Agrarian Economy 2022 Т. 15 № 3-4: 21-29

Rapeseed market: current conditions

L. Voinycha, Candidate of Economic Sciences (PhD), Associate Professor
ORCID ID: 0000-0002-8079-0289
A. Verzun, Candidate of Economic Sciences (PhD), Associate Professor
ORCID ID: 0000-0003-4078-237X
Lviv National Environmental University
J. Wojciechowska-Solis, PhD.
ORCID ID: 0000-0002-4634-0241
Uniwersytet Przyrodniczy w Lublinie

https://doi.org/10.31734/agrarecon2022.03-04.021

ANNOTATION

The results of the study of the rapeseed market and the impact of the full-scale aggression of the northern neighbor on its functioning are presented. The rapeseed market is developing dynamically, and Ukraine occupies the position of a key player on it. The domestic rapeseed market annually consumes 5-15% of the products produced by national producers, and therefore the countries of Europe and Asia are the main buyers of Ukrainian rapeseed and its products.

It is found that rapeseed is an export-oriented product of the national agricultural sector. High prices in the foreign market create a number of financial advantages for Ukrainian farmers directly and the state as a whole: the foreign exchange market receives significant foreign exchange injections, which positively affects the national currency exchange rate; state and local budgets are filled with tax payments based on the results of the activities of producers, intermediaries, etc., direct rapeseed producers receive real cash flows, which are a prerequisite for the full provision of economic activity in the next production periods.

It is established that the rapeseed market has experienced a slight negative impact from military actions. In 2022/2023, the volumes of rapeseed sales in export marketing year haven’t almost decreased as compared to the same indicators of the previous marketing year. Even in the conditions of the full-scale war, due to favorable market conditions in the foreign rapeseed market, agreements at the highest level on the functioning of the «grain corridor», sanctions against Russian producers, Ukraine managed to maintain its position among the largest exporters of rapeseed and in the future will increase the production volumes, and therefore effectively compete in the rapeseed market.

KEY WORDS

rapeseed, rapeseed market, forward prices, foreign currency earnings, export-oriented crop, seeds, oil, meal

FULL TEXT

LINK

  1. Chekhov, S. A., 2015. Rape market in Ukraine. Productivity of agro-industrial production, economic sciences, 27, pp. 77–83.
  2. Experts name the risks for the rape market in the war season, 2022 [online] Available at: https://superagronom.com/news/15671-eksperti-nazvali-riziki-dlya-rinku-ripaku-u-voyennomu-sezoni [Accessed 15 October 2022].
  3. Forward prices for rapeseed in Ukraine reached $620/t, 2022 [online] Available at: https://landlord.ua/news/forvardni-tsiny-na-ripak-v-ukraini-siahnuly-poznachky-620-t / [Accessed 14 October 2022].
  4. Kersaniuk, Yu., 2022. Global and domestic rapeseed markets [online] Available at: http://agro-business.com.ua/agro/ekonomichnyi-hektar/item/24923-hlobalnyi-i-vnutrishnii-rynky-ripaku. html [Accessed 02 October 2022].
  5. Kuts T., 2015. Analysis of the current situation at the rapeseed market in Ukraine. Young scientist, 2 (17), pp. 1168–1171.
  6. Kyrychok, S., 2021. Ukrainian rapeseed market: high global demand forms new trade flows [online] Available at: https://www.apk-inform.com/uk/exclusive/topic/1522808 [Accessed 03 October 2022].
  7. Makovei, Y., 2022. In Ukraine, they offer to ensure the unhindered export of rapeseed [online] Available at: https://kurkul.com/news/31254-v-ukrayini-proponuyut-zaprovaditi-bezpereshkodniy-eksport-ripaku [Accessed 18 October 2022].
  8. Maslak, O., 2011. Rape market: demand exceeds supply. Agribusiness today, 15–16 (215), pp. 28–32.
  9. Oilseeds: World Markets and Trade, 2022 [online] Available at: https://apps.fas.usda.gov/psdonline/circulars/oilseeds.pdf [Accessed 14 October 2022].
  10. Sabluk, P. T., Oliinyk, V. M., Stelmashchuk, A. M. and Malanchuk, L. M., 2008. Rape - an effective raw material for the production of biodiesel: scientific and practical edition. Ternopil: Good work.
  11. Statistical collection «Agriculture of Ukraine», 2021. State Statistics Service of Ukraine, 2022 [online] Available at: http://www.ukrstat.gov.ua [Accessed 15 October 2022].