Oilseed plantings in Ukraine: what the “VAT games” will lead to

20.12.2017

The current 2017/18 season is in full swing, but the question of prospects for Ukrainian agricultural producers in the new marketing year arises increasingly often. The cropping pattern for the future harvest becomes a hot-button topic not only for market participants, but also for the media environment. Traditionally, UkrAgroConsult presents its estimates and the first tentative figures for the 2018 planting season as a stocking-stuffer gift.

Any grower plans his sowing campaign mostly on the basis of the financial outcome of the previous year and on how expectations for the season’s results came true.

Scientists with the Agrarian Economy Institute expect that, out of all the oilseeds, only rapeseed margin will rise in the 2016/17 season (up 14%), while soybean and sunseed margins will fall by half against MY 2015/16.

However, the factor of tax legislation entered the scene in December, unexpectedly for all market participants. If the new regulation comes into effect from March 2018 it will force growers to seriously think of the cropping pattern for the future harvest.

Full version of the article is available to subscribers for weekly market report “Black Sea Vegoils” and “Online market review” by UkrAgroConsult.

 

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