
Increased local demand and profits
One reason for increased production is “increased local demand for derived products along with a range of other factors, such as requirements for rotation and relative profits in comparison with alternative rights “, stated IGC.
Although Russia and Ukraine are still substantially small players in the world market soi, he expects, that in the season 2024/2025 they will total 13.1 million ton in, which is an increase of 10 percent. in compared with the previous year. Because plants are improving only significantly and still significantly below the world average, IGC stated, that the most increase is resulting from increased area crops.
In Russia, where growing local demand for soy products from the feed and food sectors has been the driving force, crops are first in the eastern and central parts of the country. IGC estimates that production soy in Russia for the 2024/2025 season will be 7 million ton, compared with 6.7 million ton in the previous year.
Russian import and Ukrainian export
Although Russia is the largest producer in the region, import soy remains an important element of the balance of supply and demand in the country, with in the last years consumption significantly exceeded 1.5 million tons.
Supplies are usually sourced from Brazil and Argentina, but in some seasons quantities arrive from Paraguay – IGC noted. However increased supplies in global markets have caused the import position net to projected 400 000 ton in the season 2024/2025. Russian exports rose sharply increased, reaching a peak of 1.3 million ton in season 2022/2023 and averaged 1 million ton in the last five years. Nearly all supplies soy from Russia go to China.
Despite the invasion of Russia three years ago Ukraine remains the largest exporter of soy in the CIS, accounting for nearly 70 percent of Ukraine’s the revenue of the region in the last five years. In the season 2024/2025 the war-stricken Ukraine will most likely export a record 3.7 million tons of soy.
Supplies from Ukraine are usually shaped by demand from the EU, along with deliveries to target places in Asia, primarily to the Middle East (Turkey). While sales to countries CIS declined, demand from buyers from Africa increased, a supply to Egypt in the season 2023/2024, exceeded 1 million ton – the most in history. Ukraine places.is just behind Russia in terms of production soy among countries CIS and according to forecasts IGC in the season 2024/2025 produces its 6,1 million tons, which stands for an increase of 18 percent. in compared with the previous year.
While the domestic market was initially the main factor stimulating the growth of crops, there was a marked increase in the last decade of exports. Supported by the departure from cereals in the idea of substantially improved profitability, the crop area particularly increased in
the season 2024/2025.
Climate will influence on increased production
Climatologists have noted, that changing climate may positively affect production of
soy in Russia, especially in the eastern regions and parts of Ukraine in coming years, because warming can
open
new areas for crop and potentially increase yields.
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Soybeans: in Europe expected is a growth of-crops by 10 percent.
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Russia plans to increase the area
of seeded plants leaf
.