Oilseed processing in Ukraine has reached its peak in recent years thanks to export duties
Ukraine says export duties on soybeans and rapeseed have boosted domestic processing, pushing capacity use to recent highs. The policy aims to shift away from raw exports toward value-added products, with no plans to extend duties to other crops.
The introduction of export duties on soybeans and rapeseed has had a tangible effect: the utilization of processing capacities has increased to the maximum level in recent years. This is reported by the Ministry of Economy and Agriculture of Ukraine.
“In terms of stimulating processing, the effect is there – and it is measurable. Capacity utilization has increased, oilseed processing is currently at the maximum level in recent years. This indicates that the market has reacted exactly as was laid down in the logic of the norm,” said Oleksiy Sobolev, Minister of Economy, Environment and Agriculture of Ukraine.
According to him, the Ministry of Economy is building a policy where crops grown in Ukraine are more profitable to process domestically than to export raw materials and only then export processed products. This approach is aimed at moving away from the model of a raw material economy.
In 2025, 8 million tons of soybeans and rapeseed were harvested in Ukraine, while in 2021 this figure was 6.4 million tons. Production is growing without additional support programs.
According to Sobolev, there is currently no need for additional stimulation of these crops, and the introduction of similar duties on other agricultural crops is not planned due to the absence of imbalances in the relevant markets.
At the same time, flax, industrial hemp and peas have significant potential for the development of processing. In particular, capacities for the processing of industrial hemp and the production of bioadhesive from peas are being built in industrial parks.
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Source : Ukr Agro Consult
