Russia forces Ukraine out of Turkish sunflower oil market

22.09.2016

As UkrAgroConsult previously reported, in September 2016 Turkey has decided to raise duties on safflower and sunflower oil imports. Import duty on safflower was raised from 4% to 23.4%, while the duty on raw sunflower oil imports increased from 12% to 36%, on processed - from 50% to 67.5% per 1 MT. Such measures are taken in order to protect local oilseeds producers and crushers.

The reason for these changes is understandable and justified, if taking into account forecasts of record sunflower production in the Black Sea region, including Russia and Ukraine that are the major sunflower oil suppliers to Turkey. Combined share of these countries in Turkey's imports exceeds 90%.

Market operators expect that record crops in Ukraine and Russia will inevitably lead to price reduction not only for sunflower but also for its derived products. In this regard, Turkish processors will be in a very unfavorable economic situation, when the cost of their products will be higher than importers’ prices for sunflower oil.

Full version of the article is available to subscribers for weekly market report “Black Sea Vegoils & CIS” and “Online market review” by UkrAgroConsult.

 

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