Russia: Sales of Strube Sunseeds Increase 100%
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According to the Rosstat’s estimates, Russian oilseed harvest amounted to 29 million tons in 2022, 17% higher than in 2021 (24.85 million tons). Including Sunflower, 16.36 million tons were harvested against 15.66 million tons a year earlier (an increase of 4.5%), soybeans – almost 6 million tons against 4.76 million tons (an increase of 26%), rapeseed – 4.5 million tons against 2.8 million tons (plus 61.6%). Farmers planted 570,000 hectares of Sunflower in the Krasnodar Territory and harvested 1.3 million tons of seeds last year. This is 42.5% more in area and more than two times more in harvested crops compared to 2020.
From 2017 to 2022, Sunflower crops in Russia increased from 7.5 million hectares to 9.5 million hectares, or by almost 26% – this is a massive increase in area, Oleg Tkachenko, a General Director of Strube Rus draws attention (represents the German manufacturer in Russia Strube seeds). In his opinion, it is unlikely that such rapid growth will continue this year. “Rather, there are more prerequisites for some reduction in crops (maximum by 5-10%) or stabilization at current values in the next two years,” he notes. “However, after stabilization, Sunflower acreage may increase again if market conditions favor it.”
One of the factors that may hold back the expansion of Sunflower plantings this year is a slight delay in the issuance of import permits for significant imported oilseeds. This, among other things, was faced by Strube Rus itself. “In early March, the situation improved, but it is still not very clear how this hitch will eventually affect the sowing season and whether it will lead to disruptions in the supply of seeds to customers,” says Tkachenko.
The growth of Sunflower areas in the near future may also be affected by the new rules prescribed in the law on seed production, the head continues. The document is under consideration in Russia and has not yet been adopted; however, some paragraphs of the law, if adopted in its initial form, may significantly affect the commercial policy of many foreign seed companies in the Russian market.
“If an agricultural producer cannot find the Sunflower seeds he is accustomed to on the market, then he will look for an alternative and eventually sow something else,” Tkachenko said. – Yes, most likely, growing another crop will not become more profitable for him, as if he sowed Sunflowers, but if there are no seeds, then there are none. If they are, but more expensive, the farmer will most likely still prefer this oilseed since Sunflower is still one of the most profitable crop rotations.”
According to AgFlow data, Russia exported 0.3 million tons of Sunseeds in Q1 2023.Turkey was the largest market with 168,243 tons, followed by China (63,000 tons) and Sudan (17,827 tons). By March 2023, the price of Sunflower reached record lows in Russia; before that, price had been growing continuously since November 2022. So, according to the website of the Yug Rusi company, the cost of Sunflower seed in March 2023 was 27 thousand rubles per ton (USD350). While a year earlier, Sunflower seeds were traded at 40 thousand rubles.
Strube Sunseeds in Russia
Sales of Strube Sunflower seeds on the Russian market increased by 100% in 2022. “It was a good year for us in terms of sales, there were, of course, many challenges in terms of changes in logistics and high inflation in Europe, which affected the cost of seed production, but all the seeds were delivered to our customers on time and were sown on time,” Oleg Tkachenko assures. “Agrarians have received high results, and the fact that more than 90% of customers buy our seeds year after year is good proof of the high quality of Strube breeding.”
Other sources: AGBZ
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