Falling demand for soybean meal expected in EU

In its November report, Donau Soja forecasts soybean production in the EU 4.5% up YoY in 2021, at 9.4 mln t. Experts also expect a drop in demand for non-GMO soybean meal, Feed Navigator reports.

The average soybean yield in 2021 is pegged at 2.17 t/ha, which is slightly lower than last year's result, 2.23 t/ha. The growth is expected to be highest in Ukraine (+530 thou. t) and the European part of Russia (+163 thou. t).

Non-GMO soybean meal prices have peaked and are now softening. In the past four weeks, however, soybean meal production has fallen dramatically.

Italian processors are currently uncompetitive to produce soybean meal for export compared to Germany and Hungary, where Ukrainian soybeans are easier and cheaper to import. Some processing companies in Italy are already planning to reduce crushing by 20% by the end of September 2022.

The demand for non-GMO soybean meal could drop by 150,000 tons, according to Donau Soja estimates.

As of 25 November, soybean harvest in Ukraine was 100% completed. The new crop totalled 3.42 mln t. The crop yielded 2.67 t/ha on average in Ukraine.