Ukraine is changing its priorities for vegetable oil exports: the railways remain a major problem
The Ukrainian government’s decision to prioritise vegetable oil exports could help the country’s producers reduce logistics costs and retain access to foreign markets. However, market participants warn that these measures alone will not be enough to resolve the problems facing rail transport. One of the biggest obstacles remains the shortage of locomotives, which limits the ability to deliver produce to buyers on time.
This was reported on 23 October by “Latifundist”, citing Serhiy Repetskyi, a partner at “Sunstone Brokers”, and Anton Zemerdeyev, head of the
According to them, the shift in export priorities could reduce certain transport costs and help Ukraine maintain its position in the global vegetable oil market. However, limited rail capacity means that disruptions to the supply chain may persist.
Ukraine is a major supplier of sunflower seeds and their processed products, so changes in its export conditions are also relevant to the European oilseed market.
For Lithuanian farmers growing rapeseed, this news is significant in terms of competition within the vegetable oil sector. Ukraine’s export capacity may influence demand for raw materials, processors’ purchasing decisions and regional price trends.