Russia’s Fat-and-Oil Union backs reallocation of crop areas


The Fat-and-Oil Union of Russia proposes revising the crop production priorities to replace part of wheat plantings with oil crops, the Union’s website says.

 “The relevant ministry has announced testing of the ‘Effective Hectare’ project, under which the farmland utilization efficiency will become a key indicator for the territories from 2021 on. Special attention will be paid to the cropping pattern. We propose to optimize it by replacing wheat with oil crops,” Fat-and-Oil Union COO Mikhail Maltsev commented on the situation.

In the opinion of the Fat-and-Oil Union of Russia, the pressure of abundant grain carryovers can be eased by reducing the wheat acreage to 20% and sowing oil crops instead. The more so as the relevant ministry wants growers to expand oilseed areas by up to 700 Th ha annually.

The Fat-and-Oil Union of Russia points out that the replacement with oil crops will ultimately provide higher margins for the entire sector, because growing oilseeds is one and a half times more profitable than grain cultivation. In addition, the allocation of planted areas will decrease the load on infrastructure facilities. Apart from the above, domestic intermediate processing plants are still in urgent need for oilseeds: the utilization ratio of oil extractors is below 70%. Once the oilseed portion expands, it will be possible to raise the market of intermediary and high-grade processing and then increase the export share of these products.

As a reminder, it is planned to optimize oilseed areas this year.  So, the sunflower planted acreage is expected to shrink in favor of soya and rape.



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