Soybean deficiency may occur in Russia

Although the production of this crop is only increasing, the construction of a large volume of processing facilities can be a problem.

As of December 21, in the 2020-2021 season. 4.9 million tons of soybeans were harvested. This is 11% more than last season.

However, against this background, several of the largest Russian enterprises are planning to launch additional soybean processing capacities from next year.

In particular, the Sodruzhestvo Group of Companies is going to build a complex in the Kursk region capable of processing up to 1 million tons of soybeans annually; Cherkizovo is nurturing plans to build a facility for processing up to 350 thousand tons of soybean meal in the Lipetsk region. Agroholding Exoil Group is developing another plant for the processing of 1 million tons of soybeans per year.

As you can see, if the capacities grow by such values, then the harvest of 4.9 million tons may no longer be enough to ensure their full load.

In this regard, the Ministry of Agriculture is considering how to increase the production of soybeans within the country at least to 6.5 million tons by 2025.

What happens if there is a shortage of soybeans?


According to standard market laws, demand for it will inevitably rise, and so will prices. Although this will play into the hands of farmers, meat producers are already worried. After all, soybeans are one of the main feed, and the cost of feed is 70% of the cost of meat .

With the rise in price of soybeans, the price tags in the meat departments of stores can change significantly. And even soy meat will not save the situation, because it will also rise in price.

To prevent this, it is planned to take the following measures:

To increase the acreage for soybeans next season. The Ministry of Agriculture announces the following figures: from 3 million hectares to 3.38 million hectares. The regions, however, do not share such grandiose plans and lower the bar to 3.26 million hectares as a maximum.

Save export duty on soybeans . Now it is quite high: 20%, at least $ 100 per ton. This duty will be in effect until August 31 next year and should significantly slow down the «leak» of soybeans from the country. It is planned that instead of 1 million tons, no more than 500 thousand will be exported.

By the way, as Mikhail Maltsev, Executive Director of the Fat and Oil Union of the Russian Federation noted, production facilities for oilseeds have never been fully loaded. And this is one of the reasons why the duty was introduced: in order to process and sell non-raw materials ourselves, and finished products.

However, if nothing is done, the situation can become dire.

Pig breeders have already stated that the rise in the price of feed caused an increase in the cost of pork production by at least 15-20%, and poultry producers also made similar statements.

This means, if the deficit of soybeans in the country cannot be overcome, the price of meat will go up even more.