The case of oil flax: Is it profitable to grow this crop in Russia?

Published May 31, 2023

Tridge summary

Russia's production of oilseed flax has seen a significant increase, surpassing 1.4 million tons in 2021 and reaching over 1.7 million tons in the 2022/23 season, with the area under cultivation expanding to 2.1 million hectares. Despite this growth, there are concerns about a potential decline in production for the 2023 harvest due to an oversaturated market, as prices have dropped significantly. However, the Oil and Fat Union of Russia anticipates a 15% increase in production for the 2023/24 season, alongside a 1.5-fold rise in processing volumes. Russia has seen a surge in flax seed and linseed oil exports, with China being the primary buyer. The federal center for the development of exports of agricultural products reported a 46% increase in flax seed deliveries and a 31% increase in linseed oil exports in 2022.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The production of oilseed flax in the Russian Federation has been growing in recent years: in 2021, it exceeded 1 million tons for the first time. The cultivation of flax looked interesting, taking into account the duties on the main oilseeds - sunflower, rapeseed and soybeans. Nevertheless, in the short term, not all experts expect a continued increase in areas and production volumes. Pole.rf learned from farms, industry associations and analysts what conditions will support interest in the production of oil flax and whether the Russian Federation will retain its leading position as an exporter. Area dynamics According to Rosstat, oil flax production in Russia in 2021 amounted to a record 1.4 million tons, while a year earlier the figure was at the level of 0.87 million tons and was also a record at that time. Last year, according to the Institute for Agricultural Market Studies (IKAR) and the Oil and Fat Union of Russia (MZhSR), the figure even exceeded 1.7 million tons. The ...
Source: Oilworld

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