by PressDemand for rapeseed grows on the world market
The benefits of increased demand and value of rapeseed for Ukrainian farmers
Analysts evaluated the agricultural market and singled out a number of crops, the demand for which will steadily grow for some time. The leader in demand this season is rapeseed, where there is a high margin, due to global processes.
However, the important point in this case is to what extent Ukrainian growers will be able to take advantage of the situation in the segment and not to lose the profit.
According to experts, rapeseed has long been a success in the local market as a crop for export. They estimate the potential of oilseed production at 1.5 million hectares. With such areas for cultivation, this sector will become a stable business that brings a good income. At the same time there is a possibility to expand the acreage by about 0.5 million hectares. One of the advantages of winter rape is germination in difficult conditions, where other crops do not survive. Crop acreage has traditionally fluctuated more than for other plants, which require more favorable conditions.
In the last few years, rapeseed prices have been increasing, and analyst Chaslau Koniukh says the main reason for that is the high demand, which has not been matched by the supply. The rise in price has also been influenced by global increases in the cost of agricultural products such as soybeans.
We should also consider the fact that after the pandemic, countries had to actively rebuild their economies. In order to do this, many states began to pump money into the market, which affected all segments, including agriculture. Another factor that forced a new look at rapeseed is the adverse weather conditions that hit Canada. The crop is expected to decrease considerably there, which will lead to a change in the balance of power on the market.
We should also not forget about the changes that are introduced on the state level. For example, the German government decided last spring to tighten the requirements of the climate agreement. According to the innovation, companies must now further reduce greenhouse gas emissions from the use of conventional fuels. Against this background, in 2022 the concentration of biodiesel in conventional diesel fuel should reach 7%, and by 2030 this figure should increase to 25%. Similar changes also apply to biofuels made from palm and soybean oils.
Last season, the volume of world rapeseed exports increased by 13% compared to the previous period. This figure exceeded the average values for 5 years. The main suppliers of the crop on the global market were Canada, Australia and Ukraine. However, due to reports from weather forecasters, this season Canada is likely to yield the primacy to Australia.