Oil mills are halting sunflower processing due to high prices
Ukrainian oilseed processing plants are scaling back or completely halting sunflower processing due to a shortage of raw materials and high prices, which currently stand at 33,000–34,000 UAH per ton. Some companies are switching to processing rapeseed and soybeans, as sunflower processing has become unprofitable—losses can reach up to $25 per ton.
This is reported by Latifundist.
"At this price for sunflower seeds, there is no processing margin. For many plants, it is actually more profitable to shut down than to process. When a plant is shut down, it has fixed costs—roughly $9–10 per ton. These are employee salaries and other fixed costs... why generate a loss of $20–25 when you can generate a loss of $9–10 and shut down," noted Serhiy Repetskyi, co-founder and partner at Sunstone Brokers.
According to him, in this situation, halting production for some oilseed processing plants seems “economically more logical than operating at a loss.” Processors who refuse to buy expensive raw materials are switching to rapeseed residues, since the price of rapeseed oil at the Polish border allows them to turn a profit.
"There is no margin to buy at these prices (sunflower seeds — ed.). Or, only those plants with a longer value chain and integrated meat or dairy businesses can afford to do so," added Repetsky.
Sunflower seed stocks are currently concentrated among so-called “middle-tier” farmers. The first half of June is expected to be the period for the final sale of these stocks due to the start of the new rapeseed and barley harvest.
Putin calls for the mass deployment of war veterans to factories.
Tether has frozen over $213 million in USDT linked to businessman Gurhan Kiziloz due to an investigation in Brazil into possible tax evasion. The decision was made at the request of law enforcement agencies investigating the activities of his gambling platforms and crypto projects.
The Main Intelligence Directorate (GUR) has identified factories producing the Russian Su-57 fighter jet.
