News
12.10.2017
Rapeseed can become a niche crop in Ukraine
In the near future, Ukrainian rapeseed production may return to the indicators of the early 90's in 40-130 thous. tons.
Two factors were the prerequisites for reducing rapeseed sowing. On 28 September this year, the EU under the WTO reduced import duties on biodiesel for Argentina from 22-25,7% to 4,5-8,1%, and that will curtail the demand for rapeseed, since it will be more expedient to import finished products than raw materials. Another factor is the plans of EU countries to reduce the use of biofuels in the transport sector from 7% to 3.8% and the transition in its production from plant products to other raw materials and wastes. The voting on the introduction or rejection of these proposals will be held in January 2018.
These factors can lead to a significant drop in demand for rapeseed. Given that the EU produces about 20 mln tons of rapeseed on its own, Ukrainian farmers can remain without the main market, since about 90% of the rapeseed are exported to Europe. With the adoption of changes in import duties and reduction of biofuel content, Ukrainian producers will have to look for other markets or reduce sowings under this crop. As of the beginning of October, 819 thous. ha have already been sown with winter rapeseed in Ukraine.
