Ukraine’s Fats and Oils Industry: Development Model and Export Orientation

Abstract

The fats and oils industry of Ukraine is a core component of the agricultural processing segment, playing a vital role in generating export revenues, ensuring food security, and maintaining the economic stability of rural areas. Amid global trade fragmentation and full-scale war, the sector has undergone profound structural shifts caused by the destruction of processing facilities, disrupted logistics chains, restricted access to raw materials, rising production and energy costs, and intensified trade and regulatory barriers in foreign markets. At the same time, the preservation of significant export potential and the adaptability of enterprises highlight the urgent need for a comprehensive industry development model focused on exporter support and market diversification. The proposed development model for Ukraine’s fats and oils industry is based on an integration of institutional, technological, and socio-economic levels: the institutional component involves strengthening state support for export-oriented producers, ensuring regulatory stability, developing export and logistics infrastructure, and creating a favorable investment climate under conditions of trade uncertainty. The technological level focuses on implementing innovations in deep processing of oilseeds, increasing production energy efficiency, digitalizing management processes, and expanding the range of high-value-added products competitive across various global market segments. The socio-economic level aims at human capital development, preserving employment in rural regions, and strengthening the internal foundations of the industry's economic resilience.
The implementation of the proposed model creates the conditions for reducing export dependence on raw materials, effective market diversification, increasing the competitiveness of Ukrainian fats and oils products, and establishing sustainable production and economic ties during the post-war recovery period. The comprehensive nature of the model allows the industry to adapt to external trade shocks and ensures long-term growth of value-added within the national economy.