Europe’s Soy Harvest Faces Uncertain Future as Ukraine Steps In
Drought-Stricken Fields Lead to EU Soybean Shortfall
Europe’s soybean harvest this year fell short of expectations, primarily due to a challenging growing season marked by dry weather, particularly in Romania. The EU-wide average yield reached only 25.7 decitmetric tons per hectare (dt/ha), falling below both last year’s result of 28.3 dt/ha and the long-term average of 28.1 dt/ha.
The situation in Romania was particularly dire, with the drought slashing the soybean harvest by a staggering 44% compared to the previous year. While the cultivation area in Romania had expanded by 10%, this wasn’t enough to offset the impact of the dry conditions, resulting in a harvest of just 171,000 tons.
Hungary also experienced a challenging harvest, managing to produce half as much as in 2023 despite doubling its cultivation area. This suggests a below-average yield, highlighting the difficulty faced by farmers across the region.
Italy Remains Top Soybean Producer, But Production Dips
Italy, the leading soybean producer in the EU, saw its harvest decline by almost 5%. Farmers brought in approximately 1 million tons, down from 1.05 million tons in the previous year. This reduction comes despite a smaller decrease in cultivated areas compared to those seen in other European countries.
Despite these challenges, Europe’s overall soybean supply received a significant boost from Ukraine, a key player in the global soybean market.
Ukraine’s Record Harvest Fills European Void
The Donau Soja association, a leading European soybean organization committed to sustainable farming practices, reported a record-breaking soybean harvest across Europe.
More than 13 million tons were produced this year, marking a significant increase from the 12 million tons produced in 2022.
Susanne Fromwald, Secretary General of Donau Soja, highlighted the crucial role Ukraine played in lifting the European harvest. “The strong harvest in Ukraine helped to compensate for the losses caused by extreme weather conditions in the EU and parts of southeastern Europe.”
Fromwald said more than 6 million tons of soybeans were estimated to have been produced in Ukraine alone.
While Donau Soja’s sustainable farming principles ensure the organization’s soybeans are environmentally responsible and GMO-free, Fromwald emphasized they don’t compete unfairly with EU farmers. “Swedish and European soybeans are produced under the same strict standards. Certified Ukrainian and EU soybeans are therefore not ‘cheap competition’.”
“This robust harvest not only supports Europe’s feed industry but also helps the continent become more self-sufficient in soy production,” said Fromwald.
The EU’s current level of soybean self-sufficiency stands at just 8%.
Global Soybean Prices Reflect Mixed Market
Encouraged by the strong harvest, soybean prices on the Chicago Board of Trade, the world’s leading soybean exchange, have also declined. On December 4th, January soybeans were trading at $9.84 per bushel ($343 per metric ton), down 4.5% from their recent high on November 8th, but up almost 2% from their lowest point on November 1st.
## Rapeseed Benefits From Weak Soybean Harvest
The relatively weak soybean harvest in the EU has led to increased demand for rapeseed, another major oilseed crop.
On the Matif exchange in Paris, the February contract for rapeseed – a product used in cooking oil, animal feed and other applications – traded at around 522 euros per ton on December 4th. However, the rapeseed market has experienced significant volatility in recent weeks. After reaching a high of 543 euros per ton on November 18th, the price slipped to 493 euros per ton by November 27th before rebounding.
Further insight into the evolving markets of rapeseed, including the latest prices from exchanges such as Matif, Mannheim product exchange, Hamburg Grain Exchange, and Bavarian commodity exchange can be found through additional research channels.
How has Ukraine’s soybean harvest mitigated the impact of the European drought on overall European soybean production?
## Europe’s Soybeans: A Harvest of Hope from Ukraine
**Interviewer:** Welcome, Susanne. You’ve just released a report highlighting a record-breaking soybean harvest in Europe. That’s good news, especially considering the drought that gripped Europe this year.
**Susanne Fromwald:** Absolutely. We saw a significant decrease in soybean production across much of the EU, especially in countries like Romania and Hungary, where the drought was particularly harsh.
[This information is from the provided text.]
**Interviewer:** So how has Europe compensated for these losses?
**Susanne Fromwald:** This year, Ukraine stepped up in a big way. They had a phenomenal harvest, producing over 6 million tons of soybeans.
This influx helped to balance out the lower European yields and ensure that total European soybean production exceeded 13 million tons. [This information is from the provided text.]
**Interviewer:** That’s remarkable. What does this say about the future of Europe’s soybean industry?
**Susanne Fromwald**: It underscores the crucial role Ukraine plays in the market.
While Europe strives to be self-sufficient in soy production, this year clearly shows that global interdependence is vital to navigating unpredictable weather patterns.
**Interviewer:** Thank you, Susanne. This certainly offers a ray of hope for Europe’s soybean sector.
