Ukraine needs new markets for soybean oil beyond biofuels

Volodymyr Puhachov, Executive Director of the Danube Soya Association in Eastern Europe, said in his column that Ukraine’s soybean sector should already be preparing to diversify export markets for soybean oil, as long-term demand from the EU biofuel industry is expected to decline.

According to Puhachov, the European Commission’s new Protein Action Plan recognizes Ukraine as a strategic partner in helping diversify the EU’s protein supply. However, he noted that the document remains largely declarative and still views Ukraine primarily as a supplier of raw materials rather than higher value-added products.

He emphasized that processed soybean products are far more dependent on the European market than soybean exports themselves. While more than half of Ukraine’s soybean exports go to Turkey and Egypt, the EU accounts for over 70% of Ukrainian soybean meal exports and 91% of soybean oil exports, making it the key destination for Ukraine’s soybean processing industry.

Puhachov also welcomed the European Parliament’s decision to reject the European Commission’s proposal to classify soybean oil as a high indirect land-use change (high ILUC) feedstock. He said the vote helped prevent a significant decline in soybean prices, although the issue is not yet resolved because the proposal has been returned to the Commission for revision.

In his view, even if restrictions on soybean oil are delayed, Ukrainian producers should already be looking for new end-use markets. The EU’s transport decarbonization strategy is expected to gradually reduce demand for biofuels, while forecasts also point to lower meat production and consumption in Europe, potentially limiting demand for soybean meal as well.

Puhachov also highlighted the importance of complying with the EU’s upcoming EUDR requirements and Ukraine’s new GM legislation. At the same time, he believes soybean prices—driven by competition between exporters and domestic processors—will remain the main factor determining soybean acreage in the next production season.

Tags: Ukraine, soybean oil, EU, soybean meal, biofuel