Colzaco and Sonneveld

Analysis Rapeseed

Can rapeseed cultivation in the Netherlands flourish again?

11 April 2022 - Jesse Torringa

The price level of rapeseed is still unprecedentedly high and seems to remain so in the coming season. A major shortage of vegetable oils in Europe threatens the war in Ukraine, but what about cultivation in the Netherlands? Does rapeseed have a future in our country?

Would you like to continue reading this article?

Become a subscriber and get instant access

Choose the subscription that suits you
Do you have a tip, suggestion or comment regarding this article? Let us know

Halfway through the last century there was more than 30.000 hectares of rapeseed in the Netherlands, but now almost nothing is left of it. In recent years it has decreased further to 1.501 hectares in 2021. Winter rapeseed is mainly grown in the Netherlands and these hectares can mainly be found in the northeast of the Netherlands. The acreage in Europe has also been declining for years. With the current high prices, that may change in the coming growing season.

Price bet upwards
The demand for oilseeds has been increasing for some time now. Since the end of 2020, the price level of rapeseed has therefore been rising steadily. Even when the European harvest was above average last season, there was still a shortage. The demand within the EU was greater than the supply. Canada, a superpower in rapeseed, was going to make up for that shortfall. Nothing turned out to be less true. The harvest there was quite disappointing, with a final yield reduction of more than 14% to 12,6 million tons. The result was clear: during 2021 the price of rapeseed continued to climb upwards.

After a slight fall in January, the price shot up again in February. The war in Ukraine brought an unprecedented price level on the Matif in Paris: the €1.000 per tonne barrier was broken on March 23. The price now fluctuates around €950 per tonne. Still, the top may not have been reached yet. The reason for this is a potential shortage of sunflower oil from Ukraine. With 4,4 million tons, the country normally accounts for more than 27% of the total world sunflower oil production. At the moment the stock of sunflower oil is lower than normal, but if the war continues there is a risk of a shortage after this season. In the search for alternatives to sunflower oil, companies can turn to rapeseed oil.

An increase in vegetable oils has been a trend for some time, but is now being exacerbated by tensions in Ukraine. "The use of animal fats and oils is under pressure and is becoming increasingly complex. As a result, there is more interest in sustainable and regionally produced vegetable oils and the demand for them has increased," explains Erik Schieven. He is chairman of the Cooperative Rape Association East Netherlands (Colzaco). With these prices it is nice to do business if you have rapeseed, but simply producing more is not possible. "We can now ride along with the oil demand in the market, but the rapeseed from the 2021 harvest will soon be gone." The new crop will replenish part of it, but that is not nearly enough for the entire stock of vegetable oils that we will need next year. According to Schieven, the price of rapeseed will therefore remain at a relatively high level after this season's harvest. According to him, a shortage is therefore not inconceivable.

Rapeseed has perspective
Winter rapeseed is mainly grown in the Netherlands. "Current prices and strong demand can make the cultivation of rapeseed more attractive. Take the new generation of varieties and you can easily harvest a ton more than in the past," says Martijn van Overveld, product manager at Limagrain. For example, winter rapeseed yields of 5,2 tons per hectare. "This extra yield is mainly due to the resistance to the yellowing virus, a problem that has received little attention". Another side effect is the improved nitrogen use efficiency in the new varieties: "With the same amount of nitrogen, you can harvest more rapeseed or, you get the same yield with less nitrogen. This characteristic is more apparent with the current fertilizer prices."

According to Van Overveld, the cultivation of rapeseed has prospects in view of current developments. However, it is difficult to apply winter rapeseed in the cropping plan due to the sowing time: "You should sow rapeseed at the latest at the end of August or the beginning of September. At that time, other crops are often still on the plots." That is also one of the reasons that cultivation is mainly concentrated in the northeast of Groningen. Rapeseed fits perfectly in a continuous cultivation of grains.

No room for rapeseed in the Netherlands
Schieven sees a less rosy future for the cultivation of rapeseed in the Netherlands. According to him, there is sufficient room to grow in the production and sale of rapeseed oil. "But there is hardly any space in the Netherlands to grow rapeseed, due to the intensive cultivation of crops such as potatoes and sugar beet, the total pressure on the soil in the Netherlands. The sowing time is of great influence and you can only use rapeseed once every four years. growing on the same plot." This makes it quite a puzzle for many growers to start growing winter rapeseed again."

Schieven would like to see rapeseed cultivation in the Netherlands grow, despite the limited possibilities in the intensive construction plans. He therefore encourages growers. "The cultivation of rapeseed is extremely good for soil fertility and biodiversity." The crop also leaves behind a good soil structure for cultivation in the following season.

Call our customer service +0320(269)528

or mail to support@boerenbusiness.nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Sign up