Ukrainian Soybean Meal to Belarus Grows by 36%

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Nov 8, 2022 | Agricultural Markets

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In Ukraine, soybean crops were in good condition, and the total harvest was expected the level 2.5-2.7 million tons this year. According to the estimates of “Danube Soy,” the crops sown area in the 2022 season is practically the same as last year’s indicator (In 2021, 1.28 million hectares of soybeans were planted). The northern, central, and western regions are more suitable for soybean growing. Most of the land with soybeans, namely 75%, is located in areas with no active hostilities. Therefore, the expert believes that Ukrainians will harvest soybeans from 80% of the sown areas, which will amount to 2.7 million tons. A yield of 2.5 t/ha was forecast.

 Since the beginning of the calendar year, as of August 2022, Ukraine has exported approximately the same volume of soybeans as in the same period of that year. Since the beginning of the war, about 373,000 tons of soybeans have been exported. A larger share was exported through the port of Izmail, and another 35% – by rail.

 83% of Ukrainian soybeans exports fell in 6 countries – Turkey, Germany, Romania, Poland, the Netherlands, and Italy. As for reserves, according to the expert, it is practically impossible to calculate them. However, market operators claim that beans are still in warehouses and sufficiently large volumes. According to the AgFlow data, Turkey led their export market with 0.4 million tons in 2021-2022, followed by the Netherlands (0.1 million tons), Italy (0.06 million tons), and Greece (0.02 million tons).

Ukrainian Soybean Meal to Belarus Grows by 36%

Ukrainian Soybeans Price

The price of soybeans in Ukraine today depends on the situation in the world market and the geopolitical situation. After long-term growth and stability of indicators, the purchase price has been gradually decreasing recently. On average, at the beginning of the current year, the price of soybeans dropped by UAH 4,500-5,300 per ton and reached UAH 9,000-10,000 with or without VAT.

Agricultural companies specializing in soybean cultivation in Ukraine control numerous parameters of production and export processes. Among them are the country’s total exports, local fluctuations in purchase prices, costs for transportation through ports and overland, and global market conditions.

The costs that soybean producers in Ukraine face every day are also important. The final price is directly affected by the cost of agricultural machinery, fuel and lubricants, depreciation, sowing materials, and fluctuations in the national currency. Today, these parameters must be taken into account to obtain an accurate and profitable new purchase price for soybeans for the enterprise.

This agricultural crop is in great demand among foreign buyers looking for the best deals in different countries. To sell them products in bulk at a high purchase price through the ports, Ukrainian entrepreneurs try to achieve maximum stable harvests and carefully organize the collection of soybeans, processing and storage in the elevator, and transportation.

Taras Kachka, Deputy Minister of Economy and Trade Representative of Ukraine, said: “Fluctuations in production reach a million tons. This is a large volume of soybeans. And it means that the Ukrainian soybean market has not yet realized which client to focus on: GM or non-GM soybeans, this soybean goes to China or the EU. The fact that a significant share of Ukrainian soybeans (actually 20%) is exported to Belarus, since processing facilities have appeared there indicates that the domestic soybean market is not yet fully formed. Therefore, global political volatility will affect business decisions in Ukraine”.

According to him, soy may become such an interesting product for farmers that other markets will begin to compete for it, and the role of Ukraine will grow due to purely natural reasons. Ukraine increased the export of soybean meal to Belarus by 36%.

Other sources: https://agravery.com/

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