News

E. Jarvis

Aug 16, 2023

World Flax Harvest to Hit 5-Year Low

World Flax Harvest to Hit 5-Year Low

The volume of world harvest of oilseed flax in the coming season may decrease by 17% and amount to only 3 million tons, which will be the weakest indicator for the last five years. This forecast was voiced by experts of the Hamburg-based analytical agency OilWorld (Germany). In their opinion, the decrease in gross harvest will occur against the background of the reduction of sown areas under the crop in key producing countries.

"Agrarians in North American countries have lost interest in growing flax due to increased export competition from Russia and Kazakhstan. Thus, in Canada, the sown area under the oilseed has decreased by 22% - only to 0.25 million hectares, which is the lowest result for more than 20 years," - stated in the materials.

According to experts, flax sowing also decreased in Russia and Kazakhstan, as local farmers switched to the cultivation of more profitable grain and oilseed crops.

However, industry experts expect that the decline in production will be offset by high carryover flax residues in China after record imports of oilseeds from the Celestial Empire (1 million tons in August 2022-July 2023 against 0.5 million tons a year earlier).

Supply deficit

"In parallel, we note that deteriorating prospects for global oilseed production in MY 2023/24 combined with limited stocks of the old crop (primarily in Russia and Kazakhstan) will create a supply deficit in the global market among processors in the new season," OilWorld (Germany) added.
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