According to the International Trade Center, in 2022, global flaxseed export is estimated at 1.9 mln tonnes or almost 1.6 bln USD in monetary terms, which is a record for the last 10 years. At the same time, the average annual growth in exports in physical terms over a 10-year period is estimated at 5%, in monetary terms — at 7%. The most active growth in the average cost of export batches of this crop is typical for the last 3 years.
The flaxseed market is quite consolidated in terms of both exporters and importers. The key suppliers of flaxseed to the global market are traditionally the Russian Federation, Kazakhstan and Canada, which together provided an average of 77% of global flaxseed exports over the past 10 years. At the same time, if Canada’s share during the reporting period decreased from 42% in 2013 to 9% in 2022, then the share of Russia increased from 23% to 42%, and the share of Kazakhstan — from 11% to 28%, respectively.
Key importers of flaxseed are China, Belgium and the USA. Their average total share in global imports over the past decade was 60%. At the same time, if the volumes of purchases by the USA and Belgium remain relatively stable, then China increased imports of flaxseed during the reporting period by more than 3.4 times.
Taking into account the territorial location of key flaxseed exporters and importers, it is natural that the US market is mainly supplied by Canadian flaxseed. But in the markets of China and Belgium there is quite fierce competition between the Russian Federation and Kazakhstan, for which these are the key markets. Over the previous three years, Russia and Kazakhstan collectively provided an average of 72% of flaxseed imports to China and 73% to Belgium. At the same time, in 2022, the figures were 95% and 89%, respectively.
According APK-Inform Agency forecasts, in 2023/24 MY flaxseed production in Kazakhstan is expected at 700 thsd tonnes, which is 9.1% lower y-o-y. At the same time, it is expected that oilseed exports may decrease by 14% — to 470 thsd tonnes. China and Belgium will remain key buyers.
We will talk about the position of Kazakh flaxseed on the global market in 2023/24 MY at the international conference Asia Grains&Oils Conference: Results of 2023, which will take place on December 5 in Almaty.
You can find a detailed agenda on APK-Inform website.