Selling ideas for Ukrainian soybeans have weakened in key destinations such as Turkey and Egypt, as cheaper Brazilian origin continues to pressure Black Sea offers.

The situation has been further complicated by a Ukrainian government proposal to introduce a 10% export duty on soybeans and rapeseed starting in 2025, with the rate set to gradually decline to 5% by 2034. While exemptions are planned for agricultural producers exporting their own crop and for cooperatives handling members’ goods, market participants warn of rising uncertainty.

The Ukrainian Agri Council (VAR) strongly opposes the draft measure, arguing it would harm small and medium-sized farmers, depress procurement prices, and violate Ukraine’s commitments under the EU Association Agreement. The association noted that Ukraine already possesses adequate oilseed processing capacity and warned the proposed duty could lower farm profitability and result in reduced acreage for both crops. VAR urged the parliamentary tax policy committee to reject the amendments.

Tetiana Alaverdova, Commercial Director of Ukrprominvest-Agro, told ASAP Agri the timing of the initiative is especially problematic. "It’s not right to make such decisions now, when farmers have already invested and are counting on returns, just weeks before harvest. If exporters who produce their own crops are exempt, that’s a plus — but usually it’s medium and large farms that export directly, so smallholders could suffer."

She added that although supporting domestic processing is important, "we live in different times now — it’s not feasible to simply replicate the policy approach once used to boost sunflower seed crushing."