Canada no longer controls the global oil flax market

Published 2023년 1월 23일

Tridge summary

Canadian flax producers are facing significant market challenges, with key markets in China and the European Union no longer showing interest, leaving the US as the sole major buyer. This shift is due to increased production in other countries like Russia and Kazakhstan, which has resulted in a significant decrease in Canadian flax exports. Despite the quality of Canadian flax, its price competitiveness remains a concern due to cheaper supplies from the Black Sea region. Production estimates for the 2022-2023 marketing year show Canada producing about 474,000 tons of flax, while Russia and Kazakhstan produce 1.5 million tons and 800 tons, respectively. This shift has led to a significant reduction in flax cultivation in Canada, with an optimistic forecast predicting around 600,000 acres, marking the lowest flax cultivation since the 1950s.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Canadian oilseed flax has lost key markets such as China and the European Union, with only the US remaining a major buyer Chuck Penner, an analyst at LeftField Commodity Research, told Canadian growers during a recent market review workshop, Sean Pratt writes in an article published on the Canadian agricultural portal www.producer.com. “Canadian linen producers need to come to terms with a harsh reality. As much as it hurts me to say it, Canada no longer controls the flax market, the analyst said and gave the facts. - Canada produced about 474,000 tons of flax in the marketing year 2022-2023, Russia increased its crop to 1.5 million tons, Kazakhstan harvested 800 tons. Because Chuck Penner spent part of his early career working at United Grain Growers, where he was assigned to promote Linola, a low-linolenic flax variety, it pained him to spell out the bleak market outlook for the Canadian crop. “So Russia has increased production of flax oilseeds to 1.5 million tons, and ...

Source: Agroxxi