Kazakhstan significantly increased the production of flaxseed — expert




According to preliminary forecasts of Oil World experts, in 2019/20 MY Kazakhstan will produce the record volumes of flaxseed — nearly 760 thsd tonnes, as opposed to 680 thsd tonnes in 2018/19 MY.

As for flaxseed, in the season-2019/20 Kazakhstan will keep the strong export positions, as well as the significant influence on the global market. For 10 months (September-June) of 2018/19 MY, the exports of flaxseed from Kazakhstan totaled 466.5 thsd tonnes, up one quarter compared with the whole last season. Also, in the nearest future Kazakhstan and China will sign the official protocol on harmonization of phytosanitary requirements for flaxseed exports to China, with accreditation of at least 30 Kazakh enterprises, which will start shipping the oilseeds to the country. Last season, Chinese importers increased their demand for Kazakh flaxseed, and purchased 20.3 thsd tonnes of the oilseed (September-June) through Mongolia. In the current season, Kazakhstan will supply the oilseed through the direct exports, which will have a positive impact on the growth of the export volume, as well as status of Kazakh traders, said the co-founder of the group of companies Severnoe Zerno LLC, expert of the Grain Union of Kazakhstan, Evgeny Karabanov.



It should be noted that Kazakhstan takes the second position in the rating of countries-exporters of flaxseed after Canada. According to Oil World figures, in 2018 Canada exported nearly 512.1 thsd tonnes of the oilseed. At the same time, Canada shipped nearly 298 thsd tonnes of flaxseed to China. In the season-2019/20, Kazakh exporters have the best chances to increase the shipments of flaxseed on the Chinese market.



As for the price situation, to date the starting prices of new crop flaxseed on the domestic market of Kazakhstan varied within 95-100 thsd KZT/t EXW. In turn, the export bid prices of importers varied at the level of 295 USD/t FCA-Kazakh railway, E.Karabanov added.

You can become acquainted with more detailed information about the market of major oilseeds of Kazakhstan and their export prospects, from the report of E.Karabanov, co-founder of the group of companies Severnoe Zerno LLC and expert of the Grain Union of Kazakhstan, within frames of the international conference "KazakhGrainExport 2019", to be held in Istanbul, Turkey (Hilton Istanbul Bosphorus), on September 19-20.