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Flaxseed: Canada's production to rise by 30%

October 5, 2022 at 10:39 AM, Der AUDITOR
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OTTAWA/NUR-SULTAN. Opinions are divided in Canada, where harvesting is in full swing. While some are convinced that yields are good, others prefer to wait for a final assessment. Fact, however, is that flaxseed will have to come down in price in Canada to be able to compete in the international market.

High yields prompt revisions

Agriculture and Agri-Food Canada (AAFC) has revised several estimates for 2022/2023. Although the area harvested is expected to decline from 310,000 ha to 303,000 ha, average yields are to rise from 1.36 mt/ha to 1.53 mt/ha. This year's production should, therefore, climb by 30% to 465,000 mt as compared with last year. However, it should be noticed that this year's production still ranges well below the 5-year moving average.

Harvesting is 50% complete in Canada as Rayglen Commodities report. Although the quality is reported to be good, AAFC may have to revise some estimates. The plants are still developing in some parts of the country.

Promising as the outlook for the new crop is, the United States will certainly remain the main buyer for Canadian flaxseed. While smaller volumes will be shipped to Europe, shipments to China are expected to decline sharply as Russia is reckoning with a record production. Canada will definitely not be able to compete with the attractive prices offered here. As the pressure is on AAFC estimates that average prices will range 43% lower than last year at CAD 690/mt.

Flaxseed, Canada

2020/21

2021/22

Diff.

2021/22

2022/23

Diff.

Area sown (ha)

377,000

416,000

10.3%

416,000

315,000

-24.3%

Area harvested (ha)

371,000

404,000

8.9%

404,000

303,000

-25.0%

Yields (mt/ha)

1.56

0.86

-44.9%

0.86

1.53

77.9%

Production (mt)

578,000

346,000

-40.1%

346,000

465,000

34.4%

Imports (mt)

26,000

12,000

-53.8%

12,000

10,000

-16.7%

Total supplies (mt)

667,000

417,000

-37.5%

417,000

560,000

34.3%

Exports (mt)

505,000

219,000

-56.6%

219,000

375,000

71.2%

Consumption (mt)

103,000

113,000

9.7%

113,000

95,000

-15.9%

Carry-over supplies (mt)

59,000

85,000

44.1%

85,000

90,000

5.9%

Avg. CAD/mt

693

1,206

74.0%

1,206

690

-42.8%

Agriculture and Agri-Food Canada

Firm prices for brown flaxseed

The prices for cleaned brown flaxseed from Eastern Europe have remained firm at EUR 920/mt DDP Germany and for organic brown flaxseed at EUR 1,530/mt DDP Germany. Golden flaxseed has, however, gained in price and is currently quoted at EUR 1,150/mt DDP Germany.

Flaxseed, Eastern Europe

Quality

EUR/mt

Brown, 99.9% purity

920

Organic, brown, 99.9% purity

1,530

Golden, 99.9% purity

1,150

DDP Germany

 

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price chart, flaxseed, brown, 99.9% purity, Eastern Europe
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price chart flaxseed brown Eastern Europe

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