Sunflower or safflower oil and fractions market in South America

Earlier Report Observations

From 2018 to 2019, the market volume for sunflower or safflower oil and fractions in South America remained relatively stable, rising slightly from 1 063 thousand tons to 1 083 thousand tons. In 2020, it fell to 921 thousand tons.

The market rebounded sharply in 2021, reaching 1 392 thousand tons. This growth was partly driven by changes in Argentina's export duty scheme, which made overseas shipments less attractive and increased domestic availability. The following year, the Russian invasion of Ukraine severely disrupted global sunflower oil supply chains, prompting South American producers to boost exports. As a result, the regional market volume dropped to 816 thousand tons in 2022. By 2023, Argentine production expanded due to increased planted area and demand from the food and biofuel sectors, helping lift the market volume back to 1 171 thousand tons.

Production sunflower or safflower oil and fractions in South America

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

South America's production of sunflower or safflower oil and fractions declined after two years of growth. In 2019, output reached its peak at 1 579 K t, representing a 6.5% increase from the previous year. However, by 2020, production had fallen to 1 199 K t, marking a substantial 24.1% decrease compared to 2019. Over the 2017-2020 period, overall production decreased by 16.5%, with a compound annual growth rate of 5.8%.

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

In value, 2017-2020, M $ US

South America's production of sunflower or safflower oil and fractions declined for the third consecutive year. In 2020, the output was valued at 1 080 M $ US, down 15.9% from the previous year. Over the 2017-2020 period, production value decreased by 38%, with a compound annual growth rate of 14.7%.

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

Exports sunflower or safflower oil and fractions from South America

Exports in kind, K t

After two years of growth, South America's exports of sunflower or safflower oil and fractions declined. In 2019, exports peaked at 581.8 K t, reflecting an 8.9% increase from 2018. By 2020, exports had fallen to 443.3 K t, a solid contraction of 23.8% compared to 2019. Between 2017 and 2020, exports decreased by 16.3%, equating to an annualized rate of 5.7%.

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

From 2017 to 2020, South America's exports of sunflower or safflower oil and fractions were relatively evenly distributed. India accounted for 21.3% of exports in kind, Mexico for 5.8%, and South Africa for 3.9%. Together, these three countries represented 31.0% of total export flows.

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

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

Exports in value, M $ US

South America's exports of sunflower or safflower oil and fractions declined for the third consecutive year. In 2020, exports were valued at 399.5 M $ US, marking a 15.6% year-over-year decrease. Between 2017 and 2020, export value fell by 37.8%, equating to an annualized rate of 14.7%.

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

From 2017 to 2020, India, Mexico, and Australia were notable but not dominant buyers of South America's sunflower or safflower oil and fractions in value terms. India accounted for 19.3% of export value, Mexico for 5.4%, and Australia for 3.8%. Their combined share reached 28.4% of total export value.

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

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

Imports sunflower or safflower oil and fractions to South America

Imports in kind, K t

Import volumes showed significant volatility during this period. In 2019, imports reached their lowest point at 86.2 K t, marking a 45.2% decline from the previous year. By 2020, imports had surged to 165.6 K t, an abrupt 92.2% year-over-year increase. The peak-to-trough ratio between 2019 and 2020 was 1.9 times.

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

From 2017 to 2020, Ukraine, Turkey, and Spain were the leading sources for South America's imports of sunflower or safflower oil and fractions in kind. Ukraine accounted for 2.8% of imports, Turkey for 1.8%, and Spain for 0.8%. Together, these three countries represented 5.4% of total import flows.

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

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

Imports in value, M $ US

In 2019, South America's imports of sunflower or safflower oil and fractions reached their lowest value at 274.3 M $ US, an 11.8% decline from the previous year. By 2020, imports had risen to 295.4 M $ US, a modest 7.7% year-over-year increase. The peak value was recorded in 2018 at 311.1 M $ US. Over the 2017-2020 period, import value decreased by 3.1%, equating to an annualized rate of 1.0%.

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

From 2017 to 2020, Ukraine, Turkey, and Spain were central to South America's imports of sunflower or safflower oil and fractions in value terms. Together, these three markets accounted for 6.1% of total import flows.

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

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