Kazakhstan will increase the sowing areas of oilseed flax due to the growing demand from China and the low profitability of other crops.

In the current season, Kazakhstan plans to increase the sown areas of oilseed flax after a significant reduction last year. Such a forecast was announced by the CEO of LLP "Aytas Agro", the head of the production committee of the Grain Union of Kazakhstan Talgat Aldazharov during the international conference VegOil&Meals Trade on June 14 in Seville.

"An increase in sown areas in the 2024 season to 1 million hectares is expected due to the low profitability of other crops and the growing demand from China," the speaker noted.

According to him, the reduction in flax sown areas in Kazakhstan in 2023 (to 726 thousand hectares compared to 1.34 million hectares in 2022) was due to increased requirements from the European Union regarding pesticide content and low prices for oilseed crops in the previous trading season.

T. Aldazharov mentioned that the European Union market remains one of the main directions for the export of Kazakh flax, except for the past season, however, China is becoming an increasingly attractive market.

"Prices in this market are lower, but on the other hand, logistics costs are lower, and quality requirements are softer," the expert reported.

T. Aldazharov also pointed out the growing competition in the Chinese market, particularly from Russian suppliers. Another risk for flax exporters from Kazakhstan is the possible imposition of sanctions on all goods passing through Russia (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 supplies from Russia due to drought in the south and frosts in the central part of Russia. Furthermore, there is hope for improving the export infrastructure from Kazakhstan towards China.