Uzbekistan’s domestic oil and fat market is growing faster than its own raw material base: imports remain the main source of meeting demand, while domestic oilseed processing is lagging behind consumption. Oybek Zufarov, Chairman of the Association of Vegetable Oil Producers of Uzbekistan, said this during the VI International Conference Asia Grains&Oils Conference in Tashkent 2026.

He said that 105 large oil and fat enterprises are currently operating in Uzbekistan. According to the expert, vegetable oil production increased by almost 38% in 2026 compared with the same period in 2025. At the same time, imports of oil and fat products reached $985 million, totaling 454 thousand tons of oil and 710 thousand tons of meal. Soybean meal dominates the import structure (more than 400 thousand tons), followed by sunflower meal (around 200 thousand tons), rapeseed meal (less than 50 thousand tons) and others. Sunflower oil accounts for 75% of Uzbekistan’s oil imports, palm oil and fats for 18%, rapeseed oil for 4% and cottonseed oil for 3%.

The expert also highlighted an interesting development: for the first time, Uzbekistan began importing refined cottonseed oil from China and palm olein from Southeast Asian countries.

As for exports, Uzbekistan’s foreign-currency earnings from shipments of oil and fat products abroad increased by 61% in the first nine months of the 2025/26 MY, reaching $100 million.

Zufarov stressed that Kazakhstan and Uzbekistan should move from competition for raw materials and markets to coordination of production, investment, pricing and trade policies.

“Uzbekistan is the largest buyer of Kazakh oil. In the 2025/26 MY, vegetable oil exports from Kazakhstan increased by 39% year on year. Almost half of the total volume, or 48%, is shipped to Uzbekistan, while the rest is distributed between China and countries in the region,” the speaker said.

He noted that Kazakhstan is rapidly expanding its oilseed production potential, with sunflower, rapeseed, flax and soybean planted areas and production increasing for the third consecutive year, primarily in the northern grain-producing regions that are switching to more profitable oilseed crops. In 2026, the total area planted to oilseeds in Kazakhstan reached 5.2 million hectares.

“The expansion of planted areas opens up an opportunity for direct Uzbek investment in processing facilities in Kazakhstan, with guaranteed sales of the products on the Uzbek market. A shift from crude oil to refined and specialized products increases the margins of joint ventures and reduces Uzbekistan’s dependence on volatility in raw material prices,” the head of the Association of Vegetable Oil Producers of Uzbekistan said.