Argentine soybean meal gains entry to China, challenging Ukrainian sunflower meal — ASAP Agri

In a quiet — and at first glance, seemingly insignificant — move, Chinese feed makers have booked their first-ever bulk shipment of Argentine soybean meal: 30 KMT at 360 USD/MT CNF, set to arrive in September. It marks the first actual delivery since China approved such imports back in 2019 — an approval that had remained dormant until now, Victoria Blazhko, Head of Editorial, Content & Analytics at ASAP Agri, told Latifundist.com.

Though traders refer to it as a “test case,” its implications extend far beyond a single vessel.

China, the world’s largest protein meal consumer, typically crushes over 100 MMT of imported soybeans — mostly from Brazil and the U.S. But amid fresh trade tensions and tariffs on U.S. goods, Beijing is accelerating its strategy to diversify protein sources, with Argentina — the world’s top soybean meal exporter — now officially on the menu.

Ukraine’s feed niche under pressure

Victoria Blazhko

Head of Editorial, Content & Analytics at ASAP Agri

"For Ukraine — the leading supplier of sunflower meal to China — this development presents a direct challenge. Ukrainian sunflower meal has long filled a valuable niche in China's feed industry: affordable, logistically flexible (both in bulk and containers), and a popular substitute for soybean meal in price-sensitive rations," the analyst marks.

But that competitive edge is now under pressure. If Argentinian soymeal proves viable in China, it could gradually displace sunflower meal in the very segments where Ukraine has been most competitive — including finisher pig diets, broiler feed, and low-spec aqua rations.

While sunflower meal offers a price advantage, soybean meal delivers higher protein content and better digestibility. At comparable price levels, feed mills may shift back toward soy to maximize protein efficiency.

As of 2 July 2025, Ukrainian sunflower meal in containers was offered at 282 USD/MT CIF Qingdao, with buyer ideas at 280 USD/MT — roughly 80 USD/MT cheaper than Argentine soybean meal. However, once protein content is factored in, the cost advantage begins to fade.

Sunflower meal typically contains 28–30% crude protein, while soybean meal delivers 46–48%. On a per-protein basis, that puts Ukrainian sunflower meal at 9.4–10.1 USD per 1% protein, compared to 7.5–7.8 USD for Argentine soymeal — giving soy the upper hand on value.

In other words, soybean meal may be more expensive per ton, but it offers better value per unit of protein.

China remains the top destination for Ukrainian sunflower meal, though 2024/25 volumes are trailing last year’s pace, largely due to a smaller domestic sunflower crop. Alongside China, Poland and Turkey round out the top importers — but China alone accounts for nearly one-third of Ukraine’s total sunflower meal exports.

So, if Argentina’s “test shipment” clears Chinese inspection — and more follow — Ukraine’s grip on this key market may loosen.