Ukraine – China: will there be a new end market for sunmeal?

04.10.2017

Last week, the Agriculture Ministry and the AQSIQ (General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China) signed protocols of sanitary and phytosanitary requirements with regard to sunflower meal and beet cake exports from Ukraine to China. This news did not go unnoticed: part of market players met it with optimism, while others expressed some doubt.

Ukraine already has experience of trading with China in other segments of the oilseed market, and it is very successful in some of them. The largest is the market of sunoil: roughly 584 KMT of this product (10% of its total exports) was shipped from Ukraine to China in the 2016/17 season. In addition, China is a major buyer of soybeans, absorbing some 30% of Ukrainian exports. At the same time, this country’s position among importers of rape oil and soybeans is not so significant.

Ukraine has got first-hand knowledge of how rapidly trading relations with China can develop: over less than a decade, Ukrainian sunoil supplies to this market expanded from minimal trial parcels in MY 2008/09 to almost 0.6 MMT in MY 2016/17.

When discussing the new 2017/18 season, one should keep in mind that current forecasts for Chinese oilseed complex imports are against meals, reports UkrAgroConsult. Purchases of oilseeds themselves are expected to rise. This concerns soybeans and rapeseed, which are more traditional and popular in China, whereas sunseed imports will remain at their low level.

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

 

UkrAgroConsult

Readers choice: TOP-5 articles of the month by UkrAgroConsult