TOP-10 of Ukrainian companies-producers of soybean by-products in 2017/18 MY

APK-Inform Agency presents the TOP-10 of Ukrainian companies-producers of soybean by-products, which became the market leaders for 8 months of the current season, and covered 80% of the market segment. APK-Inform analysts formed the rating following the data provided by companies on their production volumes in September-April period of 2017/18 MY.

In 2017/18 MY, the market sector of soybean processing in Ukraine faced dramatic changes compared with the previous season. First of all, for 8 months of the current season Ukrainian companies increased the processing volumes of soybeans to 845 thsd tonnes (773 thsd tonnes in the previous season), due to some decline of the oilseed export volumes, and the favourable price environment on the market of soybean meal/cake. Also, launching of a new plant by the company Viktor and K and modernization of the existing production lines somewhat increased the processing volumes of Ukrainian soybeans.

At the same time, Ukraine faced some changes in the trading structure of soybean by-products. Due to a significant glut on the global market of vegetable oils in the current season, there was observed some decline of demand for Ukrainian soybean oil, which caused a decline of prices. At the same time, the market increased demand rates for soybean meal, and the prices rose to almost record levels (in May 2018 the bid prices reached 500 USD/t FOB/DAP).

In the current season, Ukraine mainly shipped soybean meal to Belarus, Hungary, Azerbaijan, Georgia, Poland, Libya, Moldova, Romania, Lebanon, Lithuania, Turkey, Turkmenistan, Armenia, Estonia, and Uzbekistan.

The export geography of Ukrainian soybean oil is more extensive (nearly 30 countries), while in the reporting period Poland, China, India, the United Arab Emirates, and Saudi Arabia were the main importers of the Ukrainian product.

For eight months of the current season, LLC Katerynopilsky Elevator moved to the first position by increasing its soybean processing volumes. In September-April of 2017/18 MY, the company produced 32.9 thsd tonnes of soybean oil and 133.9 thsd tonnes of soybean meal. The company manages to keep the leading positions at the expense of the closed production cycle, which also demonstrated a growth in the production of chicken meat. The company supplies soybean oil in flexitanks in CFR/CIF terms.

Mironivsky Hliboproduct (MHP) is a vertically integrated company, founded in 1998. 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 structure 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.

For three seasons in a row, Globino soybean processing plant steadily took the first position in the rating of soybean meal and oil producers. The plant is a part of Astarta-Kiev Holding. Despite the fact that the company increased its production volumes, it took the second position in the current rating. So, in September-April of 2017/18 MY the company produced 27.4 thsd tonnes of soybean oil and 107.7 thsd tonnes of soybean meal.

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 high-quality sugar and related products (molasses and granulated beet pulp), milk and meat production, etc.

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, hydrated soybean oil and soybean peeling.

Pology Oil Extraction Plant took the third position in the rating of companies-producers of soybean meal and oil in Ukraine. For 8 months of the current season, the production volumes of soybean meal and oil totaled 79.9 thsd tonnes and 21.2 thsd tonnes respectively, up more than 2 times compared with the same period last season.

Pology Oil Extraction Plant PJSC is a technology-enabled enterprise with the complete production cycle. 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.

The company Viktor and K took the fourth position in the rating. In early November 2017, the company launched its soybean processing plant (previously the company processed sunflower seed only). Taking into account the fact that the company started processing soybeans not since the beginning of the season, the plant already produced 38.4 thsd tonnes of soybean meal and 8.1 thsd tonnes of soybean oil.

The private enterprise Viktor and K was founded in December 1992. Production of sunflower oil and sauces under the brand Korolivsky Smak is the main business profile of the company.

The processing facilities of sunflower seed and soybeans are located in Kirovohrad oblast, and its daily capacities total 1`500 tonnes and 600 tonnes, respectively.

In the reporting period, the company PromTechAgroTorg took the fifth position in the rating of companies-producers of soybean meal/cake. It is worth noting that last season the company was one of the TOP-3 of leaders. Due to increasing of soybean processing volumes by other companies, it moved to the just fifth position in the current rating.

In September-April period, PromTechAgroTorg slightly reduced its production volumes of soybean meal to 37.4 thsd tonnes (39.9 thsd tonnes in September-April of 2016/17 MY). At the same time, the company took the 6th position in the rating of soybean oil producers, due to oilseed processing technologies at the oil-pressing plant. In September-April of 2017/18 MY, the production of soybean oil reached 6.3 thsd tonnes.

LLC PromTechAgroTorg is a soybean processing plant in Zaporizhia oblast. 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.

Thegra Ukraine LTD still kept its sixth position. The company produces soybean cake, and in the reporting period the volumes totaled 33 thsd tonnes. Thegra Ukraine mainly shipped the product on the domestic market. In the TOP-10 of soybean oil producers, the company took the seventh position with production volumes at 5.2 thsd tonnes.

Thegra Ukraine LTD is a daughter enterprise 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 of Thegra Ukraine LTD in Vinnytsia oblast with soybean processing capacities at 210 tonnes/day.

In 2017/18 MY, the soybean processing plant of Protein Production took the seventh position in the rating of the companies-leaders of soybean meal production. It is worth noting that after the collapse of Creative Group, the company Greenstone worked with soybean processing at the specific plant in Kirovohrad. But since the second half of 2016/17 MY, the company Falcon-Agro started processing soybeans at the plant. In September-April of 2017/18 MY, the company produced 8.5 thsd tonnes of soybean oil, and 31.2 thsd tonnes of soybean meal.

To date, the main activity of Falcon-Agro is the processing of soybeans and production of high-quality soybean oil and meal with the subsequent sale of these products. The nameplate capacities of soybean processing of the plant in Kirovohrad oblast total 800 tonnes/day. Falcon-Agro duly fulfills its obligations under the contracts for the supply of soybean oil and meal to both transnational traders and destination consumers in Europe, Africa, the Middle East and Asia, as well as leads an active sale of soybean meal in Ukraine.

Vidrodzhennya took the eighth position among companies-producers of soybean meal/cake, with the production volumes of soybean cake at 17.2 thsd tonnes. It is worth noting that last season the company took the ninth position in the rating. In the reporting period, the company mainly supplied soybean cake on the domestic market. In September-April of 2017/18 MY, the production of soybean oil reached 3 thsd tonnes, which moved the company to the TOP-10 of soybean oil producers in the Ukraine, to the 10th 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 150 tonnes/day. The production of soybean oil totals 22 tonnes/day, and soybean cake — 125 tonnes/day.

PJSC Vinnitsa oil seed crushing factory of the company VIOIL took the ninth position in the TOP-10 of producers of soybean meal in Ukraine. In September-April of 2017/18 MY, the production of soybean meal reached 16.4 thsd tonnes. Also, in the TOP-10 of soybean oil producers in Ukraine, Vinnitsa oil seed crushing factory took the eighth position with the production volumes at 4.9 thsd tonnes.

The structure of PJSC Vinnitsa oil seed crushing factory includes the oil extraction plant No.1 for oilseeds crushing with the daily capacities at 1`000 tonnes of sunflower seed, or 600 tonnes of rapeseed, or 550 tonnes of soybeans; the oil extraction plant No.2 for oilseeds crushing with the daily capacities at 1`850 tonnes of sunflower seed, or 1`350 tonnes of rapeseed, or 1`100 tonnes of soybeans.

PE Oliyar closed the TOP-10 rating of soybean meal/cake producers. In the current season, the company mainly processed rapeseed and sunflower seed. Only in March-April of 2018, the company started processing soybeans, and produced 13.3 thsd tonnes of soybean meal and 3.5 thsd tonnes of soybean oil.

The company Oliyar was founded 2003, and located in Lviv oblast. The company owns two plants: for refining and deodorizations of oils, and oil extraction plant for oilseeds processing. The maximum processing capacities of the extraction plant total 800 tonnes/day for soybeans, 1`000 tonnes/day for rapeseed, and 1`200 tonnes/day for sunflower seed.

About prospects

According to APK-Inform analysts, Ukraine can reduce the harvest volumes of oilseed crops and its exports, after imposition of the law on cancellation of the VAT refund in soybean exports since September 1, 2018. But in such case, Ukraine will increase the production volumes of soybean meal and oil.

According to APK-Inform figures, in 2018/19 MY Ukraine will produce 1.1 mln tonnes of soybean meal/cake (up 25% compared with the season-2017/18), while the exports will total 460 thsd tonnes, up 31% compared with the similar figures in 2017/18 MY.

The forecast of soybean oil production in a new season totals 225.4 thsd tonnes, up 25%. Taking into account the production forecast and the global market conditions, Ukraine will export nearly 220 thsd tonnes of soybean oil, up 19% compared with the product export estimations for 2017/18 MY.

It is worth noting that construction of new multi-crop processing plants in 2018/19 MY can somewhat contribute to the following growth of soybean processing volumes.

Viktoria Zelenaya, APK-Inform Agency