Rapeseed Becomes Russia’s Most Profitable Crop

Although the Russian economy has experienced many challenges in recent years, agriculture is still the fastest-growing area of the Russian economy, of which planting is the most critical part. Among them, rapeseed has the most outstanding performance this year and has high profit potential.

Russian rapeseed is mainly used for domestic processing and export in Russia. Almost all processed rapeseed oil is exported, and 90% of the total export volume is exported to China. In the context of the Russian government's policy of banning rapeseed exports (only allowing exports through the Zabaikal port), the rapeseed planting industry can still show such high profitability, which shows that Russian rapeseed and its by-products have competitive advantage in the international market.

In 2020 and 2021, rising global food prices have led to a significant increase in profit margins for Russian agricultural crops. Last year, the most profitable crop in Russia (excluding subsidies) was buckwheat, with a profitability rate of 76.8%, followed by sunflower seeds (58.9%) and sugar beets (48.9%).

Ruseed's future forecast data shows that Russian rapeseed, soybeans and sunflower seeds will continue to maintain their profit leadership in 2024. Forecasts from the Food and Agriculture Organization of the United Nations indicate that global demand for cereals and oilseeds will increase next year. Demand for Russian oilseeds and grease products comes mainly from international food processing companies. Therefore, Russia's exports of such products will grow further next year.

Ruseed's analysis data shows that from January to November 2023, Russia's agricultural exports reached US$38 billion, of which 30% (US$7.5 billion) were oil and fat products. Combining current prices and export tariffs, it can be concluded that oilseeds will remain the most profitable agricultural crop in Russia.

In general, for all crops, market price fluctuations, changes in production costs, and the impact of external factors are factors that require close attention and careful analysis. Crop profitability is particularly affected by weather conditions, the U.S. dollar exchange rate, fertilizer prices, and the level of export tariffs. Enterprises and farmers engaged in agricultural planting in Russia should make wise decisions based on market dynamics and crop characteristics when formulating planting plans and business strategies to ensure the profitability and sustainability of agricultural production.

Although the Russian economy has experienced many challenges in recent years, agriculture is still the fastest-growing area of the Russian economy, of which planting is the most critical part. Among them, rapeseed has the most outstanding performance this year and has high profit potential.

Russian rapeseed is mainly used for domestic processing and export in Russia. Almost all processed rapeseed oil is exported, and 90% of the total export volume is exported to China. In the context of the Russian government's policy of banning rapeseed exports (only allowing exports through the Zabaikal port), the rapeseed planting industry can still show such high profitability, which shows that Russian rapeseed and its by-products have competitive advantage in the international market.

In 2020 and 2021, rising global food prices have led to a significant increase in profit margins for Russian agricultural crops. Last year, the most profitable crop in Russia (excluding subsidies) was buckwheat, with a profitability rate of 76.8%, followed by sunflower seeds (58.9%) and sugar beets (48.9%).

Ruseed's future forecast data shows that Russian rapeseed, soybeans and sunflower seeds will continue to maintain their profit leadership in 2024. Forecasts from the Food and Agriculture Organization of the United Nations indicate that global demand for cereals and oilseeds will increase next year. Demand for Russian oilseeds and grease products comes mainly from international food processing companies. Therefore, Russia's exports of such products will grow further next year.

Ruseed's analysis data shows that from January to November 2023, Russia's agricultural exports reached US$38 billion, of which 30% (US$7.5 billion) were oil and fat products. Combining current prices and export tariffs, it can be concluded that oilseeds will remain the most profitable agricultural crop in Russia.

In general, for all crops, market price fluctuations, changes in production costs, and the impact of external factors are factors that require close attention and careful analysis. Crop profitability is particularly affected by weather conditions, the U.S. dollar exchange rate, fertilizer prices, and the level of export tariffs. Enterprises and farmers engaged in agricultural planting in Russia should make wise decisions based on market dynamics and crop characteristics when formulating planting plans and business strategies to ensure the profitability and sustainability of agricultural production.

Although the Russian economy has experienced many challenges in recent years, agriculture is still the fastest-growing area of the Russian economy, of which planting is the most critical part. Among them, rapeseed has the most outstanding performance this year and has high profit potential.

Russian rapeseed is mainly used for domestic processing and export in Russia. Almost all processed rapeseed oil is exported, and 90% of the total export volume is exported to China. In the context of the Russian government's policy of banning rapeseed exports (only allowing exports through the Zabaikal port), the rapeseed planting industry can still show such high profitability, which shows that Russian rapeseed and its by-products have competitive advantage in the international market.

In 2020 and 2021, rising global food prices have led to a significant increase in profit margins for Russian agricultural crops. Last year, the most profitable crop in Russia (excluding subsidies) was buckwheat, with a profitability rate of 76.8%, followed by sunflower seeds (58.9%) and sugar beets (48.9%).

Ruseed's future forecast data shows that Russian rapeseed, soybeans and sunflower seeds will continue to maintain their profit leadership in 2024. Forecasts from the Food and Agriculture Organization of the United Nations indicate that global demand for cereals and oilseeds will increase next year. Demand for Russian oilseeds and grease products comes mainly from international food processing companies. Therefore, Russia's exports of such products will grow further next year.

Ruseed's analysis data shows that from January to November 2023, Russia's agricultural exports reached US$38 billion, of which 30% (US$7.5 billion) were oil and fat products. Combining current prices and export tariffs, it can be concluded that oilseeds will remain the most profitable agricultural crop in Russia.

In general, for all crops, market price fluctuations, changes in production costs, and the impact of external factors are factors that require close attention and careful analysis. Crop profitability is particularly affected by weather conditions, the U.S. dollar exchange rate, fertilizer prices, and the level of export tariffs. Enterprises and farmers engaged in agricultural planting in Russia should make wise decisions based on market dynamics and crop characteristics when formulating planting plans and business strategies to ensure the profitability and sustainability of agricultural production.