CANNING INDUSTRY ON ALERT DUE TO THE LACK OF UKRAINIAN SUNFLOWER OIL

Ukraine is a major supplier of agricultural raw materials, especially to the old European continent. Russia’s invasion of Ukraine is already beginning to have an impact on international markets. Some of Ukraine’s main agricultural areas, such as Kharkov, Dnipropetrovsk or Zaporizhzhia, are located near the disputed areas of Luhansk and Donetsk, which could jeopardize harvests and lead to major grain shortages.

At present, 60% of all sunflower oil imported by Spain comes from Ukraine, the leading producer of sunflower followed by Russia, so the current situation of war conflict is generating great concern about the energy rise and the lack of supplies of oil raw materials, which fully affects the canning sector. Companies have already mobilized in the search for alternatives and are studying contingency plans, but the solution is far from easy.

It is almost impossible to find a substitute since Spanish domestic production is not sufficient to meet the current demand and the second candidate to meet this demand for oil is precisely Russia.

“Our contacts with suppliers tell us that there is still some calm, there are reservations. There are some ships already on their way, but we do not know how long this situation will last or what will happen next. If Russia eventually annexes Ukraine as happened in the case of Crimea, then the country could be affected by sanctions,” says Roberto Alonso, deputy secretary general of Anfaco Cecopesca.

Undoubtedly, the most affected product will be tuna, the king of canned fish. “About 75% of canned fish is canned tuna and more than half uses sunflower oil. We will have to look for substitute vegetable oils such as soybean oil,” adds Alonso.

It won’t be cheap either. The tension in the area is already reflected in higher prices. Other edible oils are up 38% from a year ago, ahead of even olive oil.

But this is not the only escoyo. Like many other businesses, canneries are also being affected by the increase in the price of electricity, to which must be added the can itself, which has also become twice as expensive. The aluminum from which they are made, like other raw materials, has also risen because the thermal process needed to convert it into packaging requires a lot of energy. This situation does not seem to be stopping for the time being.