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June 2000 Edition
Export Taxes Hinder Sunflowerseed Exports by Russia and Ukraine in 1999/2000
Russia and Ukraine’s sunflowerseed exports are expected to fall about 30 percent due to taxes imposed on oilseed exports. Sunflowerseed is the largest oilseed crop for these countries and accounts for the majority of oilseed exports. The Government of Russia imposed a 10-percent export tax in January 1999, while the Government of Ukraine instituted a 23-percent export tax in September of 1999 to encourage producer sales to domestic processors to boost utilization of existing oilseed crushing capacity. As a result, Russia’s sunflowerseed exports have fallen from 950,000 tons in 1997/98 and 890,000 tons in 1998/99 to an estimated 800,000 tons in 1999/00. Ukraine’s sunflowerseed exports are expected to fall to 420,000 tons in 1999/00 from 876,000 tons in 1998/99. Sunflowerseed crushing is expected to increase during 1999/00 for each country. The effects of the export taxes will cost these countries market share as the European Union is expected to increase sunflowerseed imports from competing suppliers such as Bulgaria, Hungary, and Romania to fill the gap left by the Former Soviet Union block. In addition, large availabilities of sunflowerseed in Russia and Ukraine are likely to lower domestic prices which may encourage some farmers to cut area planted to sunflowerseed for the upcoming crop year.
Approved by the World Agricultural Outlook Board/USDA
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