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Future for fiber flax is positive

10 October 2018 - Niels van der Boom

The flax and linen industry has turned its future 180 degrees. Since 2013, the European area of ​​fiber flax has been on the rise again; linen is especially popular in Asia and India. That has an effect on prices. There are also opportunities for cultivation in the Netherlands.

In Europe, the cultivation of fiber flax is mainly present in France, the Netherlands and Belgium. The trade associations of these countries came out in 2016 with reports that the acreage had to remain stable. A further rise would unbalance the market and thus the price.

Area management
"In the past we have indeed argued for controlling the acreage of fiber flax", confirms David Kasse of trade association Vlas and Hennep.nl. "That is to say: no abrupt expansions that suddenly cause too much flax fiber on the market, resulting in price pressure. That is now less of a risk, because sales have increased year on year. The large companies, especially in China and India, have invested in flax spinning and weaving. Consumers are also increasingly interested in natural raw materials for textiles."

"For flax cultivation, expansion only makes sense if it takes place gradually," he continues. "After all, there must be sufficient machines available for harvesting and processing. They cannot be delivered today and tomorrow. These are special machines that are produced in small numbers by specialists."

The risk of price pressure has decreased

- David Casse

Western European flax cultivation grew by an average of 2013% ​​per year between 2018 and 12,5, as demand has increased. The acreage in the 3 countries mentioned above amounted to 123.000 hectares this year, of which 2.200 hectares in the Netherlands and 15.500 hectares in Belgium. Prices for long flax fiber have doubled in 10 years, while stocks have decreased at the same time.

World Linen Forum
To combine cultivation, export and demand, the first World Linen Forum was organized in Paris at the end of September. More than 200 participants gathered here to discuss the flax and linen sector. The spinning mills in China and India face challenges. 

The price of fiber has risen, but the price of yarn has not. Both prices must remain in balance, according to the sector. Investments are also required to develop the sector. Finding skilled personnel is increasingly a problem for processors.

Climate-proof cultivation
The topic of climate change was also on the agenda; in France in particular, research is being done into climate-proof flax cultivation. It is expected that, on average, sown will take place earlier and that more winter flax will be grown. In the Netherlands, flax cultivation is almost entirely clustered in Zeeland. Here, too, arable farmers have had a special flax year.

Nevertheless, Kasse does not expect any shifts in region. "The Dutch flax is processed by the companies in Zeeuws-Vlaanderen and just across the Belgian border. For logistical reasons, cultivation remains concentrated in the southwest of the country. The trick is to grow flax on plots that are suitable for this. that is: with a good soil structure. With a short growth cycle of about 100 days, flax cannot withstand extremes."

High grain price
Commercial crops (such as fiber flax) measure themselves against grain prices, which are currently at a level that is significantly higher than in the previous 2 years. Kasse does not yet dare to make estimates about the price or the acreage. "Indeed, the grain price is higher. On the other hand, the price of sugar beet is under pressure. Perhaps this offers opportunities again."

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

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