Report Highlights:

Oilseeds and products are expected to be relatively more profitable than grains for Ukraine in 2014. Farmers have expanded their planting, based on this expectation, though several economic factors will temper yields. Still, this sector will provide positive support for agricultural sector development with the foreign exchange earnings it will bring in.

Executive Summary: 

Overall oilseed area in Ukraine in Marketing Year (MY) 2014/15 is projected to increase due to expansion of soybean plantings (by 17 percent or up to 1.6 Million Hectares (mln ha) compared to 1.36 mln ha in MY 2013/14). This crop has shown good results in terms of production and profitability last year and is once again attracting Ukrainian producers on the expectation of strong world market prices. 

According to the official data, soybeans and sunflowerseed (SF) were the two major crops in Ukraine in MY 2013/14 that maintained relatively good profitability while producers reported struggling to breakeven on other agricultural crops due to significant – on average 20-30 percent for oilseeds and oilseed products – overall drop in agricultural commodity prices. 

It is anticipated that agricultural crop production in 2014 would be impacted by the following factors: 

- escalating economic instability since the end of 2013 in Ukraine 

- local currency devaluation to major world currencies (by over 40 percent between December 2013 and April 2014) 

- political hardship and instability in the country in the recent months 

- increase in costs of agricultural chemicals a significant share of which is traditionally imported 

- increase in fuel costs 

- significantly reduced agricultural producer profit margins for the previous harvest 

- financial tools becoming costlier and less available to locally based agricultural producers 

The factors mentioned above are stimulating Ukrainian agrarians to reduce the costs of production for harvest 2014 and onward. Producers are becoming smarter in the way they conduct business in the country. Lower fertilizer and chemical use may be expected. Some producers report choosing non-brand products that are cheaper. Also, since seed costs constitute for some crops over 30 percent of input expenses, agricultural producers would be choosing lower cost and consequently lower quality seeds. Thus, average crop yields are not expected to reach record high levels. However, the export orientation of agricultural commodity production in Ukraine, especially in the oilseed and grain sectors, is expected to allow local producers to benefit from the inflow of foreign currency as a result of sales to the world markets. 

Overall oilseed crush capacity in Ukraine expanded slightly in 2013 and reached 13.3 MMT mainly due to updates made at the existing crushing plants that allowed larger quantities and a variety of oilseeds crushed at a greater speed, improved output quality, etc. In addition, a few new oilseed crushing and transshipment facilities are planned to be put into operation in the near term in Ukraine. 

Oilseed meal consumption has been gradually increasing in Ukraine in the last five years due to strong demand from still expanding industrial poultry and animal production (slowly growing) in the country. Growing world market demand for oilseed meal has also been stimulating exports from Ukraine and is expected to continue supporting sales in the future. 

Strong demand for Ukrainian oilseeds and products is anticipated to continue coming from the EU, especially for rapeseed and soybean meal. In addition, buyers of oilseeds and products from the Far East destinations are becoming noticeably interested in Ukrainian agricultural commodities. Continued growth of sunflower oil sales to China and other countries in the region is expected yet in the current season and in MY 2014/15. 

Finally, no significant policy changes in the agricultural sector have occurred in Ukraine in 2013 and during the first quarter of 2014. However, economic and political situation instability in the country observed in the recent months may lead to some policy adjustments before the year end. No effects of such changes were factored into PSD balances discussed in this report but rather may be reported in additional publications later in the season when any particular policy changes are developed and signed into law. 

Oilseed, Sunflowerseed

Production: 

Production of sunflowerseed in Ukraine in MY 2014/15 is projected to decrease due to lower yield expectations. A drop in production by almost 14 percent to about 10 MMT is projected for MY 2014/15 compared to 11.6 MMT (FAS-Kyiv estimate) harvested in fall 2013. 

Sunflower planted area in MY 2014/15 is expected to remain similar to that of the previous season. FAS-Kyiv projects sunseed yields in the new season to stay above the five year average but below the last year’s officially reported record country average yield of 21.7 MT/ha, thus an anticipated drop in overall production next season. 

Seed imports during September 2013 – January 2014 for spring 2014 planting remained at relatively good level but below that of the previous season. Sunflower seeds from the U.S. usually accounted for one third of imported planting material in Ukraine. This season so far (exports from September 2013 to January 2014) US is leading with more than 50 percent share, while the shares of the other major sunflowerseed supplies to Ukraine – Turkey and France – has decreased for the same period. 

Considering the overall economic situation in the country prior to and at the time of the spring planting this year, producers are not expected to maximize sunflower yields. They are rather expected to reduce costs by either purchasing cheaper inputs or making fewer chemical applications and in general modifying production technology to cut down production expenses.

During the past few seasons FAS-Kyiv has been adjusting sunflower production quantities reported annually by the State Statistics Committee of Ukraine to produce estimates that in USDA’s view better reflect the true situation in the industry in Ukraine. Historic sunflower oil exports from the country were one of the most significant pieces of data used to support these production estimate calculations. Other data like domestic sunflower oil consumption (that has been relatively steady year over year) as well as industry data mining and other sources were used to arrive at the most reasonable sunflower seed, oil and meal production estimates. It is important to note that at the time of this report writing the current and the upcoming season projects are made along with recalculations of estimates for the past seasons. 

Consumption: 

Almost all sunflowerseed produced in Ukraine is crushed domestically, as has been the case over the last decade. A small share of sunseed is consumed raw for food and by confectionary industry. Crush and consumption statistics for the last few seasons were revised by FAS-Kyiv to correspond better to officially reported sunflower oil production and exports for these seasons and to reflect better the industry trends. 

Sunflower crush at the start of the MY 2013/14 was at a slower pace compared to the past years due to significant commodity price drop. Thought the whole current season there has been a tendency for producers to hold the stocks on the hopes that the prices may rebound later on. Large ending stocks of up to one MMT may be expected to occur if no change in the sunflower seed and oil prices occur. 

For MY 2014/15 local consumption of sunflower is expected to follow the usual trend unless Ukraine changes its sunseed export tariffs in view of the Free Trade Agreement with the EU.

Trade: 

Over last few season sunflowerseed export quantities in Ukraine have been going down due to attractiveness of selling to the domestic market (mostly for crushing). While Ukraine exported over four hundred thousand tons of sunseed in MY 2010/11, exports in MY 2012/13 totaled a little over one hundred thousand tons. The trend is expected to continue and in MY 2014/15 Ukraine is expected to export only about 100,000 MT of sunflower seed which is less than one percent of overall production. 

In the past, Turkey used to be the largest buyer of sunflowerseed (over half of all sunseed exported from Ukraine) that it purchased to crush in their country. However, over the first four months of MY 2013/14 while exports of sunseed from Ukraine were running very low, Turkey’s share has declined significantly and other buyers like Germany, Azerbaijan, and Poland ended up at the top of the list. As indicated by industry, sunflower seed and oil sold by Russia in the current season has been competing against Ukrainian product with prices $10-20 below those offered by Ukraine. Competition from Russian is expected to remain in the new season as well.

Oilseed, Soybean

Production: 

Soybean planted area in Ukraine in MY 2014/15 is expected to increase by about 17 percent or up to 1.6mln ha compared to 1.366 mln ha planted in MY 2013/14. Production is projected to reach roughly 3.2 MMT with expected average yields at the level of the previous season. The following factors play in favor of soybean production expansion in Ukraine: 

- Good returns on soybean production compared to other agricultural crops produced in Ukraine 

- Attractive world market outlook for soybeans and products for the upcoming season 

- Strong domestic demand from poultry and animal production sectors 

- Relative ease of soybean exports from the country 

- Favorable climate conditions for production of soybeans in Ukraine (mainly north-central regions) 

Soybean profit margins for agricultural producers in Ukraine in the last five years have been positive, in some cases surpassing that of rapeseed and grains. In MY 2013/14, on average in the country, soybeans are said to have earned the top dollar beating even sunflower. This makes the crop attractive to local producers while production costs and technology are not the most expensive or complex compared to other crops (e.g. sunflower).

Soybean planting area in Ukraine has been expanding gradually over the last decade – from a mere 65,000 ha in 2000 to 1.6 mln ha (projected by FAS Kyiv) in 2014. This growth is mainly stimulated by export attractiveness of this oilseed. Also, domestic soybean production is expected to continue responding to the domestic demand from growing industrial poultry and animal production in the country. 

Production of Genetically Engineered (GE) crops in Ukraine is still not allowed since none have passed the official registration and approval process so far. However, industry rumors still indicate that Roundup Ready soybeans continue to be produced in the country. The share of this variety in the past was rumored to reach up 80 percent of the total soybean production in Ukraine. Though recently, unofficial reports indicate that the share has started declining. It is said that locally bred regular (non-GE) soybean varieties are surpassing GE soybeans in terms of yields due to adoption to local conditions, and are showing better profitability ratings. In addition, some traders in Ukraine are willing to pay premiums for GE-free soybean lots. 

Consumption: 

Soybean consumption in MY 2014/15 is expected to increase by about three percent year-on-year. A major share of soybeans produced in Ukraine – roughly 20 percent – are used up by domestic crushing industry. Part of this quantity ends up as soybean oil and meal for exports and the rest is consumed domestically as full-fat or regular soybean meal. 

Trade: 

Over 80 percent of all soybeans produced in Ukraine are exported and in MY 2013/14 exports are expected to reach one MMT, up 24 percent compared to the previous season. In MY 2014/15 exports of soybeans are projected to increase further (on the projected growth in bean production) up to 1.1 MMT, a ten percent increase year-on-year.

Relatively good soybean world market prices in the current marketing year and similar prospects for the coming year supported steady soybean exports from Ukraine in these seasons. Local commodity prices are adjusted to reflect the export price trends but some delay is observed. 

At the end of 2012/13 season local prices were higher than export (FOB) prices. Such trend was observed while local stocks were running tight but demand from the local feed industry was running high due to poultry and animal production expansion in the country. Soybean FOB prices were more or less consistent with the buyer offers. To satisfy local feed demand, Ukraine imported soybean meal in summer 2013. 

The top buyers of Ukrainian soybeans for the last three seasons remained the same and in MY 2012/13 Italy purchased over 0.44 MMT of Ukrainian soybeans (33 percent share), Egypt – 0.24 MMT (18 percent), and Turkey come in the third place at 0.13 MMT (ten percent). With the EU demand being the strongest for Ukrainian soybeans other countries like Spain and Greece followed with significant quantities purchased as well. 

In the recent year a noticeable increase in demand for Ukraine soybeans also was observed to come from Russia, Romania, and Poland. 

Another market of opportunity that has just started opening up for Ukraine is the Far East. Between September and December 2013, out of the total 704,600 MT of soybeans exported from Ukraine, Vietnam purchased 32.2 thousand tons, Thailand bought 8,200 MT and Malaysia – 5,400 MT while the usual byers – Italy, Russia, Turkey, and Egypt remained at the top of the list. 

Imports of soybeans are minimal and constitute usually of the seeds for planting.

Oilseed, Rapeseed

Production: 

Production of rapeseed in MY 2014/15 in Ukraine is expected to be at about two MMT – a drop of about 15 percent compared to 2.35 MMT produced in MY 2013/15 – a relatively large crop anyway. Overall good weather conditions for rapeseed in winter 2014 and 2013 resulted in very low winter rape loses (usually over 80 percent of all rapeseed sown in Ukraine is winter rape) of about six to ten percent. 

Even though planted area under rapeseed for the MY 2014/15 crop is projected to remain similar to that of the previous season. Lower production than in the past is forecast due to a projected decrease in yields due to the expected lower input use and quality. 

Consumption: 

Domestic rapeseed crush (though still insignificant) is the only force competing with exports. Overall oilseed crush capacity in Ukraine remains high and attractive rapeseed oil export prices stimulated the industry to benefit from producing and exporting the value-added product. Rapeseed crush in MY 2013/14 is projected to reach up to 140,000 MT, up by over 200 percent on year. It is then expected to increase again by about 43 percent up to 200,000 MT in MY 2014/15. Ending stocks for rapeseed are kept at minimum in Ukraine because of little demand for domestic use of this commodity. 

Trade: 

A large rapeseed crop in MY 2013/14 in Ukraine and an expectation of a decline in the world market prices stimulated high exports pace at the start of the season. Just over two MMT of rapeseed or 90 percent of the project marketing year total were exported between July and December 2013 with 80 percent of sales happening in the first four month of the season. 

A sharp decline in rapeseed prices observed in Ukraine at the start of MY 2013/14 rebound somewhat by November-December but stayed well below the preceding season’s prices.

The European Union remains the largest buyer of Ukrainian rapeseed and is expected to remain at the top in the new season. However, just as with the other Ukrainian oilseeds and oilseed products Asian buyers are starting to show interest for rapeseed. According to official data, between July and December 2013, Pakistan purchased 224,200 MT of rapeseeds from Ukrainian – a little over ten percent of the overall rapeseed exports for that period of time, and Vietnam bought 93,600 MT (4.5 percent share). 

Reportedly, China is interested in purchasing large quantities of Ukrainian rapeseed. Phytosanitary terms of trade for this commodity are said to be negotiated between the two governments. 

Another major change in sales of Ukrainian rapeseed for the same period of the current MY was observed in exports to Poland, a share of which has dropped to roughly foru percent of exports for the first fix months of the season resulting in almost 60 percent decline in quantity purchased by this country. United Arab Emirates, on the other hand, continue expanding purchases of Ukrainian rapeseed. Sales to this country within the five months of the season reached 133,600 MT (6.4 percent share) – up by over 200 percent.

Oils

Production: 

Production of sunflower oil has been gradually increasing in Ukraine over the last decade while production of sunflowerseed has grown from almost 3.5 MMT in 2000 to over 10 MMT in 2013. Ukraine has been the major world market supplier of sunflower oil and is set to remain in this position for the coming seasons. By the end of the current marketing year, sunflower oil production in the country is expected to reach 4.25 MMT, up about 14 percent on year. And for the coming MY 2014/15 sunflower oil production in Ukraine is forecast to grow by another 3 percent to reach over 4.3 MMT.

Sunflower crush in Ukraine has been driven by sunflower oil exports. This commodity has been providing Ukrainian agrarians with unbeatable profits for many years now. However, the record crop of MY 2013/14 resulted in sunflower seed (SF) and oil prices dropping by over 25 percent compared to the average price levels of the previous season. As a consequence, Ukrainian producers were holding back to some extent on sunflowerseed crush waiting for the prices to regain at least some of its strength. Sunflower seed and oil producers in Ukraine none-the-less were still making relatively good profits off these products compared to other agricultural commodities where producers have been struggling to breakeven in the current season.

Notably, adverse weather conditions of summer and fall 2013 resulted in lower quality sunseed at harvest. As a result, average oil extraction rate this season was several percent lower than usual. 

Also, sunflower oil production estimates were reviewed and changed for several preceding seasons. Undeclared sales of sunflowerseed are said to exist in Ukraine, so underreporting of this oilseed and oil production is an issue every season. USDA relies mainly on official commodity exports data and on estimated domestic sunflower oil consumption to revise its sunflower seed, oil, and meal production estimates. 

Soybean oil production has been on the rise in Ukraine with growing overall oilseed production. Major oilseed crushers developed the capacity to process various oilseeds in the same facilities adding to their ability to serve the changing market needs better. Soybean crush is mainly driven by domestic poultry and animal production with oil being a side-product most of which is exported. A large share of soybeans crushed in Ukraine is made into full-fat soybean meal. Thus a share of oil produced is not that large. 

Ukrainians are not used to consuming soybean or rapeseed oils for food. Thus, these commodities are mostly destined for exports as value-added products while soybean and rapeseed meal is fed to animals. 

Rapeseed oil has become a new product of interest for Ukrainian crushers in the last season mainly due to the demand from the EU. Many large crushers in Ukraine are now able to process rapeseeds in their facilities and thus tried out the product for its value-added benefits. Rapeseed oil production in MY 2013/14 is expected to reach almost 60,000 tons, with major share of that exported.

Consumption: 

Sunflower oil consumption in Ukraine has been quite constant over the years. The overall trend starting in 2009 is downward. The slowly declining population is the main reason behind the observed trend. In addition, orientation towards healthier and simpler product diets long with lower average incomes of the population compared to the pre-economic crisis times (before 2009) are the other significant factors at play. 

Soybean and rapeseed oils have never been popular food products for Ukrainians but sunflower oil traditionally is a staple food used in salads as well as for baking and frying purposes. There is some insignificant increase in soybean and rapeseed oil use observed in the last few years in the country mainly coming from food processing and other industrial uses. This trend can be explained by the fact that these oils are now produced in Ukraine in larger quantities and become available for domestic consumption. 

Trade: 

During the first four months of the current season, from September to December 2013, Ukraine exported about 1.23 MMT of sunflower oil, about three percent below the quantity exported for the same period a season earlier. Sunflowerseed oil trade in My 2013/14 has not been as active as some expected, mainly due to the drastic drop in sunoil prices at the start of the season. 

Overall sunflower oil exports from Ukraine in MY 2013/14 are projected to reach 3.7 MMT, up 14 percent on year. However, projected large ending stock of sunflower seed in the current season may be easily turned into oil if commodity price increase and becomes more attractive than it is at the time of this report writing. Even though this is an unlikely scenario the chance still exists and is worth noting. 

MY 2014/15 exports are forecast to remain high, at about 3.8 MMT, up by about three percent on year, on continuously strong export demand and in anticipation of another large domestic production year. 

Ukrainian sunflower oil is exported to over one hundred countries in the world. India, Egypt, and Turkey were the top buyers in the previous years with India usually buying about 30 percent of annual sales from Ukraine. However, the share of China and other Far East countries has been on the rise in recent seasons. 

Soybean oil exports in the last few seasons have been slowly expanding due to the rise in production and are expected to reach over eighty thousand tons by the end of MY 2013/15, over 20 percent increase compared to the previous season. 

Traditionally, the top buyer of Ukrainian soybean oil is Poland, purchasing almost half of all soybean oil sold by Ukraine. Belarus has also been a consistent buyer at the top of the list, but quantities sold to this destination have been slowly declining in the last three seasons. Notably, United Arab Emirates bought almost 1,000 tons of soybean oil from Ukraine in MY 2013/14 but there were no sales to this destination in September-December 2013 in the current season. 

Ukraine is expected to continue exploring various destinations for its soybean oil exports in the coming seasons as soybean crush capacity has been developed in the country and the attractiveness of this value-added product picks the interest of the trade.

Rapeseed oil exports from Ukraine have grown significantly from as little as 255 tons in MY 2010/11 to a projected 55,000 MT in MY 2013/14. 

In the first half of the current season, between July and December 2013, Ukraine exported 48,200 MT of rapeseed oil. Over 90 percent of this oil was purchased by the EU. Other notable buyers were the Far East, namely - India with 3,100 MT purchased or 6.4 percent share of total Ukraine’s rapeseed exports for the period, and China – 220 MT. The industry expects more sales going to the Far East with China’s growing interest in Ukrainian oilseed (as well as grain) commodities.

Meal

Production: 

Sunflowerseed meal will continue to be produced in large quantities in Ukraine as a byproduct of oil production. In addition, more soybean meal is expected to be produced due to an increase in soybean production in the country and in response to a strong demand from domestic poultry and animal production. Rapeseed meal production, though insignificant, is anticipated while rapeseed oil production is increasing in Ukraine. 

Consumption: 

Oilseed meal in Ukraine is used in poultry and animal production and a large share of it also exported. Sunflower meal is a traditional feed component in Ukraine. Soybean meal has been gaining in popularity in the country with establishment of large industrial poultry production that is still expanding. 

Soybean meal demand in the country is driven by already large and still expanding poultry production (projected by FAS-Kyiv to grow by 13 percent in 2014). Animal production sector is quite big as well in Ukraine. In 2013 State Statistical Committee reported poultry meat production of 0.9 MMT (cooking weight equivalent) and 0.4 MMT of pork (product weight equivalent). Also, Ukraine had over 2.5 million head of dairy cows in 2013 (beef cow population is almost non-existent).

Soybean meal made with MON 40-3-2 (Roundup Ready) soybeans were include in the Registry of Feed Sources, Deed Additives and Veterinary Drugs that Contain GMOs or Were Derived From GMOs. According to the official document, this GE source of feed is temporarily allowed for use in Ukraine from July 23, 2013 until July 22, 2018. 

Trade: 

Ukraine is expected to continue supplying its sunmeal to the EU, North Africa and the Middle East destinations. Strong demand for Ukrainian sunflower meal from its traditional buyers – Poland (up to 30 percent share) and Belarus (on average 15-17 percent share) – is anticipated to continue in the current and the upcoming seasons. Turkey’s share of sunmeal purchases from Ukraine has decreased over the last few seasons. For marketing year 2014/15, sunflowerseed meal exports from Ukraine are forecast to drop by almost 10 percent compared to the current season due to a projected lower new crop. 

Soybean meal exports from Ukraine are in general an insignificant quantity, under ten percent of overall soybean meal production in the country, because of high demand from the domestic buyers. Also, to satisfy the demand from local poultry producers, Ukraine imported a few shipments on soybean meal in 2013 at the end of the season when domestic stocks were depleted. A similar demand situation may be expected in the current and the upcoming season while domestic poultry and animal production is growing. 

Rapeseed meal has not been imported nor exported from the country due to low quantities produced by domestic crushers and thanks to the availability of other oilseed meals in the local market.

Policy: 

Agricultural Policy in Ukraine in regard to oilseeds and oilseed products has not changed much over the last year. Some developments are being discussed at the time of this report writing and others are pending implementation as follows. 

In April 2014, there was a draft law developed that would introduce an export duty for soybeans. The proposed rate of duty is set at 15 percent of it customs value but no less than 35 UER per ton. This measure is proposed to take effect starting in November 2014. Agrarians in Ukraine have split in their opinion on the subject and some are lobbying the GoU for this law, while others are against. 

On one side, development of modern and extensive sunflower seed crushing industry have become possible in Ukraine when the Government limited exports of sunseed in late 90’s – and early 2000’s by introducing an export duty. Sunseed exports then became less attractive than sales in the domestic market. Sunseed crush increased significantly allowing domestic producers to benefit from sales of the value-added products. At present some local businesses are interested in a similar support for the domestic soybean crush development. However, a number of local oilseed crushers already have the capacity to process soybeans. According to UkrOilProm (oilseed crushers association in Ukraine that unites over 90 percent of all oilseed processing plants in the country) crushing facilities in Ukraine are able to process about 2.4 MMT of soybeans a year. This figure is close to the total soybean quantities produced in Ukraine so far. Overall oilseed crush capacity in the country is projected to reach 14 MMT in 2014. Some question whether Ukraine needs any further expansion in oilseed crush at this point. 

On the other side, the immediate reaction of the local market to introduction of soybean export duty would be in drastic reduction of domestic soybean prices. Soybean profit margins for Ukrainian producers remained positive over the last years but were not as high as those of sunseed. Consequently, a reduction in domestic soybean prices may result in this crop losing its attractiveness, except for local poultry and animal production needs. 

At the time of this report writing Ukraine is interested in consistent cash inflows in the short-run and commodity exports are a good source that provides desired incomes. Discussions of this draft legislation are is still active. Adoption of soybean export duty at present is still in question. 

In spring 2014, the government voted for cancelation of mandatory certification of agricultural commodities like oilseeds and grains that will led to reduction in paperwork and time needed to transport and to complete export sales in Ukraine. The industry expects to have at least $5-7 savings on each ton of cargo as a result.

Also, in the last years, Ukraine had been negotiating Free Trade Agreement (FTA) with the EU that was originally going to be signed in 2013 and implemented starting in 2014. Signing of the document was postponed followed by political instability in the country. 

At the time of this report writing only part of the agreement has entered into force with economic and trade related issues scheduled to be adopted in November 2014. Political risks in Ukraine are quite high this year. If it does follow through with the rest of the agreement in late 2014, Ukraine will have to comply with to several major changes in its policy. Namely, to reduce its export duty on sunflowerseed exported to the EU from the currently existing ten percent down to zero. The reduction will be executed gradually within ten years from the time the policy enters into force. In this instance higher volumes of sunseed from Ukraine may be sold to the EU. However, further analysis of the issue is needed. These calculations would rely on the projected sunseed export price levels at the time of the policy taking effect. In addition, Ukraine would be expected to align its biotech legislation in line with that of the EU. 

As part of the FTA package signed between Ukraine and the European Union in spring 2014, the EU has lowered its import tariffs for Ukrainian products between May and November 2014 (or until the full economic part of the agreement is in force between the parties). As a result, Ukraine expects to increase exports of its oilseed commodities as well as vegetable oil and oilseed derived products to the EU. Overall quantities of traded goods during this term would be limited to the stocks available in Ukraine from the previously harvested crop. Part of Ukraine’s trade with other destinations may be redirected at this time to the EU. The EU’s demand for these goods and the price offers would be significant factors at play. 

For the purpose of this report, policy changes in regard to the above mentioned legislation that has not been adopted at the time of this report writing have not been factored into Ukraine’s oilseed and oilseed product supply and demand balances. 

Policy that remains in place in Ukraine is as follows. 

Among the requirements that Ukraine accepted upon WTO accession in 2008 was a commitment to reduce its export duties on oilseeds. Consequently, over the last years, sunflowerseed export duty in Ukraine was cut down to its present value of ten percent. No additional reduction is required by WTO. 

Ukrainian legislation does not allow production of genetically engineered (GE) crops in the country. Also, the Ministry of Agricultural Policy and Food of Ukraine requires all planting seeds intended for import into the country to be tested for genetically modified organisms (GMO) presence