Sunflower or safflower oil and fractions market in Iraq

Earlier Report Observations

The Iraqi market for sunflower and safflower oil remained at a high level between 2018 and 2020, with volume exceeding 550 000 tons annually. This stability occurred against the backdrop of the ongoing Russian-Ukrainian conflict, which affected global sunflower oil prices and import flows into Iraq. During this period, the government granted an investment license to the Al-Rayan plant to diversify domestic production sources, though local output remained modest. In 2020, market volume rose to nearly 600 000 tons, an increase that coincided with global supply chain disruptions caused by the COVID-19 pandemic, which impacted seed supplies and production costs.

A sharp contraction followed in 2021, with the market shrinking to 379 000 tons. Despite this downturn, the year saw growing interest in establishing modern extraction lines and the entry of new companies into the Iraqi vegetable oil market, focusing on product diversification. The market rebounded strongly in 2022, reaching 573 000 tons, directly influenced by the Russian invasion of Ukraine. That event triggered a 58% surge in global sunflower oil prices within a month, reshaping import patterns and boosting demand for alternative and local oils in Iraq. Consumer preferences also began shifting toward healthier high-oleic sunflower oil.

In 2023, the market volume fell again to 431 000 tons. The continuing impact of the war on global supplies, coupled with changes in Iraqi import policies and customs duties aimed at encouraging domestic production, contributed to this decline. Throughout the period, both public and private sector investments expanded, with new contracts awarded in 2024 for food oil production facilities, including the high-capacity Al-Rayan plant, indicating a sustained push to reduce import reliance.

Production sunflower or safflower oil and fractions in Iraq

In kind, 2017-2020, t

Top producers of sunflower or safflower oil and fractions, 2017-2020

World map of production of sunflower or safflower oil and fractions, 2017-2020

The market showed significant volatility during this period. Production volumes fluctuated by a factor of 2, reaching their lowest point in 2017 and peaking in 2020. In 2020, Iraq produced 26 800 tons of sunflower or safflower oil and fractions, representing a modest year-over-year increase of 7.2%. The largest decline occurred in 2019 at 3.1%, while the most substantial growth was recorded in 2018 with a 94.4% increase.

Annual dynamics of production in Iraq in kind, 2017-2020, t

In value, 2017-2020, K $ US

The data indicates irregular fluctuations, reflecting a volatile market environment. Production values varied by 2.2 times, with the lowest point in 2017 and the highest in 2019. In 2020, the output of sunflower or safflower oil and fractions in Iraq was valued at 31 041 thousand US dollars, marking a significant decline of 15.6% from the previous year. The maximum value was recorded in 2019 at 36 781 thousand US dollars, while the largest increase occurred in 2018 with a 101.4% rise.

Annual dynamics of production in Iraq in value, 2017-2020, K $ US

Exports sunflower or safflower oil and fractions from Iraq

Exports in kind, K t

The market displayed an unstable trend throughout the timeframe. Exports varied dramatically, with a peak-to-trough amplitude of 25 times between 2018 and 2019. In 2020, Iraq exported 0.1 thousand tons of sunflower or safflower oil and fractions, representing a substantial increase of 441.0% compared to the previous year. The minimum value was recorded in 2019 at 0.0 thousand tons, while the maximum occurred in 2018 at 0.3 thousand tons. The largest decline was in 2019 at 96.0%.

Annual dynamics of product's exports from Iraq in kind, 2017-2020, K t

From 2017 to 2020, Turkey was the nearly exclusive buyer of sunflower or safflower oil and fractions from Iraq, accounting for 100.0% of total exports in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Iraq in kind, 2017-2020

Exports in value, M $ US

Volatility characterized the market behavior during these years. The highest export value was recorded in 2018, while the lowest occurred in 2019, resulting in a peak-to-trough ratio of 22 times. In 2020, Iraq exported 0.1 million US dollars of sunflower or safflower oil and fractions, reflecting a sharp increase of 325.9% compared to the previous year. The minimum value was in 2019 at 0.0 million US dollars, and the maximum was in 2018 at 0.4 million US dollars. The largest decline was recorded in 2019 at 95.4%.

Annual dynamics of product's exports from Iraq in value, 2017-2020, M $ US

From 2017 to 2020, Turkey effectively monopolized the exports in value terms of sunflower or safflower oil and fractions from Iraq, taking 100.0% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Iraq in value, 2017-2020

Imports sunflower or safflower oil and fractions to Iraq

Imports in kind, K t

After a two-year decrease, Iraq's imports of sunflower or safflower oil and fractions increased. In 2020, the import volume amounted to 572.9 thousand tons, up by 9.2% compared to 2019. The minimum value was recorded in 2019 at 524.5 thousand tons, while the largest decline occurred in 2018 at 8.8%.

Annual dynamics of product's imports to Iraq in kind, 2017-2020, K t

From 2017 to 2020, two markets—Ukraine and Turkey—played leading roles in imports in kind, together accounting for 89.8% of total flows, with the remainder distributed among other destinations.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Iraq in kind, 2017-2020

Imports in value, M $ US

After a two-year decline, Iraq's imports of sunflower or safflower oil and fractions increased. In 2020, Iraq imported a total of sunflower or safflower oil and fractions valued at the previous year's level million US dollars, showing a strong gain of 17.3% compared with 2019. Between 2017 and 2020, imports decreased by 14.4%, equating to an annualized rate of 5.0%. The minimum value was recorded in 2019 at 363.0 million US dollars, and the largest decline occurred in 2018 at 16.8%.

Annual dynamics of product's imports to Iraq in value, 2017-2020, M $ US

Throughout 2017–2020, Ukraine and Turkey were the core markets for imports in value terms, jointly accounting for 90.0% of total flows, while other destinations had comparatively modest shares.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Iraq in value, 2017-2020