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In brief: Sunflower oil shortage from Russia-Ukraine conflict
Rafaela Sousa

Rafaela Sousa

26 April 2022

In brief: Sunflower oil shortage from Russia-Ukraine conflict

The Russian invasion of Ukraine has resulted in a shortage of sunflower oil and led to increases in the prices of other cooking oils, such as rapeseed, soybean and palm. Russia and Ukraine are major producers of sunflower oil and combined, they account for about 60% of global production and approximately 80% of global exports, according to research firm Mintec. A spokesperson for UK oil refinery Edible Oils Limited (EOL), a joint venture between ADM and Princes Limited, told FoodBev: "With 80% of the global supply of sunflower oil historically coming out of Ukraine and Russia, the war has undoubtedly had a profound impact on the global supply of sunflower oil. It is looking likely that there will be no Ukrainian crop in 2022, and the position in terms of crops and infrastructure in future years is of course in serious doubt, indicating that this could disrupt the sunflower oil supply for some time to come." As businesses switch to alternatives in the face of dwindling sunflower oil supplies, the price of other popular cooking oils has been impacted. Sky News has reported that crisp, oven chip and cereal bar manufacturers are being forced to change their recipes and replace sunflower oil with refined rapeseed oil. EOL's spokesperson added: "There is a certain level of fluidity between the uses of edible oils, and while they do all serve different purposes and possess varying properties, the likes of rapeseed, corn and soybean oil are potential alternatives for consumers at home but also manufacturers". "We anticipate that UK customers and consumers will increasingly switch to rapeseed and corn oil as a replacement for sunflower." The UK’s Food Standards Agency advised that food products labelled as containing sunflower oil may contain refined rapeseed oil instead, explaining that the shortage has led to some food manufacturers urgently switching oils before being able to make the change on the label. “We are therefore advising that food products labelled as containing sunflower oil may instead have been produced using refined rapeseed oil, and consumers should look out for additional information being provided by retailers and manufacturers to stay informed,” the agency said. Meanwhile, Indonesia, the world’s largest palm oil producer, has announced an export ban that comes into effect later this week, as it looks to control skyrocketing domestic prices. Palm oil prices have surged to historic highs this year amid growing demand and weak output from the world’s top producers, according to Reuters. While it excludes crude palm oil, the ban will cause further disruption in the global edible oils market.

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