Consumers of Ukrainian linseed will have to reduce their wants


Svetlana Kupreeva oilseed and vegoil market analyst at "UkrAgroConsult"

Linseed production in Ukraine is prone to substantial fluctuation, similar to other niche crops that are more dependent on their production margins.

So, following a record season of 2016/17, when more than 90 KMT of linseed was harvested due to favorable weather conditions, the 2017/18 season saw a drop in all indicators: the planted area shrank by almost 31%, yield decreased by 27.4%. As a result, the crop fell by half, to a mere 45.5 KMT against a record 92 KMT in 2016/17. It is believed that growth of the linseed market in Ukraine is curbed by a 10% export tax on this commodity.

Linseed has been and remains an export-oriented crop in Ukraine. The linseed export market’s potential depends on its production from season to season. Although linseed is mostly exported, the 2017/18 season saw some shift towards its processing in Ukraine, reports UkrAgroConsult.

The current 2018/19 season will witness a further decrease in the linseed crop by 10-15%, according to preliminary estimates. This will pull down both exports and domestic processing.

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

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