Flaxseed Oil Shortage Expected Globally
In the next season, global flaxseed oil production may decrease by 17% to only 3 mln tonnes, which will be the weakest in the last five years. This forecast was made by the experts of the analytical agency OilWorld (Germany), UkrAgroConsult reports.
The decline in gross harvest may occur amid a reduction in the area under the crop in key producing countries.
Farmers in North America have lost interest in growing flaxseed due to increased export competition from Russia and Kazakhstan. Thus, in Canada, the acreage under the oilseed decreased by 22% to only 0.25 million hectares, which is the lowest result in more than 20 years, the report says.
However, industry experts expect that the decline in production will be leveled by high transitional flaxseed stocks in China after the record import of oilseeds from the Middle East (1 million tons in August 2022 - July 2023 against 0.5 million tons a year earlier).
At the same time, we note that the deterioration of the global oilseed production prospects in 2023/24 MY together with the limited stocks of old crop (primarily in Russia and Kazakhstan) will create the supply shortage on the global market among the processing companies in the new season, - OilWorld added.
The decline in gross harvest may occur amid a reduction in the area under the crop in key producing countries.
Farmers in North America have lost interest in growing flaxseed due to increased export competition from Russia and Kazakhstan. Thus, in Canada, the acreage under the oilseed decreased by 22% to only 0.25 million hectares, which is the lowest result in more than 20 years, the report says.
However, industry experts expect that the decline in production will be leveled by high transitional flaxseed stocks in China after the record import of oilseeds from the Middle East (1 million tons in August 2022 - July 2023 against 0.5 million tons a year earlier).
At the same time, we note that the deterioration of the global oilseed production prospects in 2023/24 MY together with the limited stocks of old crop (primarily in Russia and Kazakhstan) will create the supply shortage on the global market among the processing companies in the new season, - OilWorld added.