The Ukrainian agricultural sector has recorded an unprecedented shift in export structure. For the first time in history, the country processed more than 40% of its own rapeseed crop domestically. This breakthrough became possible due to changes in tax legislation and a complex logistical situation that forced businesses to reconsider their raw material sales strategy.
Economic impact of processing
According to the UkrOliyaProm association, in the marketing year 2025/2026, which ended in June, the domestic volume of rapeseed processing exceeded 1.3 million tons. This accounts for 42% of the total harvest and is an absolute historical maximum. At the same time, raw material exports decreased by 38.6%, dropping to 1.9 million tons compared to 3.1 million tons the previous year.
The main result of this reorientation was an explosive growth in foreign exchange earnings. Rapeseed oil exports for the season increased 2.5-fold — to 520,000 tons. Financial indicators grew even stronger: foreign exchange revenue from oil sales jumped more than threefold, reaching $588 million compared to $194 million last year.
The role of export tariffs
The key factor that changed the situation was the change in export duty rates, which came into force on September 4, 2025. Rapeseed and soybeans were taxed at a rate of 10% of the customs value. At the same time, agricultural producers who grew the crop themselves retained the right to export products without paying duties.
The main blow from the new regulation was absorbed by intermediary traders. This stimulated the reorientation of part of the raw materials to domestic plants, which led to unprecedented loading of processing capacities. For the first time in the history of the Ukrainian agricultural sector, rapeseed was not completely exported abroad before the New Year. The plants worked non-stop: even in June 2026, 47,000 tons were processed, which was 23.7% higher than the volume of raw material exports for that month.
Production records and market trends
By the end of the calendar year 2025, rapeseed oil production reached 380,470 tons. This is twice the figures of the pre-war 2021 and six times higher than the results of 2022. At the same time, rapeseed meal production also increased — to 540,460 tons.
External market conditions also favored processors. Rapeseed quotes on the Paris Euronext exchange updated a two-year maximum, reaching €557.25 per ton. The price increase is due to the rising cost of oil, weather risks in Europe and, critically, the restriction of Ukrainian raw material exports by sea due to attacks on port infrastructure.
Security and logistics challenges
The shortage of sea logistics routes for exporting seeds stimulates their deep processing within the country. Companies with developed infrastructure have the opportunity to export finished oil at maximum world prices, receiving more currency from high value-added products.
However, systematic Russian attacks on infrastructure create serious risks. In mid-July, an attack was launched on an oil transshipment terminal in the Odesa region. As a result of a fire, which lasted 12 hours to extinguish, 25,000 tons of sunflower oil were damaged. At the end of July, one of the largest holdings, Allseeds, was forced to suspend operations to preserve the lives of workers and production capacities.
