Sunflower oil remains the flagship product of Ukraine’s vegetable oil industry, securing the country’s position as one of the world’s leading exporters. It holds a central place in Ukraine’s export portfolio thanks to its high quality and consistently strong demand across international markets, particularly in Europe, Asia, and Africa.
The production of vegetable oils in Ukraine is closely tied to sunflower yields, as sunflowers remain the country’s key agricultural crop. Despite the challenges brought by the war, farmers and processing companies continue to invest in modernising their operations. This includes the adoption of advanced cold-pressing and refining technologies to meet international quality standards, especially in the organic segment.
Beyond sunflower oil, demand for soybean and flaxseed oils is increasing, with these products gradually establishing their own niches in the food industry, cosmetics manufacturing, and pharmaceuticals.
Last year, BDO in Ukraine conducted an analysis of the oil and oilseed market, examining the current state and forecast trends. We will continue to focus on new global trends and prospects for the industry.
Current trends in the oil market
In 2025, Ukraine’s vegetable oil exports decreased sharply, falling by 46% compared with the previous period. This decline is driven by several factors, including intensifying global competition, ongoing logistical challenges, and shifts in demand structure. Sunflower oil continues to dominate the market, accounting for roughly 83% of total output, while soybean and rapeseed oils represent smaller shares yet demonstrate steady, sustainable growth.
Demand for Ukrainian products remains strong, particularly in European and Middle Eastern markets, with Romania, Turkey, and Spain among the top importers. In recent years, dozens of new oil-extraction plants have been built across Ukraine, while many existing facilities have undergone substantial modernisation. The country now produces more than 13 million tonnes of sunflowers annually.
Despite recent achievements, Ukrainian oil mills continue to face several significant challenges. Chief among them are obstructed export routes caused by ongoing port blockades, high energy consumption that drives up production costs, and volatility in oil and seed prices, which directly impacts profitability.
Sown areas for oilseed crops: in Ukraine and worldwide
In 2025, global sown areas for oilseed crops are expected to continue expanding, having reached 100.4 million hectares compared with 99.7 million hectares in 2024. The European market is also demonstrating positive momentum — 32 million hectares in 2025, up from 31.6 million in the previous period. In contrast, the situation in Ukraine remains stable, with 7.1 million hectares recorded in both 2024 and 2025. Despite the challenges of war and ongoing logistical constraints, Ukrainian farmers are successfully maintaining cultivated areas, driven by strong external demand and the high profitability of these crops.
Yield indicators
Ukraine’s oilseed yields consistently outperform the global average and continue to show positive upward dynamics. In 2024, the average yield reached 2.5 tonnes per hectare, and in 2025 it is expected to rise to 2.6 tonnes. This level exceeds the global average of 1.8 tonnes per hectare, as well as the European Union average of 2.2 tonnes per hectare. Maintaining high yield performance strengthens the competitiveness of Ukrainian producers in the global market, even amid climate risks and ongoing economic challenges.
Price Indicators: Ukraine and the World
In 2025, Ukrainian sunflower oil remains competitively priced, approaching global averages. The average production cost in Ukraine stands at USD 1,013 per tonne, compared with the global average of USD 1,160. This gradual alignment of Ukrainian prices with international levels reflects the country’s growing integration into the global agro-industrial market and increasing demand for Ukrainian oil from international partners.
For detailed information on production volumes, export performance, and comprehensive market analysis, please refer to the full report, available for download.
Conclusion
The Ukrainian oilseed market continues to hold a strong position on the global stage, supported by high yields and steady demand, despite military risks and logistical challenges. The future growth of the industry depends on the modernisation and rehabilitation of processing infrastructure, advancements in breeding and seed production, digitalisation and adoption of precision farming technologies, as well as diversification of export markets and expansion of deep-processing capabilities.
Experts of BDO in Ukraine bring extensive experience working with companies in the agricultural sector, offering deep industry knowledge and regularly conducting analytical research. If your business operates in agriculture and you are looking for in-depth analytics, market research, new growth opportunities, or ways to enhance efficiency, our experts are here to help. We provide data-driven insights to support your strategic decision-making.* This publication provides general information and does not constitute professional advice or services. Before making any decisions or taking actions that may impact your finances or business, please consult with a qualified professional advisor. For more detailed guidance and support, please contact BDO in Ukraine.
