Foundation of the industry association to develop the flaxseed industry in Ukraine – expert

Foundation of the industry association to develop the flaxseed industry in Ukraine – expert

The FINANCIAL -- During 10 recent years, the production volumes of flaxseed in Ukraine increased to 40.8 thsd tonnes in 2014, as opposed to 28 thsd tonnes in 2005, due to extension of the planted areas (34 thsd ha, against 26 thsd ha), and increasing of the oilseed yield (1.23 t/ha, against 1.12 t/ha), declared the General Director at Enlightening production and commercial firm “SIAIVO” Ltd., Nikolai Shkurko on November 6 during his speech at the conference "Fat-and-Oil Industry -2015" in Odessa.

At the same time, he stressed a number of problems, which slow down further development of the flaxseed industry in Ukraine. In particular, the list of problems includes some deficit of high-quality seeds of early generation, non-observance of the required agricultural methods of cultivation, low liquidity of the finished product, unstable and low demand of the oilseed processors, as well as availability of the export duties, according to APK-Inform.

Taking into account impact of the reporting factors, to date the market of flaxseed in Ukraine maily shows its export orientation, unstable production indices, and does not have well-developed infrastructure. But at the same time, the market segment has the certain prospects which can be realized only in terms of coordination of business activity of all market participants. Therefore, foundation of the specialized trade association of Ukrainian flaxseed producers would promote the effectiveness of such coordination in many ways, said N.Shkurko.

As for the forecasts for 2015/16 MY, the expert noted that the total supply of the oilseed in Ukraine is estimated at 56.2 thsd tonnes. In particular, the domestic consumption will reach 16.5 thsd tonnes (including the processing at oil - 9.6 thsd tonnes), the exports - 37 thsd tonnes, ending stocks - 2.7 thsd tonnes, added N.Shkurko.