FOREIGN TRADE OF OIL FOOD COMPLEX PRODUCTS IN THE CONDITIONS OF INTEGRATION OF UKRAINE

Antonyuk O. Ph.D., Associate Professor Department of Accounting and Auditing Odesa National Academy of Food Technologies Kanatna str., 112, Odesa, Ukraine, 65039 E-mail: olegantoni@ukr.net ORCID ID: 0000-0002-9182-4982 Antonyuk P. Ph.D., Researcher Department of Мarket Мechanisms and Structures Institute of Market Problems and Economic & Ecological Research of National Academy of Sciences of Ukraine Frantsuzskiy boulevard, 29, Odesa, Ukraine, 65044 E-mail: paul_antonyuk@ukr.net ORCID ID: 0000-0002-8100-2563


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ЕКОНОМІКА ХАРЧОВОЇ ПРОМИСЛОВОСТІ Том 12, Випуск 1/2020 problems with the export of certain types of products. The identification of opportunities to maintain and strengthen positions in the world markets for those types of products, is of particular relevance the realization of these products forms a significant part of Ukrainian exports and, in the first place, the production of the fat and fat subcomplex.
Forming of the aims of the research. The purpose of this study is to evaluate the export status of oilseeds and their processing products as constituents of agri-food products, and to substantiate proposals for a more rational use of existing resources to strengthen positions in the global market.
Giving an account of the main results and their substantiation. In recent years, the process of integration into the world economic processes of Ukraine, whose economy in the past has been somewhat closed, has intensified. An important factor of economic integration is foreign trade and first of all increase of export of goods. A special place in the increase of commodity exports is occupied by the products of the agro-food complex, which since 2014 has become the main export commodity of the state [1]. Agro-food products include the production of the oil and fat sub-complex: oilseedssunflower, soybean, rapeseed, and products of their processing -oils and oilcake, which make up a significant part of Ukraine's agro-food exports (table 1). Table 1 Export of products of oil-fat sub-complex of Ukraine *   Indicators  2009  2016  2017  2018 2018 at % to 2009 All exports of goods, million USD Export of agri-food products, mln USD Exports of oil and fat subcomplex products USD million including -oilseeds -oils -oilcake The share of production of oil-fat sub-complex (%) -in total exports -in export of agri-food products  [3] Exports of oil and fat sub-complex goods are growing much faster than exports of both agri-food and all commodity exports. As a result, over the last ten years -2009-2018, their share increased in exports of all goods from 7.2% to 15.5%, and in agri-food exports from 30.2% to 39.4%. On average, in 2016-2018, the share of oil and fat subcomplex goods in agri-food exports is 40.4%, against 38.1%, which is attributable to grain and maize. That is, in the agri-food export from Ukraine in recent years, the leading positions are occupied by the production of the oil and fat subcomplex, in which oil crops and products of processing enterprises are distinguished -oil and oilcake, whose exports are growing much faster than the export of oil raw materials. And the main export commodity in the composition of the oil and fat subcomplex is industrial production. From 2016-2018 export revenues, in the amount of 20887 million dollars, 15592 million dollars or 74.6% accounted for oils and oilcakes, which exceeded the 2009 figure of 66.9%.
In the export of oil raw materials, which occupies a quarter of the exports of the oil and fat subcomplex in recent years, there was the largest revenue from the sale of soybeans and rapeseed, as sunflower is exported in small quantities. Regarding the structure of export of industrial products -here the products of sunflower (oil and oilcake) prevail. In terms of crops, the largest export revenue is for seeds and sunflower processing products. But in this regard, there are positive changes, with the share of sunflower falling from 72.6% in 2009 to 68.6% in 2018, while the export of soybean oil, oilseeds and rape seeds has increased.
The achieved export volumes are the result of deep integration into the world economic processes, creation of a modern highly efficient, export-oriented branch of the Ukrainian economy and supply of domestic raw material resources.
During this period 60 new enterprises were created, as well as existing ones were reconstructed and modernized. Total investment in the industry exceeded $ 3 billion dollars.
Oil processing capacity has increased from 2.5 million tons per year in 1998 to 26 million tons in 2018, or by 10.4 times, incl. the processing of sunflower -20 million tons, soybeans -4 million tons and rapeseed -2 million tons. The created capacity for processing of sunflower already exceeds the gross fees by 1.5 times, which may require the beginning of import of raw materials.
The functioning of the oil market depends primarily on the size of the gross levy and the main directions of its use -domestic consumption, exports, imports, which are strongly influenced by state policy. Data on the production of oilseeds in the period of 1990-2018 are given in table 2.
Table the data of 2 show that during the period of independence, the production of oilseeds has made significant progress -gross harvest has increased by 7.6 times, mainly due to increase in acreage by 4.9 times and to a lesser extent due to sunflower yield, which though increased by 144.3%, soybean -by 2.3 times and rape by 168.4%, but inferior to the level of such EU countries as France, Germany, Romania, Italy [16].

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ЕКОНОМІКА ХАРЧОВОЇ ПРОМИСЛОВОСТІ Том 12, Випуск 1/2020  [3] The increase in oil yields should be considered as an important reserve for increasing the gross harvest even in the face of reduced acreage that already exceeds the allowed limits. In Ukraine, an extremely high level of crop saturation with oilseed crops has grown from 5.6% in 1990 to 32.0% in 2018. The situation is quite rare in the world. Thus, in the European Union, where rapeseed, sunflower and soybeans are the main oilseed crops, 11977 thousand hectares or 9.1% of the acreage was occupied in 2017 [17]. Despite significant growth in soybean and rapeseed production in Ukraine, sunflower re-mains the main oil crop, although its share has declined from 91.8% of total oil production in 1990 to 66.3% in 2018.
With the production volumes of sunflower, soybean and rapeseed far exceeding the needs of the domestic market, Ukraine is becoming an important player in the global market for oilseeds and their products. In recent years, Ukraine is the largest producer of sunflower in the world with a share of about 25% of the total world production (table. 3).  [3,15] Almost all sunflower crop is processed at domestic enterprises, and a small part of it is exported. In 2015-2018, only 376 thousand tons or 0.7% of the production volume was exported. The main importers are the countries of the European Union and Turkey.
Unlike sunflower, soybean and rapeseed production is largely export oriented. In 2010-2018 Ukraine significantly increased soybean production and came out on top in Europe. As domestic consumption of soybeans is much less than the volume of exports, Ukraine's position on the world market is stronger in exports than in its production. Ukraine is ranked eighth in the world by volume of soybean production, and sixth in terms of export after five such powerful soybean exporters as Brazil, USA, Argentina, Paraguay, Canada [14]. The main export destination for soybean exporters from Ukraine is Asia -4040 thousand tons in 2016-2018, or 51.5% of total exports. Three major importers stand out on this continent, accounting for 3811 thousand tons of deliveries during this period, or 94.3% of this area, including: Turkey -2388 thousand tons; Iran -1067 thousand tons; Lebanon -356,000 tons. The European Union is the world's second-largest soybean importer (13-16 million tons), in the last three years it imported 1708 thousand tons of soybean (less than Turkey), accounting for 21.8% Ukrainian exports. Restrictions on imports of soybeans from Ukraine by the European Union are attributed to the suspected production of genetically modified soybean varieties in our country. It is suggested that half of soybean is genetically modified in Ukrainian fields [11]. The main importers from the EU countries of the Ukrainian soybean in 2016-2018 are: Italy -354 thousand tons, Greece -337 thousand tons, the Netherlands -271 thousand tons and Poland -212 thousand tons which account for 68.7% of Ukrainian exports to EU countries. Third place in Ukrainian exports is Africa, which is mainly represented by Egypt. However, during this period, Egypt significantly reduced the purchase of Ukrainian soybeans from 840 thousand tons in 2016 to 419 thousand tons in 2017 and 171 thousand tons in 2018, ie almost by 5 times. Important soybean importers from Ukraine are CIS countries, mainly Belarus, which account for more than 95% of the CIS imports. Ukrainian exports of soybean to Belarus increased from 92 thousand tons in 2016 to 152 thousand ISSN 2312-847X ЕКОНОМІКА ХАРЧОВОЇ ПРОМИСЛОВОСТІ Том 12, Випуск 1/2020 tons in 2017 and to 355 thousand tons in 2018, or by 3.8 times [3]. In the last two years, there has been a significant increase in rapeseed production in Ukraine, allowing it to gain a foothold in the sixth place in the world, where the main producers are the EU and Canada. India and China, Australia are by a large margin. In world production, the share of Ukraine in 2017-2018 is about 4.0%. In the world export of rapeseed, which averaged 16.5 million tons in 2017/2018 and 2018/2019, the share of Ukraine is in the range of 14-15%, which allows it to be among the top three rapeseed exporters after Canada and Australia. To date, rapeseed production in Ukraine is mainly focused on exports -2136 thousand tons in 2017 and 2440 thousand tons in 2018, which is respectively 97.3% and 88.9% of output. Traditionally, the main export flows of rapeseed are sent to the European Union, one of the largest importers of this crop in the world, with an average annual import volume of about 4.2 million tons in 2016-2018.
In 2018, Ukraine exported 2140 thousand tons of rapeseed to the EU, which is more than half of their imports. During 2015-2018, the largest importers with the volume of imports were the following countries: Belgium -1582 thousand tons, Germany -1348 thousand tons, France -1094 thousand tons and the Netherlands -952 thousand tons. In total, they accounted for 84, 2% of Ukrainian rapeseed. The second, but much smaller in terms of imports from Ukraine were Asian countries -in 2015-2018 1035 thousand tons, or 14.8% of Ukrainian exports. Pakistan, the United Arab Emirates, Israel and Bangladesh are the main as well as constant buyers [3].
Ukraine not only exports oilseeds, but also makes significant purchases of seed, mainly sunflower seeds. These costs are becoming traditional in agri-food imports with a tendency to increase -table 4. As can be seen, the import of seeds is dominated by sunflower seeds, and sunflower and rapeseed purchases are constantly increasing. Only soybean purchases are reduced.
It should be noted that import costs are quite significant and account for 18-19% of imports of plant products. These imports are characterized by a high concentration of clearly identified suppliers [12]. The seeds of sunflower are mainly purchased by Turkey, USA, France, soybeans -Canada, Czech Republic. Today, Ukraine imports dozens of times more seeds than it exports. Such significant dependence on imports poses a certain threat to the national economy.
Vegetable oils -sunflower, rapeseed and soybean, and above all sunflower oil, which accounts for 93-96% of the revenue from vegetable oils, provide the largest export revenue from the sale of oil and fat subcomplex products. Ukraine is the world leader in the production and export of sunflower oil [18]. Today, Ukraine accounts for more than a third of world production of these products and about 56% of world exports. In the second place among the world exporters with a share of 21% of the world market is Russia, which is a serious competitor for our exporters. Export volumes of vegetable oils from Ukraine are given in table 5. Over the past five years, exports of soybean and rapeseed oil have grown at a rapid rate, bringing their share in vegetable oil exports from 4.9% in 2014 to 6.0% in 2018. More than 99% in soybean exports and rapeseed oil is crude unrefined oil. The main importing countries for soybean oil are China and Poland, and rapeseed oil is the EU and China. Ukraine has significant capacity to increase both the production and export of soybean and rapeseed oils, taking into account the capacity of the importing country, significant raw materials and available soybean and rapeseed processing capacity, currently only 20% loaded.

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Sunflower oil is now shipped from Ukraine to more than 120 countries. The main export destinations are Asian countries, which in 2014-2018 imported 68.1% of oil from Ukraine. The main importers from the continent are India, China and Iran. EU countries account for 25% of Ukrainian exports over the same period. Spain, the Netherlands, Italy, France and the United Kingdom are among the most important importers. The rating of the largest importers of crude sunflower oil is given in table 6.  [3] India is the main buyer of Ukrainian oil, increasing its purchases annually -from 1700 thousand tones in 2014 to 2458 thousand tones in 2018, despite the increase by the Government of India of import duties on vegetable oils to support domestic production. In some cases, Ukraine is losing its position in the sunflower oil market. Thus, in 2018, Ukraine exported to Egypt 100 thousand tons of sunflower oil, which is by 3.5 times less than in 2013 -355 thousand tons and Egypt dropped from third to ninth place in the rating of importing countries of Ukrainian crude oil . The reasons for such a significant decrease were the decrease in the consumption and import of sunflower oil, the increase in the production and consumption of soybean oil, the increase in the import of oil from Russia at a price that suits importers more. Due to increased production and exports of sunflower oil, Russian exporters can significantly squeeze competitors in the export markets, including the Chinese market, at a lower price -$ 20 per ton, although the quality of Ukrainian products is higher.
As can be seen from the data in table. 5, over 92% of exported oil is unrefined oil, which is explained by the structure of production. In the total production of refined and unrefined oil in 2017, refined oil amounted to 723.6 thousand tons, or only 12.1%. When there is an excess of the production of refined oil over domestic consumption, much of the production is exported. In recent years, the volume of exports is estimated at 400-450 thousand tons, which is only about 8% of total exports. The main importers are the Asian countries, including the largest of them: Malaysia, UAE, Jordan, Lebanon. Imports from four EU countries came from four countries -Belgium, Italy, the Netherlands, and Poland.
If Ukraine is firmly a leader in the world market for unrefined oil, the situation is different in the refined oil market. In this market, Ukraine ranks fourth, and Turkey, one of the main importers of crude oil from Ukraine, ranks first. The total capacity of refined sunflower oil in the world market is estimated at approximately $ 3.9 billion. Ukrainian exports are worth about $ 310 million. This means that Ukrainian sunflower oil producers should focus on this particular product category [9].
Ukraine can change its position on the world market due to the increase in export of high-oleic sunflower oil. There is increasing demand in the world for this type of product, which is even more olive in content than oleic acid. Global demand for such products is estimated at 2.5 million tones, including the EU marketabout 800 thousand tones. Ukraine is at the beginning of developing such a market -the processing capacity of high-oleic sunflower is only 500 thousand tones, and exports of high-oleic sunflower oil is not marked by special volumes and stability: -in 2017 -210 thousand tons, in 2018 -185 thousand tons. It should be noted that the stable development of oil and fat subcomplex in the part of sunflower oil production is possible only under conditions of export duty on sunflower seeds .
The need for protein products is increasing in the world and Ukraine is stepping up its role in supplying oilcake to the world market. An estimate of the production and export of oilcake is presented in table 7.
For the period 2014-2018, both production and export of oilcake, both as a whole and by species, has been increasing. Exports of sunflower cake during this period amounted to 96.3% of its production volume. Rapeseed cake is fully exported, and soybean cake is more than a third. Due to stagnation of domestic demand in Ukraine, both export volumes and its share in production are increasing. With such export volumes of sunflower cake, Ukraine holds a dominant position in the world market with a share of about 65% with total export of sunflower cake in the world of about 7 million tons. Despite the increase in production and export of soya bean meal and rapeseed oilcake, Ukraine's position in the world market is quite modest.

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ЕКОНОМІКА ХАРЧОВОЇ ПРОМИСЛОВОСТІ Том 12, Випуск 1/2020 The largest importers of oilcake are EU countries. Over the last three years, 56.4% of sunflower cake (Spain, Italy, Netherlands, Poland), 80.5% of rapeseed (Spain, Lithuania, Poland) and 33% of soybean (Poland, Hungary) have been exported there. A large amount of oilcake is imported from Asia. In 2016-2018, 24.1% of sunflower seeds -Israel, Turkey -were exported to the continent, and in 2018, China, which imported 619 thousand tones, was the largest volume compared to other importers. In previous years, China was not interested in procurement from Ukraine, but the situation changed as a result of a trade conflict between the US and China, when it became necessary to look for an alternative to US soybean and rapeseed cake [13]. Important importers in this period are the CIS countries -43.5% of Ukrainian exports of soybean cake and 12.6% of sunflower. Almost all CIS exports come from Belarus. A promising market is Africa (Morocco, Egypt), which accounted for 6.8% of Ukraine's exports of sunflower cake.
It should be noted that production and export volumes depend to a large extent on the global market conditions, including the level and dynamics of prices. Over the last five years, there has been an increase in production over the consumption of vegetable oils, which negatively affects the prices of oilseeds and products of their processing [10]. So for the period 2013/2014 MP and 2018/2019 MP the price of soybean oil decreased from $ 950. for 1 ton to $ 760 per ton, or 20%. Soybean is the main oilseed crop for the market, it is mostly produced in the world. Therefore, reducing the price of soybean oil causes a decrease in prices for other oilseeds and their products. The level and dynamics of export prices for the production of oil-fat sub-complex of Ukraine are given in table 8.  [3] Despite some growth in some export price positions in 2017-2018 compared to 2016, the price level in 2014 was unattainable. In addition, the main export commodity of sunflower oil and soybean prices continues ISSN 2312-847X ЕКОНОМІКА ХАРЧОВОЇ ПРОМИСЛОВОСТІ Том 12, Випуск 1/2020 In such circumstances, an increase in export earnings is ensured by an increase in the physical volume of exports. Indeed, the increase in exports of oil and fat subcomplex products from $ 6329 million. in 2014 to $ 7325 million in 2018, or 115.7% was accompanied by an increase in the physical volume of exports from 12361 thousand tonnes in 2014 to 15547 thousand tonnes, or by 125.8% in 2018. That is, losses from a decrease in export prices are offset by growth in production and exports of these kinds of products. Taking into account the existing opportunities for increasing yields and increasing the gross collection of oilseeds, as well as the insufficient level of utilization of processing capacities in Ukraine, there are reserves for further increasing the production of oilseeds and their products. The question remained is what level of world prices will turn out to be the limit beyond which the increase in Ukrainian exports will not be able to compensate for further price reductions.
Conclusions and prospects of the further investigations. During the period 2009-2018, exports of oil and fat subcomplex products increased by 2.5 times, and in recent years in agri-food exports of Ukraine, the products of the subcomplex occupy leading positions, even ahead of cereals and maize. Today, Ukraine is becoming an important exporter in certain segments of the global market for oilseeds and their products. However, the increase in quantitative indicators of production and export of products is not always accompanied by an increase in quality. As a result, in some respects, extensive directions prevail, which limits the ability to increase exports.
Further development of foreign trade in the products of the oil and fat sub-complex, preservation of existing positions on the world market requires qualitative improvement in both the raw material and industrial sectors of the sub-complex: -in the production of oilseeds, the priority should be to increase the yield to the level of the EU countries, which opens the possibility of reducing acreage, reducing the burden on the ground, especially at the expense of sunflower; -structural changes in the composition of oilseeds should predict an increase in the proportion of soybeans and rapeseed, while reducing the proportion of sunflowers; -the increase in the export value of sunflower oil is really possible due to the increase in the export of both conventional refined oil and high-oleic oil; -the balance of use of soybean and rapeseed in the direction of increasing its processing at domestic enterprises and exports of finished products requires a significant change; -constant monitoring of the situation on foreign markets for oil and oilcake should enable timely detection and response to changes in these markets in order to avoid or reduce losses of export earnings; Further research on the oil and fat subcomplex may be a more detailed assessment of individual segments of the oilseed market and their products.