Sunflower seeds: This is what will happen when China really gets going
November 30, 2018 at 7:13 AM ,
Der AUDITOR
3 million mt processing capacity
The oil mills in Bulgaria can crush as much as 2.2 million mt of sunflower seeds per year. It is also estimated that there are more than 100 hullers in the country, which can process more than 800,000 mt. Due to this year’s production of ca. 1.88 million mt, not even the additional record of 350,000-400,000 mt imported seeds from Moldova will suffice to fully utilize the plants.
China “only” wants 100,000 mt per year
Rumour has it that China intends to import roughly 100,000 mt of hulled sunflower kernels from Bulgaria per year. Three companies have already received approval for this, and more are to follow.
However, it is not yet clear how long China will require supplies from Europe. Nevertheless, traders in Bulgaria reckon that the quality standards will not be as strict as in Europe. This renders a cooperation with China highly attractive for some suppliers.
Market players are therefore expecting temporary fundamental changes for the European market. The trade in hulled sunflower kernels could change from a buyers’ into a sellers’ market. Price increases are very well possible.
Since Bulgaria has sufficient processing means, the situation is expected to shift again in the long run once the market has adjusted to the rise in demand. Both large and many small and medium-sized enterprises will then make full use of their processing capacities.
View more information:
- price chart, sunflower kernels, hulled, bakery, Eastern Europe
- price chart, sunflower seeds, unhulled, black, Bulgaria
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