News
23.03.2018
Sown areas under soybeans will be reduced mainly by small producers
According to a survey conducted by UCAB analytical team «UCAB Metrics 2018: Seeds, Plant production products and Fertilizer», half of Ukrainian soybean producers plan to change the sown areas this year.
The share of agrarians who plan to reduce soybeans production is greater than those who said that they will increase the sown areas under this crop - 23% vs. 19%, respectively.
When considering certain categories of agricultural enterprises by the number of agricultural land bank, the tendency to reduce the areas planted with soybean was show by small and medium agrarian enterprises which have in processing up to 1000 hectares of land. Enterprises with land bank from 3,000 hectares mainly expressed their intention to increase the size of the areas planted with soybeans. On average, 4% of agricultural enterprises responded that they do not plan to sow the soybeans at all.
Such «turbulence» in the dynamics of sown areas is likely to be the result of an uncertain political situation around this crop due to the cancellation of export VAT refunds and, as a consequence, the unpredictability of soybean profitability. A negative consequence of high volatility in the dynamics of sown areas will be a violation of the structure of crop rotation, which, in turn, can lead to the reduction in yields of other crops.
