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Sunflower Cake: Export Potential of Ukraine in 2024
Sunflower cake remains a key product of Ukraine’s agro-industrial complex and a significant source of foreign currency for the country’s budget. In 2024, the situation surrounding this product is influenced by several key factors, including geopolitical instability, the development of logistical infrastructure, and growing demand in international markets. This article offers a detailed overview of the current state of the sunflower cake market, its role in Ukraine’s economy, and future development prospects.
Unique Properties of Sunflower Cake
Sunflower cake is a high-protein feed supplement produced during the processing of sunflower seeds into oil. The main advantages of this product include:
- High protein content (30-45%), making it valuable in animal feed production.
- Presence of amino acids, fiber, phosphorus, and other essential nutrients.
- Ecological benefits and relatively low cost compared to alternatives like soybean cake.
Sunflower cake is widely used in poultry farming, livestock, and aquaculture. In countries with developed agro-industries, its use helps reduce feed costs without compromising quality.
Ukraine’s Role in the Global Sunflower Cake Market
Ukraine is the largest producer and exporter of sunflower oil, which automatically positions it as a leader in sunflower cake production. Ukrainian enterprises produce approximately 6-7 million tons of sunflower cake annually, with 80% of this volume being exported.
Key production regions include Dnipropetrovsk, Zaporizhzhia, Mykolaiv, Kharkiv, and Kirovohrad, where modern oil extraction plants are located.
The importance of sunflower cake for Ukraine’s economy cannot be overstated. In 2023, its export brought over $2.5 billion to the country, and this figure is projected to increase by 5-7% in 2024.
Major Importing Countries of Ukrainian Sunflower Cake
Ukraine exports sunflower cake to over 30 countries worldwide. The largest importers are China, European Union countries, Turkey, and India.
Sunflower Cake Export Statistics for 2023-2024
| Country | Share in Exports (%) | Main Uses | Import Volume in 2023 (Million Tons) | Forecast for 2024 (Million Tons) |
|---|---|---|---|---|
| China | 35% | Poultry and pig feed | 1.8 | 2.0 |
| EU (total) | 30% | Poultry, livestock | 1.5 | 1.6 |
| Turkey | 15% | Poultry, aquaculture | 0.8 | 0.9 |
| India | 10% | Cattle feed | 0.5 | 0.6 |
| Other countries | 10% | Livestock | 0.4 | 0.5 |
China is the leader among importers due to the constant growth in demand for feed products in intensive livestock farming. The EU purchases sunflower cake for its ecological advantages over soy, typically imported from South America. Turkey uses sunflower cake extensively in its developed poultry sector.
Export Logistics
The logistics of sunflower cake export from Ukraine in 2024 remain complex but vital for trade. Traditionally, seaports played the main role in exports, but the war has significantly changed the routes.
Main Export Routes:
- Seaports: Odessa, Chornomorsk, and Pivdennyi remain key hubs, exporting up to 60% of the cake.
- Danube Ports: (Izmail, Reni) facilitate growing export volumes to Europe, especially during the blockade of main ports.
- Rail Transport: Delivers sunflower cake to EU countries such as Poland, Romania, and Hungary. Investments in border rail infrastructure modernization are planned for 2024.
- Road Transport: Primarily used for local deliveries and smaller shipments to neighboring countries.
Sunflower Cake Prices in 2024
The pricing policy in 2024 remains stable, with a 5-10% increase compared to the previous year due to higher logistics costs and consistently high demand.
Average Prices in 2024 (End of Q1):
| Market | Average Price per Ton ($) | Delivery Terms |
|---|---|---|
| China | 260-280 | CIF |
| EU | 300-320 | FOB |
| Turkey | 270-290 | CIF |
| India | 250-270 | FOB |
| Africa & Middle East | 240-260 | FOB/CIF |
Key Market Players
Ukraine has a well-developed sunflower processing infrastructure that enables large companies to export high-quality products. Leading players include:
- Kernel
- MHP
- Cargill
- Bunge
- Astarta
These companies invest in production and logistics modernization, helping to expand export geography.
Future Prospects
Ukraine has all the conditions to further strengthen its position in the global sunflower cake market:
- Market Diversification: Expanding into new markets in Africa, Southeast Asia, and Latin America will reduce reliance on traditional buyers.
- Improved Logistics: Investments in railway crossings and Danube ports will increase export volumes even in challenging conditions.
- Innovations in Production: The development of new processing technologies will enhance cake quality and competitiveness on global markets.
Ukraine remains one of the key suppliers of sunflower cake, ensuring stable foreign currency inflows and strengthening its role in the global economy. In 2024, this sector will continue to show steady growth despite the challenges.