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Argentina consolidates its position as the European Union's main sunflower seed supplier

Argentina went from 1.4% to 39.0% of the European sunflower seed market in the first four months of the 2026/27 cycle, with 101,144 tonnes, following Ukraine's withdrawal due to its 10% export duty.

Why did the European Union stop buying from Ukraine and what impact does that shift have on the price received by Argentine producers?

Argentina has consolidated its position as the leading supplier of sunflower seed to the European Union following Ukraine's withdrawal from that business. In the first four months of the 2026/27 marketing cycle, which began last July 1, the EU-27 imported 259,235 tonnes of sunflower seed, 63% more than in the same period of 2025, according to official European Commission data.

The country tops the ranking of suppliers with 101,144 tonnes shipped to the EU-27 in the period, accounting for 39.0% of the market, compared with 1.4% recorded in July-October 2025.

Ukraine used to be the largest seller of the product, but since October 2025 it has applied a 10% export duty on sunflower seed to promote the industrialization of the oilseed at origin, which forced the EU-27 to urgently seek alternative suppliers. Although the first options at hand were shipments from Moldova and Serbia, from 2026 onward Argentina positioned itself as the largest supplier, not only because of the availability of goods but also because it is a country free of war and logistics risks, a weighty factor in the current situation.

Ukraine continues to prioritize sunflower oil exports to the EU-27, especially in the present context, where the logistics restrictions in force in the Black Sea make it necessary to prioritize higher value-added exports. In addition, following the entry into force of the Free Trade Agreement between Ukraine and Turkey, since last October an annual quota of 50,000 tonnes of sunflower seed exempt from the 10% tariff was established for exports to Turkey; volumes exceeding that quota remain subject to the 10% export duty.

For Argentina, the diversification of the sunflower trade matrix represents a mechanism that improves the FAS price, since seed shipments complement most of the demand from the oil industry. In that context, while last week the Rosario Board of Trade estimated a theoretical FAS price of 735,000 $/tonne for available sunflower for delivery in Rosario, the values traded, according to the Sio Granos platform, came to exceed 800,000 $/tonne.