Oilseed production on the rise in Europe

The price for oilseeds has already passed the €1.000 per tonne mark since the start of tensions between Ukraine and Russia, prompting some farmers to grow more. Total European oilseeds production is forecast to increase by 6,4% to 32,2 million tonnes. The actual production of vegetable oils amounts to 15,9 million tons.

High production level should compensate for Ukraine's deficit
Winter rapeseed is in average good condition in Europe - due to mild winter conditions. Add to this the small increase in the area (to 5,5 million hectares) and the yield increases by more than 1 million tons (+6,5%) to 18,1 million tons of rapeseed. The same applies to sunflowers. The sowing area is reportedly increasing (due to the temporary exemption of fallow plots) to 4,7 million hectares. The yield, according to the Commission, amounts to 11,2 million tons of sunflower seeds.

In addition, the soybean area is also increasing slightly, to almost 1 million hectares. The Commission reports that under normal weather conditions, increased production should make it possible to compensate for lower deliveries from Ukraine. The price of oilseeds is rising due to the war, but that does not alter the fact that European production was good last season. Production in the 2021/2022 season was about 6,5% higher than the previous season, to 30,2 million tons. This was mainly due to the good yield of sunflower seeds, which was 16,2% higher than last year and 8% above the 5-year average.

Quota and export ban
Last week it was announced that Russia will introduce a quota of 15 million tons on sunflower oil exports from April 1,5. The country is also imposing an export ban on sunflower seeds and rapeseed. This has everything to do with the high prices for these oils, which have caused demand in Russia to rise sharply. The measures apply until August 31, 2022.