LISTEN: Sunflower oil prices set to skyrocket amid Ukraine war
Morne Botes, commercial director at SOILL, says South African consumers
can expect sunflower oil prices to skyrocket as stock decreases around the
world.
SOILL is the maker of various oil brands sold in South Africa.
The change in sunflower oil prices comes as the UN's Food and Agriculture Organization announced on Friday that world food prices hit an all-time high in March as Russia's invasion of Ukraine sent shocks through markets for staple grains and vegetable oils.
Botes says Russia and Ukraine export 70% of the world’s sunflower oil.
“The sunflower market is under big pressure on the supply side so with the whole war situation with the Ukraine, suddenly a lot of the exports that are supposed to go out of the Ukraine in Russia was blocked.
“Ukraine and Russia, combined known as the ‘black seas’, account for almost 70% of the world’s sunflower oil exports and with that being blocked and South Africa being an importer as we don’t produce efficient stock locally to cover our demand, we are directly linked to the world market in pricing, which is driving the price up.”
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