The Grain Union of Kazakhstan estimates that rapeseed production cost in 2018 averaged more than USD 202/MT (excluding VAT) with the annual average selling price in the country at USD 296/MT (excluding VAT).
The profitability of rapeseed production equals 46.5% against 72% for linseed, 50% for barley and 35% for wheat, reports UkrAgroConsult.
Despite stable demand from Kazakh crushers and exporters, the expansion of rape plantings is curbed by the following factors:
- complexity of agronomic practices and the need for additional implements to grow this crop (special seed drills, sprayers etc.);
- the weather factor and binding to a certain agroclimatic zone;
- the lack of equipment and infrastructure for rapeseed drying, cleaning and storage;
- high cost of rape growing (seed, fertilizers, machinery, plant protection products).
Ukraine closed the 2018/19 season with a number of records in the sunflower seed segment.