TOP-10 of Ukrainian companies-producers of soybean by-products in 2016/17 MY

APK-Inform Agency presents the TOP-10 of Ukrainian companies-producers of soybean by-products, which became the leaders during 7 months of the current season. APK-Inform analysts formed the rating following the data provided by companies on their production volumes in September-March period of 2016/17 MY.

APK-Inform reduced the forecast of soybean processing in the current season by 13% to 1 mln tonnes (1.14 mln tonnes last season), due to significant increasing of soybean export volumes, and unfavourable price environment on the soybean meal/cake market, in terms of rise in prices for oilseed raw materials, which also caused low marginality of soybean processing. Thus, during seven months of the season-2016/17 the processing volumes of soybeans totaled nearly 618.2 thsd tonnes, down 7% compared with September-March last MY.

In the reporting period of 2016/17 MY, Ukrainian companies-processors reduced the production of soybean by-products, in particular soybean meal/cake and oil - down 9% compared with the same period last season. According to APK-Inform figures, during seven months of the current season the production of soybean oil in Ukraine reached 100.7 thsd tonnes, soybean meal/cake - 457.5 thsd tonnes.

For the third consecutive season, Globino soybean processing plant took the first position in the rating of soybean meal and oil producers. The plant is a part of Astarta-Kiev Holding. In September-March period of 2016/17 MY, the company produced 23.6 thsd tonnes of soybean oil and 93.6 thsd tonnes of soybean meal. India, China, Saudi Arabia, Malaysia, Ethiopia and Poland became the main importers of soybean oil. Also, the company provided major shipments of soybean meal to Hungary, Turkey, France, Moldova, Turkmenistan, Georgia and Poland.

Astarta is a vertically integrated agro-industrial holding specializing in sugar and agricultural production, which was founded in 1993. Its agricultural business focuses primarily on the cultivation of sugar  beet, grains and oilseeds, the production of sugar and related products  (molasses and granulated beet pulp), and milk production. Globino soybean processing plant (Globino, Poltava oblast) was put into operation in early 2014. The nameplate capacities of soybean processing total 700 tonnes/day. The plant produces high-protein meal, soybean hydrated oil and soybean peeling.

During seven months of the current season, Katerynopilsky Elevator moved from the third position to the second one by increasing its soybean processing volumes. In September-March of 2016/17 MY, the company produced 19.4 thsd tonnes of soybean oil and 78.5 thsd tonnes of soybean meal. In the first half of the current season, the company significantly expanded its sales geography of soybean oil, and realized most export shipments to India, China, Saudi Arabia, Bangladesh, Poland, Vietnam, Lebanon and Yemen. According to company specialists, poultry enterprises of the holding usually consume nearly 50% of soybean meal, produced by Katerynopilsky Elevator. The company sells all remaining volumes on both domestic and foreign markets. In the reporting period, Lebanon, Georgia, Moldova, Lithuania and Poland imported soybean meal from the company.

Mironivsky Hliboproduct (MHP) is a vertically integrated company, founded in 1998. MHP is an undisputed leader on the Ukrainian market of chicken meat. The agricultural holding unites the production capacities of the whole meat production chain, from cultivation and production of forage crops, hatching eggs, cattle and poultry breeding, to processing and selling of finished products. Katerynopilsky Elevator joined the holding strcuture in 2004. In 2015, the first oil extraction plant in MHP ensuring all needs of the  holding company in soybean meal  required to produce the feeds, was put in operation. Its nameplate soybean processing capacities reached 1000 tonnes/day.

In the reporting period, the company PromTechAgroTorg (formerly known as Systema) took the third position in the rating of companies-producers of soybean meal/cake. Its production volumes reached 35.5 thsd tonnes of soybean cake. The company provided almost unchanged production volumes, but managed to rise from the fifth position to the third one, due to reduction of soybean processing volumes by other large-scale companies. The company mainly sells soybean cake on the domestic market, and exports nearly 20% of the product to Turkey.

At the same time, the company took the 5th position in the rating of soybean oil producers, due to its oilseed processing technologies at the oil-pressing plant. In September-March of 2016/17 MY, the production of soybean oil reached 5.5 thsd tonnes. The company exported most volumes of soybean oil to Poland.

PromTechAgroTorg is a soybean processing plant in Zaporizhia. The production volumes of finished goods (soybean oil and cake) total more than 350 tonnes/day. The company has its own facilities to clean, dry and store soybeans.

Pology Oil Extraction Plant took the fourth position in the rating of companies-producers of soybean meal, and the third position as soybean oil producer in Ukraine. Also, in the same period of 2015/16 MY the company took the 9th and 8th positions in the same rating. During seven months of the current season, the production of soybean meal and soybean oil totaled 32 thsd tonnes and 7.9 thsd tonnes, respectively, up nearly 2.5 times compared with the same period last season. In the reporting period, the company mainly shipped soybean meal to Georgia, France, Azerbaijan, Lebanon, as well as Belarus (Zaporizhia oblast was banned for any shipments after the outbreak of African swine fever in the beginning of March 2017).

The company exported soybean oil to Poland, Bangladesh, Saudi Arabia, India, the United Arab Emirates, China, Belarus, Madagascar and Lithuania.

Pology Oil Extraction Plant is a technology-enabled enterprise with a complete production cycle. The company used modern equipment and environmentally friendly raw materials. To date, the company represents an integrated complex of production and ancillary departments that process, or support processing of, sunflower seed, soybeans and rapeseed. The nameplate processing capacities of soybeans total 600 tonnes/day.

Oliyar took the fifth position in the TOP-10 of soybean processing companies, and moved one position down compared with the previous year. It is worth noting that the company uses soybean and soybean cake as raw materials for production of soybean meal. In September-March of the season-2016/17, the company produced 7 thsd tonnes of soybean oil and 29.2 thsd tonnes of soybean meal. The enterprise usually processes several various oilseeds, and the processing period for soybeans in the current season totals four months only (January-April). Poland, Moldova and Belarus purchased soybean meal from the company. Soybean oil volumes were supplied to Poland, India and the Netherlands.

The company Oliyar is one of the leading producers of vegetable oils in Ukraine. It was founded in 2003. In 2013, the company launched a new oil extraction plant for processing of rapeseed and soybeans. To date, it is a large-scale enterprise, which includes refining and deodorization shops. The plant has an elevator for storage of oilseeds at 43`000 m³. The maximum processing capacities of the extraction plant total 800 tonnes/day for soybeans, 1000 tonnes/day for rapeseed, and 1200 tonnes/day for sunflower seed.

Thegra Ukraine LTD took the sixth position. The company produces soybean cake, and in the reporting period the volumes totaled 24.2 thsd tonnes. Thegra Ukraine mainly shipped the product on the domestic market, and supplied some volumes to Lithuania. In the TOP-10 of soybean oil producers, the company took the sixth position with production volumes at 3.7 thsd tonnes. The company exported soybean oil to Poland, Lithuania and Belarus.

Thegra Ukraine LTD is a daughter of Closed Joint-Stock Company Theeuwes Holding B.V. (Netherlands), which was founded in 1900.

In 2007, the company launched its own processing plant - Gaysin affiliate DC Thegra Ukraine LTD opened in Vinnytsia oblast with soybean processing capacities at 210 tonnes/day.

Vidrodzhennya took the seventh position among companies-producers of soybean meal/cake, with the production volumes at 14 thsd tonnes. It is worth noting that last season the company took the tenth position in the rating. In the reporting period, the company mainly supplied soybean cake on the domestic market, as well as shipped some small-scale volumes to Poland. According to Vidrodzhennya specialists, the product range includes non-GM soybean cake, which would expand the export shipments of the company.

In September-March of 2016/17 MY, the production of soybean oil reached 2.6 thsd tonnes, which moved the company to the TOP-10 of soybean oil producers in the Ukraine, to 9th position. The company sold all volumes of produced soybean oil to Poland.

The company Vidrodzhennya (Zhytomyr oblast), which was founded in 2002, works in the segment of soybean processing at soybean oil and cake. The processing capacities of soybeans total 100 tonnes/day. The production of soybean oil totals 15.5 tonnes/day, and soybean cake - 84 tonnes/day.

Soybean processing plant of Protein Production (Greenstone) took the eighth position in the rating of companies leaders of soybean meal/cake production, due to a significant decrease in soybeans processing (down 78%). In September-March of 2016/17 MY, the company produced 3.6 thsd tonnes of soybean oil, and 13 thsd tonnes of soybean meal. The company realized major export shipments of soybean meal to Georgia, Lebanon, and Turkey, and soybean oil was - Poland, China and South Korea.

The company Protein Production is an advanced soybean processing company, which products cover both domestic market (20% of sales) and foreign supplies (80%). The processing capacities of soybeans total 800 tonnes/day.

The company Kakhovka Protein Agro took the ninth position in the TOP-10 of Ukrainian soybean meal/cake producers. In September-March of 2016/17 MY, the production of soybean meal reached 11.4 thsd tonnes. Also, in the TOP-10 of soybean oil producers in Ukraine, Kakhovka Protein Agro took the eighth position with the production volumes at 2.9 thsd tonnes.

Kakhovka Protein Agro LLC is one the largest soybean processing complexes in Ukraine. The plant processing capacities total 700 tonnes/day. The own elevator allows storing nearly 40`000 thsd tonnes of soybeans.

Poultry Farm Dniprovskiy closed the TOP-10 rating of soybean meal/cake producers. During seven months of the current season, the production of soybean cake totaled 7.8 thsd tonnes, soybean oil - 0.8 thsd tonnes.  The company uses soybean by-products for own needs only.

The agro-industrial group Dniprovskiy is a managing company on agrarian business. The vertically integrated business structure combines work of enterprises in Dnipropetrovsk and Zaporizhia oblasts. The group mainly operates in the sphere of poultry production, crop cultivation, and processing of technical crops. The company structure includes Poultry Farm Dniprovskiy, located in Nikopol.

About prospects

Despite the fact that in the current season most soybean processing enterprises reduced raw material processing, the forecast for 2017/18 MY on soybean meal/cake and oil production is rather optimistic.

According to APK-Inform analysts, in 2017/18 MY Ukraine will produce 988.5 thsd tonnes of soybean meal/cake (up 30% compared with the season-2016/17), and the exports will reach 470 thsd tonnes, up 62% compared with 2016/17 MY.

In the new season, the production of soybean oil will exceed the figures in 2016/17 MY (160.6 thsd tonnes) by 30%, and total 208.9 thsd tonnes. Taking into account the production forecast and the global market conditions, Ukraine will export nearly 175 thsd tonnes of soybean oil, up 25% compared with the product export estimations for 2016/17 MY.

It is worth noting that construction of new oilseed processing plants in 2017/18 MY can somewhat contribute to the following growth of soybean processing volumes.

Viktoria Zelenaya, oilseed market expert at APK-Inform Agency