by PressFAS forecasts: EU oilseed cultivation to rise
EU oilseed cultivation to reach more than 33 million tonnes
The FAS has presented its forecast for the agricultural sector for the 2023-2024 marketing year. Oilseed cultivation in the EU is expected to increase by 4%. It will amount to just over 33 million tonnes. This result will be mainly due to weather conditions. A slight increase in the area under cultivation will also play a role.
Rapeseed represents the largest oilseed producer in Europe. Its harvest will be over 19 million tonnes, slightly less than last year. Sunflower production is forecast to reach 10.5 million tonnes, an increase of 13%. The soybean harvest will reach about 13 million tonnes, up 12% from last year.
The area under oilseeds is 12.7 million hectares. It increased by just 2% from last year. Farmers primarily expanded the area under rapeseed and soya and, to a lesser extent, sunflowers.
Causes of boost crop production
High demand and favourable world market prices are helping to boost crop production. Analysts expect European farmers to harvest a good crop of soybeans and sunflowers this season. Rapeseed production will be lower than last year, but not significantly so. Overall, experts predict favourable conditions for oilseeds across the European Union.
The volume of oilseed meal production will remain the same, but less will be needed for livestock production. A 1% drop in demand in this sector is due to a slowdown in the industry. However, oilseeds will continue to be in demand for the production of biofuels and edible oils.
Given the high production volumes and attractive prices, analysts recommend focusing on processing soybeans and sunflowers rather than rapeseed. Given the declining demand from the livestock sector, demand for meals on the world market will decline.
In the EU, demand for processing raw materials for meals and oil exceeds the production of oilseeds in 27 countries. The EU used to buy crops from a country now embroiled in geopolitical conflict. But those supplies are now in trouble. In previous seasons, the EU imported 50-70% of its sunflower meal. And around 90% of its sunflower oil from this producer.
It should be noted that European countries consume large quantities of sunflower oil, preferring it to other oils. It is also used for biofuel production, facilitated by lower sunflower prices. Rapeseed is mainly used as animal feed and, to a lesser extent, for biofuel production.