Formation of the cost of the sunflower oil production cycle: a study of the oil and fat industry of Kostanay region of Kazakhstan

In the context of projected growth in global food demand and increasing risks to food security, enhancing the sustainability of agri-food systems is becoming increasingly important. The article examines the structure and dynamics of costs for sunflower oil production using the example of the oil and fat industry of Kostanay region of the Republic of Kazakhstan. The objective is to identify key factors in cost formation, assess the impact of individual expense items, and substantiate directions for improving the economic stability of the industry. Methods include structural and factor analysis of costs, calculation of the share of cost elements and their impact on prices (basic economic formulas), applied to aggregated statistical indicators of sunflower oil to determine the most significant cost categories and changes affecting production cost fluctuations. The empirical base includes data from the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan for 2020–2024. Under conditions of limited access to de tailed financial reporting of enterprises, a method of proportional allocation of expenses to produced output was used. Results show the dominant role of material costs, accounting for more than 94% of the cost of a unit of market product, indicating high raw material dependence of the oil and fat sector and its vulnerability to price fluctuations. The impact of labor and depreciation costs remains secondary. The increase in cost indicators is largely due to rising prices for raw materials and services of third-party organizations. Conclusions substantiate the need to optimize resourceoriented policies, reduce material intensity, develop local production and logistics links, and implement comprehensive tools for managing financial burden throughout the value chain

1. Onyeaka, H., Anumudu, C.K., Okpe, C., Okafor, A., Ihenetu, F., Miri, T., Odeyemi, O.A., Anyogu, A. (2022). Single cell protein for foods and feeds: A review of trends. Open Microbiology Journal, 16, e187428582206160 [in English].

2. Badrudeen, T.U., Nwulu, N., Olorunfemi, B.O., Esan, O. (2025). Optimization and cost evaluation of hybrid solar–wind–diesel–battery model for agri-food production in South Africa. Results in Engineering, 28, 3573–3588 [in English].

3. Davis, B., de la O Campos, A.P., Farrae, M., Winters, P. (2024). Whither the agricultural productivity-led model? Reconsidering resilient and inclusive rural transformation in the context of agrifood systems. Global Food Security, 43, 15–25 [in English].

4. Kibasa, E., Vicent, V., Rweyemamu, L. (2025). Moringa-enriched sunflower oil: A novel approach to enhancing nutritional quality and oxidative stability. Food Chemistry Advances, 9, 223–231 [in English].

5. Acemoglu, D., Restrepo, P. (2020). Robots and jobs: Evidence from US labor markets. Journal of Political Economy, 128(6), 2188–2244 [in English].

6. Carroll, J., Denny, E., Lyons, R.C., Petrov, I. (2024). Better energy cost information changes household property investment decisions: Evidence from a nationwide experiment. Energy Economics, 139, 266–288 [in English].

7. Bin Jumah, M.N., El-Sherbeeny, A.M., Farhan, A.M., Allam, A.A., Al Zoubi, W., Abukhadra, M.R. (2025). Recycling spent black tea as a novel heterogeneous acidic catalyst for efficient biodiesel production from waste cooking oil: Optimization, kinetics, and thermodynamic insights. Chinese Journal of Analytical Chemistry, 53(11), 112–128 [in English].

8. Gutiérrez, M. (2021). Making better decisions by applying mathematical optimization to cost accounting: An advanced approach to multi-level contribution margin accounting. Heliyon, 7(2), e06096 [in English].

9. Du, Z.Y., Wang, Q. (2024). Tackling financialization amidst rising labor cost in China. Borsa Istanbul Review, 24(5), 996–1005 [in English].

10. Alventosa, A., Pacheco Pires, C., Ferreira Jorge, S., Pinho, J., Catalão-Lopes, M. (2023). How does firms’ cost structure affect their quality–price mix? An experimental analysis. Journal of Behavioral and Experimental Economics, 107, 432–448 [in English].

11. Hussain, F., Khan, F., Ahmad, J., Huo, H., Jiang, T., Rana, I., Habib, S., Farooq, M.U. (2025). Sunflower (Helianthus annuus L.) hybrids: Strategic crossbreeding techniques to efficiently enhance yield and oil quality. Phyton – International Journal of Experimental Botany, 94(10), 3231–3249 [in English].

12. Ayu, A.M., Anjani, G., Afifah, D.N., Asikin, Y., Ayustaningwarno, F. (2024). Enhancing quality and stability of herbs, spices, and citrus flavored vegetable oil: Challenges and future developments. Future Foods, 10, 832–845 [in English].

13. Watton, J., Unterhitzenberger, C., Locatelli, G., Invernizzi, D.C. (2025). Beyond cost overruns: How cost is actually reduced in complex projects. International Journal of Project Management, 43(7), 51–63 [in English].

14. Official statistics of the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan. (2026). Kostanay region statistics. Available at: https://stat.gov.kz/ru/region/kostanay/ (accessed 12.01.2026) [in Russian].

15. Crosnier, A., Baudry, G., Jeangros, L., Meier, E.S., Cisco, G., Spring, L., Barjolle, D. (2025). True cost accounting for food application: Environmental, social and health impacts of bread. Case Studies in Chemical and Environmental Engineering, 12, 135–147 [in English].

16. Dekamin, M., Rezaei, H., Nabavi-Pelesaraei, A. (2025). Balancing profit and planet: A comprehensive analysis of watermelon farming through material flow cost accounting (MFCA). Case Studies in Chemical and Environmental Engineering, 12, 375–387 [in English].