Experts note that sunflower profitability currently reaches nearly 60%. This is significantly higher than that of most other crops.
Profitability for agricultural producers from sunflower cultivation currently stands at approximately 58%, according to experts. Compared to other popular crops, it’s difficult not to notice a significant gap.
For example, soybean profitability currently stands at approximately 33%, rapeseed at 30%, and flaxseed at 35%. This is significantly lower than that of sunflower.
At the same time, it should be noted that oilseed profitability generally remains higher than that of other crops, such as grains.
As a result, many agricultural companies are beginning to allocate more acreage to oilseeds, as they offer higher profits.
Meanwhile, oilseeds are facing additional factors driving price increases. One of these is the drought in Russia’s southern regions, which limited sunflower supply. Consequently, sunflower prices began to rise.
«The drought in the southern regions limited sunflower supply, thereby supporting domestic prices.
Rapeseed remains resilient due to high export demand, which helps offset rising costs.
At the same time, the expected record soybean supply is putting pressure on prices, reducing margins compared to last season,» notes Margarita Svishcheva, head of the Ruseed analytical center.
Furthermore, sunflower profitability may vary across different Russian regions. In regions hardest hit by the drought, competition in this market is minimal, resulting in high sunflower prices.
Where the harvest of this crop is healthy, prices will accordingly be lower.
Of course, the influence of the global market on the price of oilseeds within Russia must not be forgotten.
However, high duties and export bans currently largely offset this impact. However, if regulatory policies change, this could also become a significant factor in price changes, analysts warn.
At the same time, the development of sunflower production is unthinkable without increasing processing capacity.
We are currently seeing this capacity grow. Experts predict that by 2025, it will increase by approximately 5%. This will ultimately reach approximately 35 million tons.
The high demand for sunflower oil currently observed on the global market allows us to maintain prices at a comfortable level for sunflower and oil producers.
