Russia’s sunflower oil surplus contrasts with tightening feed protein supplies

Oil production exceeds domestic requirements

Russia is producing substantially more sunflower oil than its domestic market consumes, leaving processors with a sizable exportable surplus even as another part of the sunflower complex faces tightening supplies. According to ZOL.ru, the country’s sunflower oil self-sufficiency exceeds 140%, meaning production is more than 40% above domestic consumption.

Sunflower seed processing reached a record 17.5 million tonnes in the 2024/2025 season, ZOL.ru reported. The publication put crude sunflower oil production at close to 3.65 million tonnes. About 30% of that volume is exported, while the remainder is absorbed by the Russian market. These figures underline the industry’s dependence on both domestic sales and access to foreign buyers.

Consumer demand remains resistant to substitutes

Domestic sunflower oil consumption has continued to rise, reaching 8.1 kilograms per person, according to the report. Demand has remained resilient despite competition from palm and soybean oil, which are priced 18-24% below sunflower oil. ZOL.ru described demand elasticity in the segment as extremely low, indicating that changes in relative prices have had a limited effect on consumer purchasing.

This preference gives refiners and bottlers a stable domestic outlet, but self-sufficiency above 140% means local consumption alone cannot balance the market. Export demand therefore remains important for clearing excess oil and maintaining processing volumes. For exporters, the approximately 30% share sent abroad represents a significant channel, although the source did not identify destination markets or export prices.

Feed products underpin processing margins

The tighter part of the market is sunflower cake and meal, the protein-rich co-products left after oil extraction. ZOL.ru estimated their combined production at about 13.5 million tonnes and said the entire volume is consumed by Russia’s livestock and poultry sectors. Feed protein consumption is growing faster than production, creating a persistent deficit and supporting high prices.

This imbalance changes the economics of crushing. According to ZOL.ru, margins from cake and meal, rather than sunflower oil, currently provide profitability for many processing plants. Strong co-product prices can help crushers withstand volatility in finished vegetable oil prices and preserve demand for sunflower seed, even when the oil market itself is amply supplied.

The result is a divided market: Russia has surplus sunflower oil available for export, but insufficient growth in feed protein output to keep pace with domestic livestock and poultry demand. Producers and crushers benefit from firm demand for cake and meal, while livestock operators face a constrained feed market. The durability of processor margins will depend on whether rising feed demand continues to offset fluctuations in oil prices and export conditions.