A change in tax legislation has made Ukrainian soyabean production more profitable and led to a 21% increase in planting, World Grain reported from US Department of Agriculture (USDA) data on 12 April.
Ukraine is expected to plant 1.6M ha of soyabeans in the 2021/22 marketing year compared to 1.3M ha the previous year, according to the Global Agricultural Information Network (GAIN) report.
The USDA estimated Ukraine’s soyabean production in the 2021/22 marketing year would be 3.8M tonnes, a 36% increase compared to the previous year’s total of 2.7M tonnes.
Ukraine’s soyabean crush was expected to total 1.8M tonnes in the 2021/22 period based on the assumption that national crushers would want to compete with exporters to restore profit margins following the previous unfavourable market year, the report said.
According to the USDA, soyabean production in Ukraine is export driven and over half of the domestically-produced crop is usually exported.
Soyabean exports in the 2021-22 marketing year were expected to be 2M tonnes, up 20% compared to the previous year’s total of 1.7M tonnes.