Russian oilseed production forecast to rise to 35 MMT by 2024

12.04.2018

Russia may more than double oilseed production to 35 MMT by 2024, the Fat-and-Oil Union forecasts.

The Union’s director Mikhail Maltsev told on a fat-and-oil conference in Moscow last week that the industry development model designed by the Union envisages the potential oilseed crop to reach 35 MMT by 2024. The country harvested 16.5 MMT of oilseeds in 2017.

In particular, growth potential lies in the expansion of oilseed plantings. The latter may expand from the present 12 Ml ha to almost 19 Ml ha by 2024. At the same time, it is projected to increase 4 Ml ha by optimizing available areas due to the introduction of the “efficient hectare” principle, reports UkrAgroConsult.

The Ag Ministry of Russia is introducing a project titled “Efficient Hectare,” under which farmland utilization efficiency will become a key indicator as soon as 2021.

In addition, the Fat-and-Oil Union director believes huge growth potential lies in yield. In his opinion, oilseed yields can be raised by improving seed stock and reclaiming the fields earmarked for soya. So, sunseed yield may rise from 1.53 MT/ha in 2017 to 2.0 MT/ha in 2024, soybean yield from 1.5 MT/ha to 1.74 MT/ha, and rapeseed and linseed yields are predicted to increase from 1.73MT/ha to 1.74 MT/ha, respectively.

These plans enhance the industry’s export potential considerably. While Russia exported one-third of its output of fat-and-oil products last year, it will be able to export three-quarters of their production as soon as 2024.

According to the Union’s presentation, fat-and-oil exports from Russia totaled 5.4 MMT in 2017, and they may reach 15.7 MMT in 2024. The forecast for 2018 exports equals 7.3 MMT.

More detailed information on oilseeds and vegetable oils market in the countries of Black Sea region is available to subscribers for weekly market report "Black Sea Vegoils" by UkrAgroConsult.

 

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