said on 29 April.
As sunflower crops continued to increase in France, and with the region around the site an important supplier, the investment would provide local farmers with an outlet for their seeds and enhance collaboration with cooperatives, the company said.
“This strategic investment strengthens our ability to connect French farmers to growing demand for high-value protein meal,” said Alexis Cazin, president of Cargill’s Agriculture and Trading group in EMEA [Europe, the Middle East and Africa].
“By upgrading our processing capacity in Saint-Nazaire, we’re creating more opportunities for local farmers while helping ensure France remains competitive in rapidly evolving global feed markets.”
The investment also represented a significant step forward in improving the site’s energy resilience, the company added.
By using processed sunflower hulls to generate energy on site via a new biomass boiler, Cargill said it also expected to reduce its natural gas use by more than 100GWh/year and cut CO2 emissions by approximately 20,000 tonnes/year – around 90% of the site’s CO2 emissions.
In addition, excess sunflower hulls would be converted into agricultural biomass pellets and supplied to external customers, including district heating networks.
Construction is scheduled to begin in November, with commissioning planned for March 2029.
Active in France since 1964, Cargill has a network of 14 sites in the country, most of them in western France – in Brittany, Normandy and Pays de la Loire – in line with the company’s focus on local agricultural production, including sunflower, rapeseed, corn, wheat, apple pomace and poultry.
European agriculture is already adapting to a rapidly changing environment shaped by climate pressures, demographic shifts and evolving regulatory frameworks.
A new European Commission study sheds light on how these forces are influencing farming systems across the EU and where adaptation is already taking place.
Based on fifteen case studies across eleven Member States, the analysis explores concretely how these drivers affect farm income, resilience and long-term viability.
Against this backdrop, the study directly contributes to the Vision for Agriculture and Food (2025), which sets out a long-term roadmap towards a more resilient, competitive, fair and future-proof EU agri-food system towards 2040.
It also identifies practical pathways that are emerging across the sector, offering valuable evidence to support future policy development.
The study confirms that climate change is the most significant factor shaping agricultural adaptation across regions and sectors.
Farmers are increasingly facing droughts, water scarcity, heatwaves and more frequent extreme weather events, alongside rising pressure from pests and diseases.
At the same time, the study highlights that adaptation is already underway in many areas, with farmers adopting improved water management, shifting cultivation practices and adjusting crop choices.
These early responses underline both the urgency of the challenge and the capacity of the sector to innovate.
Labour shortages and demographic change are also emerging as key structural challenges, particularly in labour-intensive sectors such as horticulture and dairy.
The ageing farming population and difficulties attracting younger generations are...
Currently, sunflower seed is being processed mainly by plants that secured supply back in March–April. Plants that were not covered with raw material from that period are now either shutting down or switching to processing remaining rapeseed and soybeans. This was reported in an interview with Latifundist.com by Serhii Repetskyi, co-founder and partner of Sunstone Brokers.
“At the current sunflower seed price, there is no processing margin. For many plants, it is actually more profitable to stand idle than to process. When a plant is idle, it still has fixed costs — roughly $9–10 per ton. These include salaries and other fixed expenses,” he said.
According to Repetskyi, under such conditions, operating a plant can result in losses of $20–25 per ton.
“So the simple question is: why generate a loss of $20–25 if you can generate a loss of $9–10 by standing idle? In this situation, shutting down production looks economically more rational for some processors than operating at a loss,” he noted.
There are still small remaining stocks of rapeseed in the country, so processors who do not want to buy sunflower seed at UAH 33,000–34,000/t are switching to rapeseed. In addition, rapeseed oil prices at the Polish border allow processors to operate in the black.
“There is no margin in buying at such prices (sunflower seed, ed. note). Only those plants that have a longer value chain with integrated meat or dairy businesses can afford it,” Repetskyi added.
He also believes that the remaining sunflower seed on the market is mostly held by medium-sized farmers, but they will not hold it for long. The first half of June may become the period of final sales of remaining stocks, ahead of the rapeseed and barley harvest.
India is considering a request by the domestic vegetable oil industry to raise import duties, potentially increasing taxes on another major commodity just after a hike in gold tariffs.
The world’s top edible oil buyer is examining whether higher taxes would help local farmers fetch better prices for their crops, according to a person familiar with the matter. No decision has been taken yet, said the person who asked not to be named as the information is confidential.
The deliberations come as the government steps up efforts to curb foreign-exchange outflows, which have put pressure on the rupee — Asia’s worst-performing currency this year.
Earlier this month, Prime Minister Narendra Modi urged consumers to cut dependence on major imported goods, including vegetable oils, fertilizers, gold and crude oil. India imports about 60% of its edible oil needs.
A food ministry spokesperson didn’t immediately respond to an email seeking comment.
A United Nations gauge of global food-commodity costs climbed last month to the highest level in more than three years as the Middle East conflict disrupts supply chains, driven by higher vegetable oil, meat and cereal prices.
Palm oil, the world’s most-widely used edible oil, has surged around 12% since the war began, as top producers Indonesia and Malaysia ramp up biofuel production to cushion the impact of higher energy costs. However, the South Asian nation’s likely move could weigh on purchases and dampen the rally.
India last year reduced the basic import duty on crude palm, soybean and sunflower oils to 10% from 20% to curb domestic prices and support processors. The government also directed the industry to pass on the benefits of the tax cuts to consumers.