Sunflower or safflower oil and fractions market in MERCOSUR

Earlier Report Observations

The market volume for sunflower or safflower oil in MERCOSUR showed significant variability from 2018 to 2021, rising from 911 000 t to a peak of 1 199 000 t. This overall expansion occurred despite a contraction to 829 000 t in 2020, with production levels fluctuating in tandem.

In 2022, the market volume fell sharply to 730 000 t as exports from the region surged to 820 000 t. This shift was primarily driven by a change in global trade flows: Ukraine's reduction in sunflower oil exports created an opportunity for alternative suppliers like Argentina within MERCOSUR to increase their international sales, diverting a larger share of production away from the domestic market.

A partial recovery to 881 000 t occurred in 2023, supported by a rise in production to 1 763 000 t. During this period, regional trade dynamics were further influenced by Colombia's imposition of a 30% tariff on imports of these oils from Ecuador, a measure that altered competitive conditions within the broader MERCOSUR trade environment.

Production sunflower or safflower oil and fractions in MERCOSUR

In kind, 2017-2020, K 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

MERCOSUR's production of sunflower or safflower oil and fractions saw a decline after two years of growth. In 2019, output reached its peak at 1 499 thousand tonnes, but then fell sharply by 24.9% year-over-year to 1 125 thousand tonnes in 2020. Over the 2017-2020 period, production decreased by 18.7%, with an average annual decline of 6.7%. The largest annual increase occurred in 2019, when production rose by 6.4%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

MERCOSUR's production value of sunflower or safflower oil and fractions declined for the second year in a row. In 2018, it peaked at 1 169 million US dollars, but by 2020, it had dropped to 956 million US dollars, marking a significant 17.3% decrease from the previous year. From 2017 to 2020, production value fell by 14.7%, equivalent to an average annual decline of 5.2%. The largest annual increase was recorded in 2018 at 4.3%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports sunflower or safflower oil and fractions from MERCOSUR

Exports in kind, K t

Exports of sunflower or safflower oil and fractions from MERCOSUR declined for the third consecutive year. In 2020, export volumes totaled 383.8 thousand tonnes, showing a sharp 31.0% decrease compared to the previous year. Over the 2017-2020 period, exports fell by 49.1%, with an average annual decline of 20.1%.

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

Between 2017 and 2020, MERCOSUR's exports of sunflower or safflower oil and fractions in volume terms were not highly concentrated. The top three destinations—India with 23.6% of exports, Chile with 19.2%, and Mexico with 6.4%—together accounted for only 49.2% of total export flows.

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

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

Exports in value, M $ US

Export values of sunflower or safflower oil and fractions from MERCOSUR fell for the third year in a row. In 2020, exports were valued at 326.0 million US dollars, representing a solid 24.0% drop from the year before. From 2017 to 2020, export values decreased by 46.5%, with an average annual decline of 18.8%.

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

Data from 2017 to 2020 show that MERCOSUR's exports of sunflower or safflower oil and fractions in value terms were not heavily concentrated. Chile accounted for 22.7% of export value, India for 21.3%, and Mexico for 6.0%, with these three countries together making up just 49.9% of total flows.

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

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

Imports sunflower or safflower oil and fractions to MERCOSUR

Imports in kind, K t

Import volumes of sunflower or safflower oil and fractions into MERCOSUR showed volatility during the observed period. In 2019, imports hit a low of 36.1 thousand tonnes, but then surged by 143.7% year-over-year to 88.0 thousand tonnes in 2020. This represents a 2.4-fold increase from the 2019 low to the 2020 high. The largest annual decline occurred in 2019, when imports fell by 43.5%.

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

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

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

Imports in value, M $ US

Import values of sunflower or safflower oil and fractions into MERCOSUR increased for the second consecutive year. In 2018, imports reached their lowest point at 67.9 million US dollars, but by 2020, they had risen to 88.6 million US dollars, marking a substantial 21.2% increase from the previous year. Over the 2017-2020 period, import values grew by 20.9%, with an average annual growth rate of 6.5%. The largest annual decline was recorded in 2018 at 7.3%.

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

From 2017 to 2020, Belgium was the leading source in MERCOSUR's import structure for sunflower or safflower oil and fractions in value terms, accounting for 0.7% of total import flows.

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

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