Linseed in Ukraine remains a niche crop, with its production being volatile. Following a peak crop in MY 2016/17 due to record high acreage and yield, the 2019/20 season continued a three-year period of production decline, reports UkrAgroConsult.
The key factors curbing growth of Ukraine’s linseed market remain the same as before:
- the internal one consists in 10% duty on oilseed exports;
- the external one is strengthening positions of Russia and Kazakhstan, which are the world’s key linseed producers.
In MY 2019/20, linseed becomes a still more export-oriented crop. 50% of its 2018/19 harvest was shipped abroad, whereas UkrAgroConsult forecasts this season’s export percentage at above 80%.
Over 62% of this season’s linseed export potential was already realized in the first five months of MY 2019/20.
At the same time, crushers considerably reduced linseed processing, with linseed oil exports heading to an abysmal low.