Ukrlandfarming set soybean production marginality level
The price for soybean must be at least USD 400/t to reach the margin. This was informed by Volodymyr Fantuh, Head of Ukrlandfarming Agribusiness Development and Innovation.
"In order to generate marginality of soybean, the price must be at least USD 400/t. This crop is costly. Of course, if one does not produce GM soybean. We do not produce transgenic soybean in the holding. Last year, our soybean profitability was USD 500-550/ha in the Precarpathian region. The crop yield was 3-3.3 tons per hectare," noted Volodymyr Fantuh.
According to him, in 2019 Ukrlandfarming allocated 40 thousand hectares for soybean production. The area has not been increased so far, leaving the cropping plan similar to the prior year's. The company says that the price of this crop leaves much to be desired, so there is no point in increasing its production.
The expert stressed that soybean needs two rainfalls: in May and in late August. Such rains occur in the western regions of Ukraine, which is why Ukrlandfarming mainly grows soybeans there.
"This season there has been an increase in PPPs for soybean costs (+15%) and seeds (+25%). Unlike corn and wheat, soybean seeds are purchased. But with wheat and corn we have completely switched to our own seed grain, we have our own seed factories. Basically, the principle of Ukrlandfarming is not to go for the harvest, but for marginality," said the Head of Ukrlandfarming Agribusiness Development and Innovation.
He also stressed that practically all crop produced in Ukrlandfarming is exported. Therefore, the company's branches produce crops that have high biological ripeness and export quality.
Learn more: TOP 10 Soybeans Exporters from Ukraine in 2018
Previously reported that Oleg Bakhmatyuk, the founder of Ukrlandfarming, stressed the point that the mismanaged policy of the National Bank of Ukraine (NBU) prevents the Ukrainian economy from recovering.