Volga Baikal AGRO NEWS Update on the Situation on the Soybean Exports !!!

In 2020 the Russian Federation can increase soybean exports by 70%

Volga Baikal AGRO NEWS Update on the Situation on the Soybean Exports !!!

In 2020 the Russian Federation can increase the soybean exports by 70% – up to 1.5 million tons!

“By the end of 2020, Russia can increase soybean exports by more than 70% compared to the last year – up to 1.5 million tons,” – the press service of the Russian Agricultural Bank told to RIA Novosti.

“The export of soybeans is mainly provided due to the growing demand from China and Belarus, which remain the main consumers of this oilseed crop for Russia. In total, these countries consume more than 70% of all foreign supplies of the Russian soybeans,” – said Andrey Dalnov, head of the RSHB Center of the Industry Expertise.

“In particular, the Chinese market accounts for more than half of the Russian soybean exports: in the current marketing season, from September 2020, the PRC can increase soybean imports by 3% compared to the 2019-2020 season, up to a record level of 100 million tons. Active purchases continue as the pig population recovers, but Russia’s share in the total soybean supply is still within 1%,” – noted A. Dalnov.

“The growth in soybean exports to Belarus is associated with an increase in oilseed processing capacities: some of the processed products are returned to the Russian market in the form of soybean meal and are subsequently used in the production of compound feed for domestic livestock breeders,” – highlighted the press service.

“Meanwhile, in the future, domestic companies can also compete with Belarusian processors. In particular, a number of investment projects have already been announced in the Central Federal District to expand existing and create new soybean processing capacities with a total increase of 2.5-3.8 million tons per year,” – said the bank.

The sown area of soybeans in the Russian Federation is concentrated in the Far Eastern and Central Federal Districts. The absolute leader is the Amur Region (30%), approximately 9% are in the Primorsky Territory, Belgorod and Kursk Regions, 5-6% of crops – in the Voronezh and Tambov Regions, Krasnodar and Altai Territories.

“The need for new projects in raw materials can lead to a redistribution of a part of export volumes in favor of the Russian processors and stimulate further increase in the production of soybeans in the European part of Russia,” – stressed A.Dalnov.

“At the end of 2020, the production of soybeans in Russia is projected to reach 4.2 million tons, 4-5% less than the record last year; this decrease is insignificant and is explained by the reduction in acreage,” – explained the press service of the Russian Agricultural Bank (RSHB).

SOURCE: RIA NOVOSTI