2025
With the appearance of adapted soybean varieties, the crop's sown areas in Ukraine have grown at a rapid pace — on average they range within 1.6-2 million ha. Today Ukraine is among the ten leading countries by the scale of soybean production.
Soybean belongs to the high-margin and export-oriented crops. About ¾ of Ukrainian seed and soy products is sent abroad. The main consumers of these products are the EU countries, into which the Ukrainian agricultural sector is actively integrating. Farmers grow only conventional (non-GM) soybean. This is especially important to understand in the context of modern agriculture with guaranteed contracting under the corresponding agreements on prices and volumes.
The next vector of sale is GM soy. The pricing policy largely depends on the market players. Namely: last year we had high prices (18-19 thousand UAH/t), while this year, with good harvests in Argentina and Brazil, there is a slump to 17 thousand UAH/t and lower. In addition, traders in Ukraine reduce the price, motivating this by an insufficient amount of protein in the seed, small volumes and so on. They pay from 10 to 16 thousand UAH/t.
The decrease in the soybean price, according to analysts, is caused by the sufficient amount of bean offers on the market and the formed raw-material reserves of processors since the beginning of the season.
Such "swings" in the pricing policy cause the instability of the crop's sown areas from year to year because of the low profitability or its absence at low harvests, which is largely caused by risk (drought in the critical period of growth and development).
High-quality seed material and modern growing technologies have better chances of obtaining stable and high harvests when counteracting harmful objects and unfavourable environmental factors.
A good harvest is the one that is deposited in the soybean producer's account as a substantial profit. How to obtain it?
A considered strategy, tactics and algorithm will ensure successful growing
Every new year becomes ever more difficult for the countryside, but "hard times" we quite often create for ourselves.
The problem is that, without a clear strategy, tactics, algorithm for obtaining the planned harvest, we resort to situational actions that can in no way ensure success. It seems that no one is sitting idle: many bustle about, and as a consequence — a shortfall in the harvest. It is here that the fate becomes hard.
Now let us move from philosophy to realities.
Even before sowing we form a clear strategy, tactics and algorithm of growing soybean. Plan the yield that is materially within your power, calculate according to the technological chart, but at the same time bear in mind: the larger the harvest — the larger the costs of fertilisers and plant protection will be, and so on.
Here the individual capability of the farm should be taken into account, in order to reach the golden mean — a yield and costs that would satisfy you with a corresponding profit.
The tactics and algorithm of growing this crop must be reflected in the technological chart and business plan. Plan your costs consistently by periods (algorithm) and observe technological discipline — only in this way can one move forward.
Calculating the economics of growing soybean
To calculate the economics of growing soybean, the following cost items should be included:
- land rent (varies by region and competition)
- mineral fertilisers (a small cost item compared to other crops)
- crop protection products (varies significantly depending on GM and non-GM varieties and takes from 12 to 17%)
- fuel for tillage, sowing and harvesting
- seed processing (drying is not envisaged with the correct choice of variety)
- general production costs (repair of machinery or equipment)
- administrative costs (labour payment, ensuring the office's operation).
The total minimum sum of direct costs can amount to 6500-7000 UAH per 1 ha. Given the additional costs, we approach the minimum price for 1 t of soybean — 10 thousand UAH. That is, small farmers in such a situation have it that 1 t of soybean seed covers all the costs for 1 ha. Thus, the average costs of growing 1 ha of soybean under intensive technology in the 2024 season amounted to up to 25 thousand UAH, with at the same time a "zero" yield — 1.4 t/ha. Most producers name a figure of up to 16 thousand UAH/ha. Depending on the chosen technology, farms name different figures.
Of all the named items, the largest cost item in the technology is the seed, and often farmers try to economise on it, which is one of the causes of the decrease in yield.
However, one should not forget that plants have certain capabilities. Our task is to find out whether they are sufficient to achieve the goal: obtaining a corresponding level of yield with a guaranteed content of crude protein. And this today (climate change) is very important. Because of the significant deficit of moisture supply in Ukraine, a shift of the maize-soy belt — of the guaranteed growing of this crop — 210-230 km further north has occurred. Where yesterday there were good soybean harvests — today they are 1.5 times smaller. One can give soybean everything necessary, but if the end of July - the first 2 decades of August have a significant moisture deficit (seed filling), we will not obtain a good harvest (small, wrinkled seed and so on). The size of soybean seed significantly affects the level of yield (a direct dependence).
Monitoring the soybean crops during the growing season will give you the opportunity to make a decision about additional technological practices (except for the obligatory ones — insecticides, fungicides and herbicides).
We leave for further consideration only those fields that, according to the strategy, show a yield greater than the minimally economically feasible one. In the case of correct preparation for sowing and care of the plants, and also under favourable weather conditions, one can obtain a generous harvest and have high profits.
Serhii Ivaniuk, agri-technology development manager in the Central region of the company LNZ Group
