Sunflower Shortage - Bulgarian Oil Producers Suspend Operations. Will the Price of the Kitchen Essential Go Up?

Sunflower oil producers in Bulgaria are closing their plants en masse due to a shortage of sunflower seeds. This was reported by the industry association. The reasons are the poor sunflower seeds harvest from last year and the suspension of sunflower seeds imports from Ukraine. How will this affect sunflower oil prices in shops?

Currently, there is enough sunflower oil in the shops across the country. According to the Commission for Commodity Exchanges and Markets, the average wholesale price of sunflower oil on the exchanges is BGN 3.26 per litre, while in shops, including various promotions, it ranges from BGN 2.80 to BGN 6.00 per litre.

Compared to last year, sunflower oil prices have risen by 20%.

Vladimir Ivanov, Chairman of the State Commission for Commodity Exchanges and Wholesale Markets:

"Oil prices are normal. We are seeing a gradual upward trend, which began after it became clear that the harvest was poor. There was an expectation for prices to surge to BGN 6 per litre, as it was in 2022. Fortunately, this did not happen, and once again the market proved to be the best regulator."

Currently, the market is not suffering, but there is a shortage of raw material among sunflower processors in Bulgaria. The sunflower harvest was poor, and the import from Ukraine was banned. As a result, many processors have had to close their plants, reduce sunflower oil exports by nearly 70%, and prepare for losses. Will this affect sunflower oil prices in Bulgaria?

Yani Yanev, of the Bulgarian Sunflower Processors Association, explained:

"The forecast for oil prices is that there will be no significant fluctuations, because if we are unable to produce sunflower oil at competitive prices, it will be imported from oil-producing countries in the European Union or third countries."

The sowing of sunflowers is currently underway, and this year, the planted areas in Bulgaria are significantly larger compared to last year. Agricultural producers are hopeful for a good harvest. The prices at which sunflowers will be bought by the end of the year will also depend on the harvest in neighbouring countries.