KIEV: The outlook for the next 2018/19 season prompts us to discuss again soybean production profitability, which increased from 1.3% to 52% in 2008-2016, though being unstable.
In general, soybean cultivation costs and domestic purchase prices have followed an upward trend since 2008. At the same time, the 2015-2017 level of costs stayed above the average, while 2017 prices, on the contrary, sank under the pressure of global soybean market trends.
As a reminder, the Agrarian Economics Institute estimated that soybean production margin would be down almost by half at 25.4% in 2017. has already stated that, combined with tax novelties, this would undermine farmers’ interest in growing soybeans.
The 2018 planting season is fast approaching, and the development/stagnation (underline as appropriate) vector of the Ukrainian soybean market will depend on both lawmakers and growers themselves.
