In 2025, Ukraine introduced a 10% export duty on rapeseed and soybeans. The measure aimed to boost domestic processing and keep added value in the country.
However, many farmers warned that the duty would primarily harm small and medium producers. From the first months, farmers lost $40–50 per ton at export and had to further lower prices to remain competitive. Over six months, producers lost about $200 million, with the country losing over $1 billion in foreign exchange earnings. Rapeseed exports fell by $400 million, soybeans by $240 million.
The duty was justified by previous success with sunflower, but the markets and logistics for rapeseed and soybeans differ significantly. Processed products from these crops have much smaller markets and require different capacities and export strategies.
The law also granted exceptions for large producers, worsening conditions for small farmers. There was no clear mechanism to confirm producer status, making it practically impossible for small farms to benefit.
In the first month, exports of rapeseed and soybeans dropped by over 50%, with overall agroexports down by 25%. Similar practices in 2017 led to a 21% reduction in soybean planting areas.
Economic policies like these require existing markets, competitive processing, and support for small producers. Without this, such policies mainly hurt farmers and slow sector development.
