The European brown linseed market is under increasing competitive pressure as Russian suppliers have significantly reduced their prices. Despite the competitive offer of Russian linseed at a delivered price of EUR 0.69/kg, Polish goods remain the preferred choice for European buyers. A closer look at the conditions shows that Russian suppliers are unable to meet several key requirements of the European food industry.

Price development on the flaxseed market

At the moment, the offer prices for brown flaxseed from Poland and Russia are relatively close, which is intensifying competition:

• Polish flaxseed (Kazakhstan, post-cleaned in Poland): price ex-Polish station (FCA) at EUR 0.67/kg, with a delivery price for full truck loads (approx. 24,000 kg) of EUR 0.72/kg.
• Russian linseed (99.95% purity): Despite a 10% customs duty, Russian suppliers are offering their goods at a competitive delivery price of EUR 0.69/kg. This price is exerting pressure on the European market, although uncertainties remain regarding other standards.

Packaging standards as a deciding factor

Packaging is one of the main reasons why Polish linseed continues to be preferred. While Russian suppliers offer their goods in 25-kg plastic bags, paper bags are the standard in Europe, especially in the food sector. These are preferred not only for environmental reasons, but also due to food safety requirements. Polish suppliers meet these standards and offer the goods in paper bags, which offers additional organisational and safety advantages.

Lack of certification among Russian suppliers

Another disadvantage of Russian linseed is the lack of important certifications. In the European food industry, standards such as IFS (International Featured Standards), BRC (British Retail Consortium) and FSSC (Global Food Safety Initiative) are essential to ensure compliance with quality and safety requirements. Russian suppliers usually cannot provide these certifications, which is a significant disadvantage for many European customers.

Lack of laboratory analyses for Russian goods

In addition, Russian linseed is not accompanied by comprehensive laboratory analyses confirming the absence of pesticide residues, heavy metals, GMOs or microbiological contamination. European customers would have to organise these tests independently, which could lead to additional costs and delays. Polish suppliers, on the other hand, regularly provide certified laboratory analyses to ensure that the goods meet strict European safety requirements.

Payment terms: a clear advantage for Polish suppliers

Another important point that clearly favours Polish suppliers over Russian ones is the payment terms.

• Russian suppliers often insist on advance payment, which poses a significant risk for European buyers. Customers have to pay the full amount before the goods are shipped, which affects their liquidity and increases their financial risk in the event of delivery delays or problems. Should delivery problems arise – such as delays at the border or quality defects – the customer is left without legal leverage because the payment has already been made in full.
• Polish suppliers offer flexible payment terms, which gives them a significant competitive advantage. Buyers can only pay for the goods after delivery, which not only reduces the financial risk but also increases flexibility in processing. These payment terms provide additional security for European buyers, who can be confident that the goods meet the agreed specifications before payment is due. Should any problems arise upon delivery, these can be resolved before payment, enabling a more trusting business relationship.

This difference in payment terms is a deciding factor for many buyers in the current economic climate, who are keen to avoid uncertainty in supply from Russia due to geo-political tensions.

Customs risks for Russian linseed

Another potential risk to the attractiveness of Russian linseed is the possible increase in the EU tariff. The current tariff of 10 per cent on Russian linseed could be raised to 30 per cent. This tariff change would put significant pressure on Russian suppliers and drive up prices sharply. This would quickly eliminate the current price advantage of Russian goods, and Russian linseed could even become more expensive than Polish alternatives.

Conclusion: Polish suppliers remain competitive

Despite the short-term price advantage of Russian linseed, there are many arguments in favour of Polish suppliers. The higher packaging standards, the required certifications, the comprehensive laboratory analyses and the flexible payment terms offer European customers significantly more security and convenience. The payment terms offered by Polish suppliers considerably reduce the risk for buyers and are a clear advantage over the cash in advance conditions of Russian suppliers. Furthermore, potential tariff increases on Russian products could drive costs even higher, which would influence the market in favour of Polish suppliers. European buyers should therefore continue to rely on proven Polish suppliers to minimise risks while meeting the high standards of the food industry.

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