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Ukraine Land - Part of the Sunflower Triangle

By Obelisk on 13 October 2009

Latest news from Ukraine agricultural land brings reports of record sunflower seed oil exports. The crops of sunflower seeds from Ukraine land have been so good that several multi-nationals are planning large-scale investment in Ukraine land.

In the marketing year 2008/09, Ukraine land exported more 58% more sun oil volume than the previous year. The value of the sun oil exports is US$1.57 billion and was an absolute record for Ukraine. Sunflower crops from Ukraine land were exported to mainly India, Turkey and Egypt. According to the Deputy Minister of the Ukraine Agrarian Policy department, official forecasts are for even higher sunflower crops for the 2009/2010 marketing year.

Ukraine land along with Russian and Argentinian land forms part of the so-called Sunflower Triangle. These three countries are responsible for the production of 51% of the world's sunflower crops. In the marketing year 2008/2009, Russia, Argentina and Ukraine produced 86% of global exports of sunflower seed oil.

Sun oil is in increasing demand. In the ten years from 1999 to 2008, global sunflower production grew by 20% with consumption of sunflower products (oil and seeds) rising by 25%. As a result, more land is being used for sunflower crops.

Sunflowers have several advantages as crops. The shorter growing season means a sunflower crop can be sown and harvested after wheat. Alternating sunflower with grain and soybean reduces pest problems. And sunflowers don't mind the drier conditions in the summer.

As a top global producer of sunflowers, Ukraine land is currently a focus of major foreign investment. Glencore, one of the world's largest supplier of soft commodities, and ADM, a world leader in agricultural processing, are both reported to be expanding their sunflower crops on Ukraine land. Glencore currently owns a sunflower seed crushing plant in Ukraine with an annual capacity of 250,000 tonnes.

Sunflower crops are part of the process to ensure maximum potential from investment in Ukraine agricultural land. Ideally, crop rotation should include wheat, barley, rapeseed, corn and sunflower. This ensures optimum usage of the land as well as increasing yield and consequently, profit from investment in Ukraine land.

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