Ukraine: in 2018, the average profitability of sunflower and soybeans production reached the 5-year minimum — APK-Inform

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APK-Inform

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In 2018, Ukrainian agricultural producers received the average profitability rates of sunflower seed and soybeans production, at the level of 5-year minimum: 32.5% and 21% respectively, according to the official figures.

According to the oilseed market analyst at APK-Inform Agency, Julia Ivanitskaya, the trend developed, due to the fact that increasing of the supply of oilseeds contributed to reduction of the purchasing prices in 2018/19 MY. As for soybeans, the price decline was more significant, due to the negative impact of the global market situation: overproduction of soybeans in the world, high carry-over stocks, the current trade war between the USA and China, which resulted in significant reduction of the imports and consumption of soybeans.

The season-2018/19, which ended in August 2019 for the oilseed segment of Ukraine, demonstrated the record export volumes of sunflower seed and soybean by-products. Taking into account the current stable capacities of the domestic market, the export figures of oilseed by-products are the main benchmark in estimation of the real volumes of raw materials, the expert noted.

According to APK-Inform estimations, in 2018 sunflower seed production in Ukraine totaled 15.2 mln tonnes, an increase of 12% compared with the previous year. Also, agrarians harvested almost 4.8 mln tonnes of soybeans (up 14%), taking into account the final appraisal results. Both crops demonstrated the maximum harvest figures, due to the growth of yield indicators, as well as sunflower seed planted areas also increased.

You can read more detailed information about the results of the oilseed season-2018/19 in Ukraine and forecasts for the new MY in the article "Forecasts of sunflower seed and soybean harvest in Ukraine — APK-Inform".

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