The stocks of mustard seeds in Ukraine decreased to about 9 KMT in March 2017

According to ProAgro, the gross harvest of yellow mustard seeds in Ukraine in the 2016/17 season amounted to 39 KMT, decreased by almost 10% compared to the previous season. The reduction in the domestic supply of such raw materials appropriately affected the indicators of processing and export of the crop.

So, from the beginning of MY 2016/17 (July-February), Ukrainian enterprises processed 2.78 KMT of mustard seeds, which is almost 40% lower than the results of the corresponding period of the previous season. At the same time, in April, the volume of processing reached 512 tons, significantly exceeding the indicator of the previous month (+ 12.3%) and February 2016 (+ 76%).

Moreover, the production of mustard seeds in Ukraine remains focused primarily on exports. So, from the beginning of MY 2016/17, only 27 KMT of such products were delivered to foreign markets, which is about 70% of the yield obtained in 2016. Taking into account the processing volumes, by the beginning of the spring of 2017 the stocks of mustard seeds in Ukraine were about 9 KMT.

The key external consumer of such Ukrainian product is Germany, where from the beginning of the season almost 35% of the total export shipments were directed.

Given the prevalence of powerful negative trends on the world markets of key oilseeds in recent months, the prices of niche crops are much less volatile. This fact, as well as the presence of sufficient external demand, makes the production of niche products, such as mustard seeds, a convenient tool for hedging the risks for agricultural producers. Consequently, it leads to a gradual increase in the popularity of production of such crops among Ukrainian farmers. According to ProAgro”s forecast, the production of mustard seed in 2017 could reach 55 KMT (+ 41% compared to the results of 2016).