Leonid Kozachenko: Ukraine will maintain its role in global vegetable oil production

President of the Ukrainian Agrarian Confederation Leonid Kozachenko, speaking on Suspilne News, commented on the situation in the vegetable oil market, price prospects, energy challenges for producers, and Ukraine’s role in ensuring global food security.

Will Ukraine have enough oil, and will consumers be able to buy it at an affordable price?

— Ukraine will have enough food — both vegetable oil and other food products. Ukraine remains one of the world’s largest food producers, despite the extraordinarily difficult conditions that no other country in the world is currently facing.

Our farmers are finding ways to survive not for their own sake alone. Even if our losses were twice as high as they are now, we would still have more than enough food for domestic consumption. However, we will not simply endure — we will fight and feed not only ourselves, but also the world, where about 25,000 people die from hunger every day. The world must recognize this and help Ukraine repel the aggressor, restore, and expand what has been lost due to the war.

Oil production is an energy-intensive sector. How realistic is it to operate amid power outages?

— It is difficult, but it is realistic. Many enterprises are already using technologies that convert agricultural processing by-products into biofuels. This reduces dependence on diesel fuel for generators and allows producers to access cheaper energy compared to those forced to purchase fuel entirely on the market.

At the same time, it must be understood that energy constraints directly affect production costs, and this is a factor businesses cannot ignore.

How does business behave under such conditions: does it cut production or raise prices?

— Ukraine has a market economy, and administrative price controls do not deliver results. Today, everyone is guided by market prices. The average price of a bottle of sunflower oil is about UAH 80, which is UAH 7–8 higher than during the same period last year.

It is important to emphasize that this is not about producers seeking to increase profits. Prices are rising due to the circumstances the country has found itself in as a result of hostilities. Price increases are a way to survive.

For comparison, in EU countries the average price of a bottle of oil is around EUR 2, meaning it is more expensive there than in Ukraine.

What is Ukraine’s position on the global oil market?

— Ukraine used to be the world’s largest producer of sunflower oil. Today, the aggressor state is attempting to compete with us for this position by increasing its production of oilseeds. At the same time, an unexpected factor has been India, which has stopped purchasing Russian oil. This reduced global demand and, to some extent, restrained price growth.

Overall, the situation is extremely difficult — we are going through the most challenging period in the history of Ukraine’s oil and fat industry. However, my forecast is unequivocal: we will withstand it.

Moreover, Ukraine not only maintains its leadership in sunflower oil production but has also set a new record in rapeseed oil production, which is currently in high demand in EU countries. We are also increasing soybean oil production.

The global trend toward biofuels opens up new opportunities, so the focus on rapeseed oil will continue to grow. At the same time, demand for sunflower oil will remain strong, as it is one of the best oils for cooking, medicine, and animal feed production.

Today, agriculture is the largest stabilizing force of Ukraine’s economy.

Could Ukraine import oil in the next 2–3 years?

— Olive oil — yes, we will import it. Demand for olive oil is growing due to its health benefits. At the same time, sunflower oil will remain the leading oil consumed in Ukraine.

Ukrainians are highly adaptive and quickly adjust to new challenges. In the long run, Ukraine will once again become a benchmark for other countries in agricultural production.

IC UAC according to Suspilne. News