Ukraine harvested 3.89 million tonnes of soybean from 1.9 million hectares in 2017.

“Soybean margins will decrease almost by half to 25.4% in 2017. Combined with tax innovations, this will make growers less interested in this crop and entail a 200,000 to 300,000 hectare cut in plantings for the 2018 harvest,” the consultancy said in a report, according to Reuters.

Last year, the Ukrainian parliament canceled a VAT refund for exports of oilseeds from Sept 1, 2018, a move which could cause a significant decrease in Ukrainian purchasing prices and prompt growers to reduce sowing area.

Read alsoUkraine wheat crop to fall to four-year low in 2018 - expertsUkraine, which produced only around 120,000 tonnes of soybeans in 2000/01, has boosted its soybean exports to 1.5 million tonnes so far for the 2017/18 season.

The country exported a total of 3.5 million tonnes of oilseeds so far in 2017/18, 52% more than for the same period in the previous crop year, according to Ukrainian state statistics service.