Ukraine soybean meal targets the European market amid intense competition from South America

Ukraine soybean meal exporters are aiming to expand their presence in European markets, but they face significant challenges due to strong competition from major South American producers like Brazil and Argentina, particularly in terms of pricing and plentiful soybean supply, Christina Serebriakova, CEO at ASAP Agri & Broker at Atria Brokers said.

Traditional destinations for Ukraine-origin soybean meals are Egypt, Turkey, Poland, and Hungary, but in December 2024, Ukraine made its first shipment of a handy-sized vessel, delivering 27,500 mt of soybean meal to Spain. This was followed by a shipment of 27,400 mt of soybean meal to France in January. In February, an additional 25,000 MT of soybean meal was shipped to Spain, according to Atria Brokers data.

Ukraine's soybean meal exports reached 96,000 mt in December, the highest monthly shipment since May 2019. In total, Ukraine exported about 278,000 mt of soybean meal from September to December of the marketing year 2024/25, up 12% compared to the same period of MY 2023/24.

The rise in Ukraine's soybean meal exports has been driven by robust demand from the EU. Ukraine has increased soybean crushing capacity, as this has become more economically appealing for processing companies this season.

"Ukraine soybean meal is looking for a new home in Europe, but this is difficult for crush plants who need to discount compared to the previous season due to higher soy crush volumes," Serebriakova said. "Soybean meal from South America often costs less than Ukraine-origin soybean meal in the EU."

Offers for South American soybean meal (48% protein content) CIF Netherlands were around $379/mt on Feb. 12.

The EU is the biggest importer of soybean meal and the second largest importer of soybeans behind China. Typically, most of the soybean meal in the EU comes from Argentina, the biggest exporter, and Brazil.

Iani Chiaia, president of the Romania Feed Manufacturers Association, said Ukraine is learning fast to produce quality and efficient soybean meal.

"In the short term, Ukraine is having difficulties in creating export channels, building reputation, be cost-efficient," he said. "In the long term, they will improve, and they might get a market share; however, the geopolitics might not allow Ukraine to develop as they wish, and port access will be crucial."