4 ms·

A note that food oil prices are going up because of the war in Ukraine, which has reduced the availability of sunflower seed oil significantly, putting pressure

• Scoundreller 3y ago
  Cause or convenient excuse to raise prices? Just some math: 9% of edible oil production is sunflower oil. https://www.ers.usda.gov/data-products/chart-gallery/gallery/chart-detail/?chartId=104023 https://www.ers.usda.gov/data-products/chart-gallery/gallery... Ukraine historically produced 1/4 of that 9% https://latifundist.com/en/rating/uzhe-razlili-maslo-rejting-proizvoditelej-podsolnechnika https://latifundist.com/en/rating/uzhe-razlili-maslo-rejting... Let’s rule of thumb this and say production is half what it was in Ukraine (and assume nobody else has switched to edible oil crops and Ukraine doesn’t produce other edible oil crops, both probably false). That means there is 1.1% less edible oil going around this year for that reason. I think this is within the noise of good crop vs bad crop years, and edible oil is pretty elastic in use.
  • veidr 3y ago
    > Cause or convenient excuse > to raise prices? It's most commonly both.
  • AlecSchueler 3y ago
    When you make it about just the numbers 1.1% difference doesn't seem like much, but you have to remember there's a complex network of producers, distributors and buyers fighting to make up that difference, the practical results of which can have other knock on effects throughout the network. Also, to answer your question, sellers leveraging the shortage caused by the war in Ukraine is also a result of the war in Ukraine.