by PressExperts predict the growth of rapeseed production in Germany
Growth of rapeseed and other crops in Germany: a market overview
The German association DRV presented the forecast for the agricultural industry for the current period. According to the document, rapeseed production in the country is expected to increase by 12%, and it will reach the mark of 3.9 million tons.
The total volume of wheat harvest is expected to reach 22.6 million tons, which exceeds the previous figures by 3%. Experts note that in Germany there are favorable weather conditions for the growth of grain crops. It is especially noticeable in winter wheat, the harvest of which exceeded the previous period. However, a difficulty for farmers may be the increase in fertilizer prices. Not all producers will be able to buy the substances in the necessary volume, which will lead to a decrease in yield and deterioration of their quality.
Winter barley production in Germany is expected to be 8.9 million tons and spring barley production is to be within 1.7 million tons. As for maize, its yield will be lower than in the previous period, but it will be partially compensated by an increase in planted acreage. The total reduction of culture production is promised by 7%, to 4.1 million tons.
In 2020, the German government passed a law to reduce greenhouse gas emissions. According to the document, the country must reduce its volume by 25% by 2030. In connection with this, there is an increase in demand for rapeseed, which is used to produce biofuel. German oil mills process more than 9 million tons of oilseeds, and these volumes will only grow in the future. And Germany is not the only country that is increasing its purchases of rapeseed. The European Union is actively implementing an environmental strategy, and an important point of it is to reduce the use of traditional fuels. Against this background, the popularity of biofuel production is increasing.
However, the rapeseed harvest in the European Union is not enough to cover the growing demand, so countries are actively importing raw materials. With the tense geopolitical situation, it is becoming increasingly difficult to provide sufficient crop volume. The situation is aggravated by production cuts in a number of major exporters, including Canada. Accordingly, the price of rapeseed on the world market continues to increase. At the moment all hopes of the European importers are focused on Australian producers that traditionally supply products in the second half of the season. Moldova and Serbia are also increasing rapeseed sales to the EU.
According to the data from USDA, last year the global rapeseed harvest was slightly more than 68 million tons, which was the lowest indicator for the last 9 years. It is unlikely to compensate for the losses of the previous period in the current season, given the reduction of production in a number of countries.