Ukraine will start production of soy protein concentrate: why it is important
15 May 2025 10:56
Astarta-Kyiv Agro-Industrial Holding and the International Finance Corporation (IFC) have signed a $40 million agreement that will help create new jobs, increase agricultural productivity and stimulate economic growth. This was reported by the Ministry of Agrarian Policy and Food of Ukraine, "Komersant Ukrainian" reports.
Funds in the amount of $40 million will be used to build the first soy protein concentrate plant in Ukraine.
The financing package includes a $27 million loan from the International Finance Corporation’s own account and a $13 million concessional loan from the Dutch government. IFC’s financing is backed by guarantees from the European Commission’s Investment Program for Ukraine and the Dutch government in support of IFC’s Economic Sustainability Program for Ukraine.
What is the expected impact of this investment?
The International Finance Corporation estimates that this investment will generate $680 million in foreign exchange earnings annually, provide $116.5 million in economic contributions, and create about 3,000 direct and indirect jobs through direct and indirect impacts on the economy.
The project will support farmers by expanding the supplier base and increasing market purchases.
Why soy protein concentrate production is important
Ukraine is one of the leading agricultural producers, but its exports are still heavily dependent on commodities, particularly soybeans, which are vulnerable to fluctuations in global prices.
Therefore, it is crucial for the country’s long-term development to expand exports of high value-added products such as soy protein concentrate. And Astarta is the first company in Ukraine to launch its production.
This product is an environmentally friendly and sustainable alternative to fishmeal used in European aquaculture. With the launch of this plant, Ukraine will have sufficient prerequisites to meet the growing global demand for such products.
The plant will also produce soy molasses, a by-product of processing that will be used for the needs of the company’s biogas plants.
This is not the only project of Astarta and IFC
The International Finance Corporation, in partnership with the Czech government, will support Astarta in conducting a market study and feasibility of feed production in Ukraine, as well as provide consultations to local communities, youth and older workers, and facilitate the reintegration of veterans.
The goal of the market research is to build a more resilient workforce and healthier communities, which is critical given the shortage of human capital and skilled workers in Ukraine since the start of the full-scale invasion.
As a reminder, the International Finance Corporation (IFC), a member of the World Bank Group, is the world’s largest development institution focused on the private sector in emerging markets. It operates in more than 100 countries.
“Astarta is a vertically integrated agro-industrial holding in Ukraine, a publicly traded European company that conducts socially responsible business and produces food products with a focus on global markets. Its core business is concentrated in crop production, sugar industry, dairy farming, soybean processing, grain logistics, and bioenergy.
