Sunflower oil supplies will be tight this year and likely to contribute to higher prices
We have learned the hard way the Russian invasion is having major impacts on the global food supply, given Ukraine is one of the top wheat producers in the world.
USDA’s Economic Research Service is shedding new light on other areas of impact.
Ukraine is also a major producer and exporter of sunflower oil. Last marketing year, before the invasion, Ukraine accounted for 31 percent of all sunflower oil output worldwide, and three percent of all major vegetable oils produced globally. Because there is so much uncertainty surrounding exports in Ukraine, there is additional demand for palm, soybeans, and canola oils.
ERS says supplies will be tight this marketing year, contributing to even higher vegetable oil prices.