Permission for the use of GMO soybeans in EU countries reduces prices for non-GM soybeans in Ukraine

The European Commission has authorized the use of genetically modified soybeans in food and animal feed, Feedlot reports, citing a scientific assessment by the European Food Safety Agency (EFSA).

According to the commission, GM soy has undergone a comprehensive and rigorous assessment procedure that ensures a high level of protection of human, animal and environmental health, after which it was allowed to be imported for use in food and animal feed, but not for cultivation in the EU.

The permit is valid for 10 years, and any product derived from such soy is subject to strict EU labeling and traceability rules.

“The European Commission was legally obliged to take a decision on this issue after EU member states failed to obtain a sufficient number of votes either for or against,” the statement said.

Such a decision will sharply reduce the premium for non-GM soybeans, which last season reached $30-50/t compared to GM soybeans.

In 2024/25, the EU increased soybean imports compared to the previous season by 8% to 14.27 million tons, with the share of Brazilian supplies in the volume of imports decreasing from 45.2% to 42.8%, the USA increasing from 40.7% to 41%, and Ukraine increasing from 7.4% to 10.9% or 1.56 million tons.

In Ukraine, export demand prices for non-GM soybeans have decreased by another $5-10/t to $400-410/t or UAH 19,000/t delivered to the port, losing $30-40/t in a month. Export demand prices for GM soybeans remain at UAH 18,000-18,200/t or USD 382-386/t delivered to the ports, as traders need to close contracts.

Soybean exports from Ukraine in the MY 2024/25 amounted to 3.5 million tons (of which 1.56 million tons to the EU), and processing (taking into account the volume of soybean oil exports) reached 2 million tons, so approximately 1 million tons of soybeans remain available, which can be exported or processed by the end of the season.

Processors have been buying almost no non-GM soybeans for over a month, while GMO soybeans are offered at UAH 17,000-17,200/t with delivery to the factory.

Soybean prices in Ukraine remain under pressure from the possible introduction of a 10% export duty. Although on July 7, the Verkhovna Rada Committee on Agrarian and Land Policy rejected the initiative to introduce a duty on soybean and rapeseed exports, the Committee on Finance, Tax and Customs Policy, on the contrary, recommends introducing these duties. Therefore, the issue will be decided during the vote in July or August (recall that during the first vote, the relevant amendments were supported by 200 deputies out of the 226 required).

We believe that it would be better if the deputies took up the legalization of growing GM soybeans in Ukraine, which are already planted in over 70% of the area.

Tags: soybean, Ukraine, EU, prices