Linseed production in Ukraine is prone to substantial fluctuation, similar to other niche crops that are more dependent on their production margins.
So, following a record season of 2016/17, when more than 90 KMT of linseed was harvested due to favorable weather conditions, the 2017/18 season saw a drop in all indicators: the planted area shrank by almost 31%, yield decreased by 27.4%. As a result, the crop fell by half, to a mere 45.5 KMT against a record 92 KMT in 2016/17. It is believed that growth of the linseed market in Ukraine is curbed by a 10% export tax on this commodity.
Linseed has been and remains an export-oriented crop in Ukraine. The linseed export market’s potential depends on its production from season to season. Although linseed is mostly exported, the 2017/18 season saw some shift towards its processing in Ukraine, reports UkrAgroConsult.
The current 2018/19 season will witness a further decrease in the linseed crop by 10-15%, according to preliminary estimates. This will pull down both exports and domestic processing.
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