Soybean - oilseed of the future!
The second international conference "Ukrainian soybean market - 2014", organized by APK-Inform Agency, took place in South Palmira on shores of the Black Sea in Odessa.
Trade House Protein-Production LLC, which is the part of the industrial group Creative, became the General sponsor of the conference. Also, the Group of Companies Lumex and Buhler AG were sponsors of the conference.
The event is provided under support of such industry associations as Ukroliyaprom, Ukrainian association of soybean producers and processors, Seed association of Ukraine.
Despite the current difficult period that Ukraine is facing, as well as the economy of the country and the agricultural sector in particular, nearly 100 delegates from eight countries, gathered at the event to share its common experiences and discuss the business strategy in the current circumstances.
It is worth noting that despite the focused specialization of the conference, the number of types of companies which participated in the event, continues increasing compared with previous years. Thus, the list of conference participants included soybean producers and processors, producers and consumers of extruded soybeans, producers of feed mill commodities, the companies engaged in product certification, representatives of trader, surveyor, freight-forwarding companies, representatives of industry associations and scientific-research institutes.
It should be noted that all speeches during the conference aroused great interest among the participants of the event. Speakers' presentations focused on the analysis of the current situation and medium-term forecasts of development of the world and Ukrainian soybean markets, analysis of the main factors influencing the Ukrainian market of soybeans and by-products, and the characteristics of soybean growing, harvesting, storing and analysis. It is important to note that within frames of the conference the participants listened to presentations ofhighly-skilled speakers, which allowed tracing the entire production chain of soybeans - planting, ripening, harvesting, storing, qualitative analysis of beans for processing, etc.
Viktor Timchenko, President of the Ukrainian association of soybean producers and processors, started the main day of the conference "Ukrainian soybean market - 2014" with his speech.
In the period of 2003-2013 the production volumes of soybeans in Ukraine increased in over 10 times - from 231.9 thsd tonnes, to 2.763 mln tonnes, stressed the speaker. At the same time, he noted that both expansion of the planted areas under the oilseed (from 189.6 thsd ha in 2003, to 1.35 mln ha in 2013), and growing of its yield (from 1.22 t/ha, to 2.05 t/ha), caused the reporting increase of the harvest volumes. According to the expert, the trend will continue in the coming years. In 2014 Ukraine plans to harvest nearly 3.46 mln tonnes of soybeans throughout the areas of 1.68 mln ha, and reach the average yield of 2.06 t/ha. But while talking about the long-term forecasts, there is every reason to expect that by 2017 the production volumes of the oilseed in Ukraine will increase to 4.3 mln tonnes, the harvested areas - 2 mln ha, and the yield – 2.16 t/ha, summed V.Timchenko. The speaker stressed attention on possible imposition of the export duties on soybeans, and consequences of such action for the industry. According to him, imposition of the export duties on soybeans will lead to lowering of the prices on the domestic market, which in turn will reduce the interest of agricultural producers in the oilseed production. To date soybeans prices in Ukraine are high enough, which is quite attractive for agrarians. In terms of increasing of the export demand for the oilseed, the prices will fall, leading to its lack of competitiveness on the global market, added the expert.
Also, the presentation of Evgeniy Scherbak, Director of soybean direction of Creative Group, was quite interesting and informative. To date, production and processing of soybeans is the most dynamically developing business in Ukraine, explained the expert. A number of factors contribute to development of the reporting industry, including the good agro-climatic conditions assisting to achievement of high production volumes of soybeans in Ukraine, the high export potential the Ukrainian oilseed and its by-products, and the strong demand for the oilseed on the domestic market, said E.Scherbak. At the same time, E.Scherbak said that it is required to increase the effectiveness of both agricultural technologies and production processes, to receive top-up margin on the domestic and foreign markets.
Maxim Mayarchuk, Director of production automation department of the corporation Svarog West Group, reported on soybean as the oilseed of the future during his speech. In 2014 the soybean yield indices in enterprises of Svarog West Group are expected to vary within 3.5-3.7 t/ha, which is 2 times higher compared with the expected average rate in Ukraine (nearly 2 t/ha). According to him, usage of modern technologies in production of the oilseed made possible achievement of such high rates. In particular, the company uses high-quality seeds, which are treated at the seed plant of Svarog West Group, which allows increasing soybean yield by 20%. At the same time, the purity level of the used seeds totals 99.9%, said the expert. In addition, usage of the technology of diversified fertilizer application allows increasing the oilseed yield by 4.66%. The company is closely monitoring the transportation route of the harvested crop from fields to the granaries, which assists reducing the losses. According to M.Mayarchuk, the company plans to introduce the concept of "online-field", which will allow monitoring the crops areas, and effectively applying the required plant protecting agents and fertilizers depending on the phase of development. Also, Svarog West Group plans to found its own network of meteorological stations, and actively use drone aircraft to analyze the condition of crops and receive more detailed information.
Randall J. Hager, Agricultural Attache of the US Embassy in Ukraine (USDA), reported on the current trends on the world market of soybeans and short-term forecasts for the market. In 2014/15 MY the world soybean market will again face increasing of production volumes – in the new season the oilseed harvest may reach 300 mln tonnes, as opposed to 283.8 mln tonnes in the previous season. In the new season the USDA is waiting for the growth of all key indicators in the soybean segment: production, consumption, exports and ending stocks, said the expert. It will be the year of new records. R.Hager paid special attention to Ukraine and its perspectives on the global market of soybeans.
The sector of soybeans in Ukraine continues steadily developing. During 5 recent years the Ukrainian oilseed production volumes and its supply on the world market increased in over 2 times. The USDA forecasts growing of the oilseed production in the country in 2014/15 MY by 0.5 mln tonnes, compared with the previous season - to 3.25 mln tonnes. The volume of exports may reach 1.9 mln tonnes (1.7 mln tonnes), said the expert.
Elena Karasik, oilseed analyst of APK-Inform Agency, reported on the current condition of the Russian soybean market and its prospects. In 2014 the soybean planted areas in Russia will reach the record index of 1.72 mln ha, which exceeds the last year record by 12% (up 180 thsd ha). Taking into account the high interest of agricultural producers in cultivation of soybeans, the increase of demand for the oilseed and its by-products on both domestic and export markets, in 2014 Russian agrarians will significantly increase soybean planted areas, said the expert. Also, she added that in terms of increasing of the share of the oilseed planted areas, the share of soybeans in the general structure of plantings of all oilseeds in Russia will increase to 17% in 2014. E.Karasik noted that according to APK-Inform estimations, in 2014/15 MY the total supply of Russian soybeans is forecasted at 3.3 mln tonnes.
All conference participants estimated the high level of presentation and professionalism of the expert - Suphan Akanil, Partner of Promar Agricultural Commodity Trading. To date Turkey is the perspective direction for the supply of Ukrainian soybeans, as the demand for the oilseed by Turkish mixed fodder enterprises continues growing, and the production volumes of forages in the country annually increase by 7%. Turkey imports large-scale volumes of soybeans. Thus, in 2013 the oilseed supply to the country totaled 1.1 mln tonnes, as opposed to 1.2 mln tonnes, imported in the previous year, said the expert. At the same time, he noted that Ukraine is the third largest exporter of the oilseed to Turkey, the country covers 16% of the general import volumes of the oilseed. To date Ukrainian soybean is a quite attractive crop for Turkey due to improvement of its qualitative indices: reducing of the moisture content to 10-11% against previous 14-15%, improved protein content - to 31-34% (26-28%), and increasing of oil content to 19%, added S.Akanil. Also, the expert noted that the low cost of freight and more convenient logistics compared with the imports from the countries of North and South America, are the undoubted advantages of Ukrainian soybeans in Turkey.
Vladimir Pischolka, Deputy Director of the department of livestock of the Ministry of Agrarian Policy and Food of Ukraine, declared on the role and importance of extruded soybeans, soybean meal for poultry and livestock industries. In addition, the expert reported on the strategy of development of the livestock industry.
During her speech at the conference reported about the rapid analysis of soybeans and its by-products at various stages of the technologic process.
On behalf of APK-Inform team, I would like to thank everyone who participated in the conference event. I have special thanks to the partners and sponsors who assisted in organizing the event. I am sure that the event was effective and useful for all segments of the Ukrainian soybean market.
Anna Platonova, APK-Inform
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