April 6, 2007

Russia to raise rapeseed production, continue soy imports

In order to boost domestic oilseed production, Russia is expected to raise its rapeseed production since the crop is well adapted to central Russia's climate, Arkady Zlochevsky, president of the Russian Grain Union, said in a statement to Reuters Thursday.

Zlochevsky said Russia would also continue to import soybeans as the region's climate is unsuitable for cultivating the crop.

While the country grows mostly sunseed, the government has called for development of rapeseed production amid rising demand from biodiesel producers.

In its bid to stimulate domestic livestock production, the government added that there was an increased need for soybeans for use in animal feed.

Although Russia's rapeseed and soybean output reached a significant 522,000 tonnes and 740,000 tonnes last year, these two crops account for a relatively low share of total oilseed production compared with sunseed. Domestic sunseed output hit a record of 6.8 million tonnes in 2006.

This year, the country is targeting to increase rapeseed sown area to 671,000 hectares from 537,000 hectares in 2006. Soybean sown area is targeted at 934,000 hectares, up from 849,000 hectares last year.