HIGHEST PRICE IN OVER TWO YEARS Since war broke out, prices have moderated but remain susceptible to weather conditions, export policies, and shifting planting patterns. In 2023, droughts in key producing regions caused further price spikes, while government-imposed export restrictions in Russia and Ukraine added additional strain. In early 2024, sunflower oil prices saw another round of fluctuations, with prices initially declining due to increased supply from Argentina but rebounding as production forecasts for Ukraine were revised downward. This ongoing volatility has forced many food processors to remain agile in their procurement strategies.
On February 24th the spot price for sunflower
oil rose to $1,384 per tonne, which is the highest price level since November 2022. Since the harvesting campaign began, last autumn, prices have shown a steep incline, which only momentarily decreased in late December and early January. What is tempering another significant price increase is the competition of Russian sunflower oil. On February 27th
the Russian Ministry
of Agriculture announced that it will halve export duties on sunflower oil come March. Flexible export duties have been in place since 2021 in Russia. Especially in India and Turkey, there is competition from sunflower oil with Russian origin.
TRENDS IN THE POTATO PROCESSING SECTOR The potato processing industry, particularly in North America and Europe, has seen a sustained increase in demand for premium fried products, driving a greater reliance on sunflower oil. Fast food giants and snack food producers have been at the forefront of this trend, responding to consumer demand for crispier textures and cleaner ingredient lists.
However, cost pressures are forcing companies to rethink their supply chain strategies. Some processors are exploring hybrid oil blends to mitigate cost risks, while others are investing in long-term contracts with suppliers to stabilise pricing. Sustainability is another factor shaping industry decisions, with food companies seeking responsibly sourced oils that meet stringent environmental and social governance criteria.
OUTLOOK AND STRATEGIC CONSIDERATIONS While sunflower oil remains a staple in potato processing, the industry must navigate a complex landscape of supply disruptions and price swings. Companies that can strike the right balance between quality, cost, and sustainability will have a competitive advantage in an increasingly discerning market.
For now, potato processors are keeping a close eye on geopolitical developments and agricultural output forecasts. With demand for processed potato products expected to rise, the ability to secure a stable supply of sunflower oil—or viable alternatives—will be crucial for maintaining margins and meeting consumer expectations.
Sunflower oil price in $ per metric tonne
500 1000 1500 2000 2500 3000
0
Spot prices for sunflower oil reached their highest level in late February since November 2022, the year of the war-outbreak in Ukraine.
Source: DCA Market Intelligence
The potato processing industry, particularly in North America and Europe, has seen a sustained increase in demand for premium fried products, driving a greater reliance on sunflower oil.
20 | ADMISI - The Ghost In The Machine | Q1 Edition 2025
4-3-2022 4-5-2022 4-7-2022 4-9-2022 4-11-2022 4-1-2023 4-3-2023 4-5-2023 4-7-2023 4-9-2023 4-11-2023 4-1-2024 4-3-2024 4-5-2024 4-7-2024 4-9-2024 4-11-2024 4-1-2025
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44
