Ukraine will probably decrease the production of corn this year, as farmers switch to cultivating soybeans which seems to be more profitable, says a recent report from the Ukraine analytical agency, APK-Inform.
The sowing area for corn cultivation over the recent decade increased as well as production. During the same period the sowing area for soybeans increased 4 times, while its production by 6, says Anna Burka an experts from the company.
"Current season could be called a turning point in the further development of the situation in these markets. Given the fact that Ukrainian corn is export-oriented, and there is a surplus of it in the global market, the interest of farmers in the cultivation of maize is steadily reducing" she stated.
"At the same time the Ukrainian soybean market has not only a high export potential which is estimated at 57% or 2.3 million tonnes in 2014/15, but also a high domestic consumption of 26%, or 1 million tonnes, which makes it attractive for a further increase of production" she added.
According to the results from market research conducted by the experts of APK-Inform, about 15% of the surveyed farmers plan to increase the volume of cultivation of soybean crops in the current season, while another 6% - will start its cultivation. At the same time a significant part of the respondents reported that they intend to increase soybean plantings by reducing the sowing area for maize.
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