In the south of the Crimean peninsular, in the nature amphitheatre in Yalta, there was held the International Conference "Ukrainian soybean market — 2012", organized by APK-Inform Agency.
The company "Trading House Protein-Production" Ltd. became the general sponsor of the International Conference. Group of Companies "Sodrugestvo”, BRONTO, the Czech company Farmet a. s., Kakhovka Protein Agro Ltd, Delta Wilmar CIS, the engineering and production center Vektor - the sponsors of the conference "Ukrainian soybean market - 2012”.
The event was held under the support of the Ministry of Agrarian Policy and Food of Ukraine, and also the industrial enterprises as the Ukrainian soybean association and "Ukroliyaprom" , the All-Russian Scientific-Research Institute of Fats of the Russian Academy of Agricultural Sciences, the Ukrainian Fat and Oil Research Institute, the National Academy of the Agrarian Sciences of Ukraine. The informational support was provided by the companies: Zerno on-line, OilWorld, Sambros Consulting, issues “Reklama na selo”, “Chim hata bagata”.
According to the legend, Yalta has been founded by Greek sailors who were looking for a safe shore on which to land. And when they saw the one – yalos, they decided to name the landing place by it. In hundred years Cote d'Azur became landing stage for over of 145 participants of the conference from 18 countries. The subject of the event, gathered so many participants, is more than actual: Ukrainian soybean and its by-products market develops fast.
At the same time, despite the narrow subject area of the event, the number of the companies, participated in the Conference, was the essential one, meanwhile the list of the companies was big by the kind of activity. There were the soybean producers and processors, fodder commodities producers and consumers, the representatives of trading, freight-forwarding and surveying companies, representatives of industry associations, scientific-research institutes.
Note the presentation was devoted to the analysis of the current situation and the middle-term forecasts of the development of the world and Ukrainian soybean and by-products market. There were discussed the major features of the soybean and by-products (soybean meal and soybean oil) trade. Within the Conference there was discussion-session devoted to the genetically modified soybean.
Note the most interest was paid on the forecasts of the Ukrainian soybean production in the prospective. Viktor Timchenko, President of the Association “Ukrainian association of soybean producers and processors” stated that in accordance with the forecasts of the association, by 2015 the soybean general production to total 3.52 mln tonnes and by 2017 will reach 4.7 mln tonnes. He defined two top moments for further successful development of the Ukrainian soybean market. First – soybean should be in crop top-list of Ukraine and take its own place in the crop rotation: in Ukraine there should be non less than 25-33% in the structure of the oilseed sowings or 5-15% in the structure of the sowing areas in the oblasts. Second – the issue of the soybean yield and protein content increase, that is important in the soybean production provision. First of all it is genetics and selection (which was noted in details during the seminar).
As Oleg Rudenko, Director of Kakhovka Protein Agro Ltd. noted, as of to date Ukraine takes the top position by the soybean general production all over the European Union and increases the processing volumes, meanwhile the import soybean share is rather small in Ukraine. He noted the current situation is mostly based on the fact that Ukraine is one of the certain range of the countries which did not protect itself from the foreign expansion by duty-free soybean meal imports in the country. At the end of the address the speaker accented the attention on the fact in order to reach the success in the soybean industry work it is necessary: take under the control the issue of the duties presentation on the importing soybean by-products; work-out the rules, which would allow to order, forecast and civilize the Ukrainian soybean market; to systematize the demands to the genetically modified raw-materials and the end commodities; and also everyone who cares about the domestic soybean and by-products market should offer and realize the legislative initiatives to protect the producers and processors of soybean as well.
At the same time Stepan Kapshuk, General Director of the association “Ukroliyaprom” stated in 2012/13 MY in Ukraine the major oilseeds production is forecasted to reach the level of 12.48 mln tonnes. He stated the production increase is provided by soybean (2.6 mln tonnes) and sunflower (8.7 mln tonnes). Rapeseed production will decrease to 1.1-1.2 mln tonnes. During the presentation the speaker noted there is expected the soybean and rapeseed processing volumes growth on the Ukrainian fat-and-oil enterprises in the next season.
In 2011/12 MY soybean world demand, as Mark Andersen, Regional Director of the European division of the ASA-IM stated, exceed the production by 13 mln tonnes. M.Andersen noted the soybean world consumption in the period of 2000-2011 was bullish. If the current trend saves the position, in 10 years the world will need the additional 70 mln tonnes of soybeans which exceeds the expected Brazilian soybean production level in 2012. The expert noted in 2012 the soybean production in Argentina, Brazil and Paraguay to decrease by 17.7 mln tonnes compared to 2011. The long-term forecast of USDA devoted to the China imports of soybean faced the annual purchasing to increase by 32.8 mln tonnes (+59%) in the decade.
All the participants of the conference noted the high level of the presentation and the professionalism of Anderson Galvao, General Director of CELERES.
During the presentation on the international conference Sergei Sokolovskiy, Executive director of "TH Sodruzhestvo" noted in 2011 Russia harvested the record soybean crop – 1.75 mln tonnes. During the recent 5 years soybean production in Russia increased by 3 times, meanwhile the oilseed consumption in the reported period also increased by 3 times – to 2.84 mln tonnes. Soybean market capacity in the Russian Federation, as the speaker stated, will face a double increase in the following 5 years. He noted it is based on the essential cattle-breeding and poultry increase by 2020, the soybean domestic production due to the stable domestic demand, high and predictable level of marginality, the attention on the sided of the government to the soybean market development in the Russian Federation. While talking about the future joining of the Russian Federation to the World Trading Organization Sokolovskiy noted it will cause the soybean meal and rapeseed import duties cancellation from 2013 and the decrease of sun seeds import duty to the level of 2.5%, and also the full cancellation of the soybean import duties by 2016 and its decrease to 6.5% during the following four years on the rapeseed and sun seeds.
Marek Kumpreht, member of the Board of the European Feed Manufacturers' Federation (FEFAC), stated during his presentation on the Conference “Ukrainian soybean market-2012” in Yalta, the European Union faces the high demand on the high-protein raw-materials for feed industry. The expert noted, in 2011 the fodder production in EU-27 countries totaled 150 mln tonnes. At the same time in EU nearly 85-90% of soybeans are produced from genetically modified materials.
While talking about the Turkey as one of the consumers of Ukrainian soybean, Ibrahim Ertekin, Coordinator for Foreign Trade of ALYANS YAG SANAYI VE TICARET LTD. STI noted in 2011 Turkey imported 1.3 mln tonnes of soybean and 520 thsd tonnes of soybean meal. In the period of September 2011 till February 2012 Ukraine supplied to Turkey 55 thsd tonnes of soybean and in 2010/11 MY – 87.9 thsd tonnes. The major suppliers of the stated commodities to Turkey in 2011 were Paraguay (28%), Brazil (25%), UAS (23%), Ukraine (12%), Argentina (10%).I. Ertekin stated in order to save the current share on the Turkish market Ukraine needs to concentrate on the soybean meal exports instead of soybean. He underlined Ukrainian exporters should insist on the soybean quality improvement. He also noted in the first quarter of 2012 soybean meal imports to Turkey increased by three times as opposed to the same period of 2011 – to 318 thsd tonnes. At the same time soybean imports decreased by 20% as opposed to the rate of 2011.
Rather meaningful presentation about the potential of the Ukrainian market of soybean meal taking into account consumer preferences was announced by Konstantin Bugera, General Director of “Trade House Protein-Production" Ltd. The speaker noted the distribution of the produced soybean is the following: the domestic consumption – 0.7 mln tonnes of soybean, exports – 1.5 mln tonnes. The expert noted the soybean meal supplies reach the level of 100 thsd tonnes annually, while 40-50 thsd tonnes of them – imported meal, soybean cake – nearly 200 thsd tonnes annually; full-fat extruded soybean – nearly 200 thsd tonnes annually. The major consumer of the soybean by-products is the feed sector; meanwhile the volume of consumed fodders totals 6.7 mln tonnes annually.
M.Domoroschenkova, Head of Department of production of food vegetable proteins and biotechnologies State Scientific Institution the All-Russian Scientific-Research Institute of Fats of the Russian Academy of Agricultural Sciences stated soybean meal production volumes in Russia faced the essential increase in the recent years. The expert stated in 2011 the oil-extracting enterprises processed over 1.3 mln tonnes of soybean. As it was stated, soybean production in Russia is limited by the climatic and geographic factors. Despite the soybean meal domestic production volumes increase, it still does not satisfy the growing demands of the agriculture. So the cattle-breeding sector depends on the soybean and soybean meal imports. In accordance with the program “Development of the fodders production in the Russian Federation in 2010-2012” the necessity in soybean meal in 2011 was estimated at the level of 3.5 mln tonnes, while satisfied just by 41.5% considering the meal imports. While the Russian enterprises capacities improve, there is still the bullish trend of the soybean imports while soybean meal imports decrease. In 2010-2011 the major suppliers of soybean meal were Argentina, EU, Brazil and USA.
Production stable increase is typical for the Ukrainian soybean oil market, noted Ignatiy Sergienko, Director of "Neo Forte" Ltd. Thus, according to the presented data, soybean oil production from 2009/10 MY to 2011/12 MY increased by 44.3 thsd tonnes (+64%). Meanwhile to date in Ukraine prevails the production of the worm-press oil (in 2011/12 season the country to produce 60.9% of the worm-press oil and 39.1% of extraction oil). The speaker noted the major share of the export is for extraction oil. From 2009/10 MY to 2011/12 MY the soybean exports increased by 25.3 thsd tonnes (+40%). the largest consumer of the Ukrainian soybean oil is Poland, where in 2011 the country supplied 57% from the general exports. The expert stated in the future the soybean oil production will face an increase owing the extraction oil. In the short-term prospects the production capacities of soybean processing and soybean oil production will provide the soybean oil production increase to 211 thsd tonnes annually.
The presentation of Kulik M.F., Head of the department of technology production and use of feed and feed the Institute of Agriculture Podolia of the National Academy of Agrarian Sciences was devoted the current situation and the forecasts of the development of the feed industry.
We would like to note the discussion-session, devoted to generically-modified soybean. The key speakers of the session were Anderson Galvao, Maria Domoroschenkova. The discussion of the issue excited a lot of questions and emotions. Live discussion became the confirmation of the actuality of the stated subject and once again underlined the sharpness of the issue not only for the Ukrainian market but for producers, processors and consumers of the end commodities as well. Note almost every one participated in the discussion of the opinions devoted to the genetically modified soybean in the CIS countries and in the world.
On the second day of the conference there were held the seminars, devoted the technological aspects of the soybean processing, and also the ways of the improvement of the Ukrainian soybean production efficiency considering the market demands. Within the seminars there were announced the presentations devoted the express-analysis of the soybean quality, modern technologies in the process of the oil seeds processing management, soybean processing features, produced in Ukraine. In the second day of the seminar there were announced the presentations devoted the non-trauma technologies of the soil after-harvesting treatment, about the necessity of the control of the soy beans and by-products qualitative parameters, key technological aspects of the soybeans planting defense and other.
On behalf of APK-Inform Agency we would like to thank all the sponsors of the event and also the partners and participants. The stated event became the perfect place for meeting of the specialists of the agrarian industry, uniting all the segments of the Ukrainian soybean market. Each participant received the maximum of the useful and interesting information which will help to work out the strategy of the Ukrainian soybean industry development in the future.
Anna Platonova,
Head of the oilseed department of APK-Inform Agency
