Ukraine's sunflower oil exports drop by half to 300,000 tons as shipping halts

Ukraine's sunflower oil exports have plummeted by half to a mere 300,000 tons per month, according to Stepan Kapshuk, CEO of the Ukroliyaprom Association. This reduction is attributed to a halt in seaborne exports, which have been exacerbated by logistics bottlenecks. In August, sunflower oil shipments peaked at 5,000 to 7,000 tons daily, supplemented by 2,000 to 3,000 tons each of rapeseed and soybean oil.

The total daily output of processed vegetable oil stands at 8,000 tons, which is half of the volume exported before the seaborne export suspension. Kapshuk attributes the decline to delivery delays and a severe shortage of transport and warehouse space, anticipating that logistical issues will be resolved within two to three weeks.

Despite these challenges, Kapshuk remains confident that domestic vegetable oil production could reach 7 million tons by year-end, with only a 300,000 ton requirement for the domestic market, thereby eliminating any risk of domestic shortages or public panic. In the first two weeks of August 2026, Ukraine exported 900,000 tons of agricultural products, falling short of its target capacity by 69%.

Grain exports accounted for the most significant drop, amounting to 522,000 tons, or just 20% of the potential, alongside 163,000 tons of oilseeds, 128,000 tons of vegetable oil, and 86,000 tons of meal. The surge in logistics costs, reaching $50 per ton, has rendered traditional routes unprofitable, prompting exporters to seek alternative shipping methods, with 45% now utilizing the Danube River, rail networks, and another 7% to 8% via road.