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The Extension of Ukrainian Sunflower Import Ban Causes Temporary Closures of Bulgarian Businesses

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The extension of the ban on Ukrainian sunflower imports has already caused temporary closures of businesses.

There are oil plants that have temporarily closed due to a lack of raw materials, such as the largest sunflower processor in our country in the village of Razdelna, Varna Region.

This was announced by the Association of Producers of Vegetable Oils and Oil Products in Bulgaria at a press conference, on the occasion of the request of our country from the European Commission to extend the ban on the import of Ukrainian sunflower until the end of the year after September 15, announced by the Minister of Agriculture Kiril Vatev, writes “Now”. .

Oil producers accused the state of tolerating one sector at the expense of another and thus distorting the market.

“It is not in the interest of the sunflower producers to withhold their production either, because the price trend since May last year has only been downward. Prices continued to fall even after the ban on the import of Ukrainian sunflower in five Eastern European countries was introduced in April this year “, said Yani Yanev, chairman of the processors’ association.

“We offer them the international price – currently it is BGN 800 per ton delivered to the port of Varna. The producers, however, do not sell at this price, but if they continue to withhold the sunflower, they will lose more,” Yanev said. When asked what price the grain producers are looking for, he answered: “They want us to tell the price, and we are stepping on that of the international markets.”

We remind you that last year the price of sunflower, at which the Bulgarian farmers sold to the processing plants, reached an average of BGN 1,200 per ton, and this caused a strong increase in the price of the oil in the commercial network. Subsequently, with the opening of duty-free imports of Ukrainian sunflower to Europe, the price of sunflower started to fall and continued to fall, even after a ban on imports from Ukraine was introduced in April in five Eastern European countries, including Bulgaria.

The processors indicated that they would prefer to buy all the Bulgarian sunflower, but it is not enough to load their production capacities. Imports of at least 1.5 million tons of raw materials are required, and for them imports from Ukraine are extremely important in order to produce competitive production for export. 80% of the production of the large Bulgarian oil mills is exported, and in recent years Bulgaria has become one of the largest exporters of sunflower oil in the world.

The price of oil for the domestic market will not be affected by these problems between processors and producers, the processors assured. To satisfy the domestic oil market, only 250,000 tons of raw material per year are needed, and this amount is provided by oil producers. Moreover, it has not stopped the work of the small oil mills, which manage to buy smaller quantities of sunflower from the farmers.

If the oil factories temporarily close, it can also be relied on to import oil from Romania, where there are no such problems between producers and processors, Yanev pointed out.

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2023-08-30 18:23:00


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