2021
In terms of profitability, flax is considered a traditional favourite among niche crops on the world market.
Flaxseed of high food grade has a growing market in the EU, but for Ukraine it is limited by price competition from Kazakhstan, Russia and Canada, which hold 70% of the world market. The domestic market for food-grade flaxseed is also underdeveloped.
«A significant obstacle to expanding flax acreage is the 10% export duty. Its preservation is lobbied by oilseed processors, who, together with the big grain landowners, do not want to give up a single hectare in favour of niche crops. A state policy of the agrarian ministry aimed at restoring crop rotations is needed», says Mykola Shkurko, Chairman of the Board of Directors , General Director of PVKF Siaivo LLC.
An alternative to sunflower
The industry association notes that oil flax is sown in arid regions where sunflower needs to be replaced. Its drought resistance is due to the root system growing deep almost until the end of the growing season, which makes it possible to obtain yields of 12 to 25 c/ha.
A growing season of 80-105 days allows flax to be harvested at the end of July, making it a convenient predecessor for winter cereals. Another advantage of oil flax is its simple cultivation technology, which does not require insecticides, and the crop can be grown without fertilizers.
Mykola Shkurko is convinced that these advantages are grounds for flax to take its rightful place in the crop structure. Statistics, however, show a different picture.
For diversification and export expansion
LNZ Group has been growing flax since 2015 and sees prospects in this crop: in 2020 flax occupied 300 ha, and yields, depending on the climatic conditions of a given year, are about 2-2,5 t/ha.
«Today more and more people prefer healthy eating and are looking for quality alternatives. Therefore, for producers flax is quite a promising crop, first of all in terms of business diversification, and secondly for expanding export opportunities. That is why, in addition to flax, we plan to introduce new niche crops into the rotation in the near future — chickpeas and buckwheat», notes Vlada Sidletska, head of the niche crops division at LNZ Group.
According to her, flax is best grown in an arid climate, as excessive moisture can affect seed quality.
The company sells the flax it grows as seed, processes part of it into flour for the domestic market, and in time is considering exporting both flax itself and products derived from it.
One of the simplest crops
At the Rist-Agro farm in Mykolaiv region, flax is gradually replacing sunflower.
«In our region there is no longer enough moisture for sunflower, and since flax is a drought-resistant crop, we plan to introduce it more and more into the rotation. Besides, in terms of cultivation technology flax is one of the simplest crops. We received sowing recommendations from the seed supplier, and mastered the cultivation technology ourselves. We had no particular problems», says Ruslan Neroda, head of Rist-Agro LLC.
In 2020 the farm had 70 ha of flax; in the new season it plans to expand the area under this crop to 100-120 ha, which will make up 10% of the land cultivated by the enterprise.
Last year flax yields were 0,5-2,2 t/ha. The flaxseed was sold to several companies at once, one of which is Kherson Zerno, the No. 1 company in Ukraine for flax processing and linseed oil production.
Taking flax growing to a new level
Mykola Shkurko notes that there are prospects for increasing exports of food-grade flaxseed from Ukraine to both European and Middle Eastern markets. Its domestic consumption as a food supplement may also grow. But to bring the niche crops sector, including flax, to the proper level, a set of measures is needed.
As the Association for the Development of Flax and Hemp Growing of Ukraine points out, to encourage farmers to actively engage in niche crops, the state should compensate the cost of seed, use financial incentive instruments of state procurement and ensure control over farmers' compliance with crop rotations.
