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In the current period, an increase in flaxseed cultivation is expected in Kazakhstan after a sharp reduction last year. This forecast was made by the CEO of "Aytas Agro" company and the chairman of the production committee of the Grain Union of Kazakhstan, Talgat Aldazharov, at the international conference on the trade of vegetable oils and flour products held on June 14 in Seville.
"According to forecasts, there is a possibility of expanding flaxseed cultivation to 1 million hectares in the 2024 season due to the low profitability of other crops and increased demand from China," the speaker noted.
According to him, the reduction of flaxseed cultivation in Kazakhstan in 2023 (from 726 thousand hectares compared to 1.34 million hectares in 2022) was due to the stricter requirements of the European Union on pesticide levels and the low price of oil products in the previous trading season.
T. Aldazharov reported that the European Union market remains one of the main export destinations for Kazakh flax (except for the previous season), but China has become a more attractive market.
"Prices are lower in this market, but on the other hand, logistical costs are lower, and quality requirements are less strict," the expert said.
T. Aldazharov also noted that competition is increasing in the Chinese market, including suppliers from Russia. Another risk for flax exporters from Kazakhstan is the potential imposition of sanctions on all goods passing through Russia (which is currently the main export route from Kazakhstan to Europe).
At the same time, among the opportunities for Kazakh exporters, he mentioned the reduction in flax shipments from Russia due to drought in the south and frost in the central regions of the country. Additionally, there is hope for improvements in export infrastructure from Kazakhstan to China.
