KIEV, UKRAINE — A change in tax legislation has made Ukrainian soybean production more profitable and led to a 21% planting increase, according to a Global Agricultural Information Network (GAIN) report from the US Department of Agriculture (USDA).
Ukraine is expected to plant 1.6 million hectares of soybeans in the 2021-22 marketing year, compared to 1.3 million hectares in the 2020-21 marketing year. The USDA anticipates farmers to rotate some areas previously used for sunflower production to soybean in the 2021-22 marketing year.
The USDA estimates Ukraine’s soybean production in the 2021-22 marketing year to be 3.8 million tonnes, a 36% increase compared to the previous year’s total of 2.7 million tonnes.
The country’s soybean crush is anticipated to total 1.8 million tonnes in the 2021-22 marketing year based on the assumption national crushers will want to compete with exporters to restore profit margins following the previous unfavorable market year.
According to the USDA, soybean production in Ukraine is export driven and over half of the domestically produced crop are usually exported. Soybean exports in the 2021-22 marketing year is expected to be 2 million tonnes, up 20% compared to the previous year of 1.7 million tonnes.