Poland keeps Ukrainian rapeseed embargo as domestic crushers face widening supply gap
Poland is maintaining its embargo on Ukrainian rapeseed while domestic processors warn that declining harvests could leave them short of up to 1.3 million tonnes. The industry says imports of Ukrainian oil and meal, rising energy costs and pressure on retail oil prices are eroding crushing margins.
Processing capacity exceeds domestic supply
Poland’s oilseed-processing industry is facing a widening shortage of rapeseed while the government maintains restrictions on imports from Ukraine. According to Farmer.pl, Poland is the European Union’s third-largest rapeseed producer after France and Germany and accounts for about 20% of EU output. Yet its position may weaken as domestic sowings and expected production decline.
Polish crushing plants can process more than 4.1 million tonnes of oilseeds annually, according to data from the Polish Association of Oil Producers, or PSPO, cited by Portal Spożywczy and Farmer.pl. The 2025 rapeseed harvest was approximately 3.6 million tonnes, leaving insufficient domestic supply to use the industry’s full capacity. The sector comprises more than a dozen large plants that currently process over 3.6 million tonnes of raw material but could handle more than 4 million tonnes.
The supply gap may become larger with the current harvest. Preliminary data from Poland’s Agency for Restructuring and Modernisation of Agriculture put the rapeseed area at about 1 million hectares, down 93,000 hectares from a year earlier. Industry organisations forecast production of 2.8 million to 3.2 million tonnes, potentially creating a raw-material deficit of as much as 1.3 million tonnes for domestic processors.
Embargo protects growers but restricts crushers
The industry has called for a review of the ban on Ukrainian rapeseed imports, which has been in force since April 2023. Agriculture Minister Stefan Krajewski has said the embargo will remain, with the sale of Polish farmers’ crops taking priority. The policy limits access to Ukrainian seed but does not cover processed products such as rapeseed oil and meal.
Processors argue that this distinction puts Polish plants at a disadvantage. Ukraine is expanding its crushing capacity and exports finished products to the EU, according to Farmer.pl. Consequently, shortages in Poland and elsewhere in Europe can be covered by Ukrainian oil and meal rather than by importing seed for processing inside Poland. Adam Stępień, PSPO’s director general, told Newseria that differences in processing and energy costs leave Polish operators in a weak competitive position.
The restrictions also create competing interests within the domestic supply chain. The embargo shields Polish growers from direct competition with Ukrainian seed, while crushers need additional raw material to raise plant utilisation. Industry groups have warned that Poland could fall from third to fourth place among EU rapeseed producers, potentially being overtaken by Romania, where the planted area is increasing and yield forecasts are more favourable.
Seed prices, retail pressure and energy costs squeeze margins
Raw-material availability is only part of the profitability problem. The average Polish rapeseed purchase price reached 2,318.84 zł per tonne at the beginning of July, up 3.7% from a month earlier and 1.8% year on year, according to agricultural market information cited by both publications. Processors say margins contract when finished-oil prices do not rise in line with seed costs. Frequent rapeseed-oil promotions by retail chains have added further price pressure.
Biofuels provide the sector with its largest potential outlet, but regulation restricts further growth. Poland uses more than 1 million tonnes of rapeseed oil for biofuels, equivalent to processing almost 2.5 million tonnes of seed. The EU’s RED II rules limit the contribution of biofuels made from food and feed crops toward renewable transport targets. The domestic food market is also mature, consuming 1 million to 1.2 million tonnes of rapeseed annually, equivalent to about 400,000 tonnes of oil, with no sustained growth.
PSPO is therefore seeking compensation for oilseed processors as energy-intensive businesses. Such support already covers some Polish industries exposed to high electricity prices and indirect costs from the EU Emissions Trading System. Without more raw material, lower energy expenses or regulatory changes, the industry says Polish plants risk surrendering market share to foreign processors even while substantial domestic crushing capacity remains unused.
