March 31, 2016


Ukraine's rapeseed exports sink 25% to nine-year low


Ukraine's rapeseed exports could decline to a nine-year low in the next season, reported.


The development would benefit Australia, another key rapeseed exporter to the EU. In 2016-17, Ukrainian rapeseed exports is expected to fall 25% year-on-year, to a volume of 1.05 million tonnes. The decline would position Ukrainian shipments at their lowest since 2007-08.


Deliveries to the EU will also tumble by 25% to 950,000 tonnes in the next season.


According to the USDA's Kiev bureau, the bloc is still Ukraine's biggest market, acquiring close to 1.3 million tonnes in 2014-15. Ukraine's rapeseed is chiefly used for biofuel production, particularly the EU.


As Ukraine's supplies decrease with the EU's rapeseed output at about 21-21.5 million tonnes - below consumption which averages about 25 million tonnes, the bloc would require alternate sources to meet demand.


However, Canada, a top exporter of rapeseed variant canola, "produces genetically-engineered rapeseed" which does not meet EU regulations.


Concerning the latest export forecast for Ukrainian rapeseed, the USDA said data reflected an expectation of 1.47 million tonnes harvest, a year-on-year drop of 280,000 tonnes which is also a nine-year low. The drop has been attributed to poor weather which affect plantings.


In addition, the USDA bureau commented that rapeseed – also used for producing biodiesel - continues to lose favour among local farmers as its export and local price are strongly connected to decreasing global oil prices.



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