Import duties on Russian linseed will hit Belgian processors heavily

Published Apr 11, 2024

Tridge summary

Europe, which processes 700,000 tons of linseed annually, relies heavily on imports, with 85% coming from Russia. The European Commission is contemplating a 50% import tax on Russian linseed as a sanction for the war in Ukraine, a move that could significantly affect the cost of linseed oil and flakes. This is of particular concern in Belgium, where four family businesses that process half of Europe's linseed could face rising production costs. The potential import tax poses a challenge for these companies in terms of passing increased costs onto consumers, highlighting the broader economic implications of geopolitical tensions.

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

Original content

Every year, 700,000 tons of linseed are processed into oil and flakes in Europe. Only 15% comes from European cultivation, the rest is imported. 500,000 tons of linseed are imported from Russia every year. The European Commission wants to introduce a 50% import tax on the import of Russian linseed, as an additional sanction due to the war in Ukraine. Half of the linseed in Europe is processed by four Belgian family businesses, with a combined turnover of 300 million euros. This concerns the companies Vandeputte in Mouscron, Scaldis in Ruien, Linagro in Lichtervelde and Braet in Ooigem. Together they have 300 employees and a balance sheet total of approximately 250 million euros. Until 2009, Canada was an important exporter for Europe, but when the linseed was found to contain traces of genetically modified organisms banned in Europe, this supply flow fell to approximately 100,000 tonnes. The remaining imports of 500,000 tons will come from Russia or Kazakhstan. The latter country ...

Source: Agri Holland