Egypt became a key importer of Ukrainian soybeans in MY 2016/17

Record gross harvests of soybeans in Ukraine in 2016 as well as the capacity increase in the processing industry provide new opportunities for Ukrainian agricultural producers and traders in export markets.

Main foreign trade directions of Ukrainian soy and processed products in the first three months of the new season are noticeably different from the respective figures for the corresponding period of MY 2015/16.

Thus, in the new season, Egypt became the key external consumer of Ukrainian soy and accounted for more than 25% of export shipments of such production. Turkey, which had a leading position in export shipments in the previous season with purchase volume grater tan 50% of total exports, has dropped to a third position in September-November MY 2016/17 MY.

Since the beginning of MY 2016/17, there was a significant reduction of China”s role as a key foreign consumer of Ukrainian soybean oil. Although the Asian region is still fundamental to Ukrainian exporters of these products, the largest buyer of the new season became Poland, share of which has reached almost 35% in the total export volume.

Soy meal/cake, on the other hand, is almost entirely exported to neighboring or European countries. In the last months of the new season, France became the largest buyer of such production on the external market, while the rest of the five largest importers on the list – geographically bordering countries to Ukraine.

It should be noted that the main direction of export of Ukrainian products in the soy complex could be Asian region and neighboring countries. In our opinion, such geographical structure of foreign trade accords to the latest trends in transformation of trade and economic relations in the world. In favor of such statement also says that Asia is a densely populated region, characterized by a gradual increase in the living standards, and hence an increase in demand for food.