Home > Uncategorized > Where are rapeseed grown and its oil exported to?

Where are rapeseed grown and its oil exported to?

The news reports below on the global rapeseed output and the exports of canola are written by Sean Pratt. They are sourced from http://www.producer.com

Dip in EU oilseed output could spur Canada’s exports
7th Nov 2014
By Sean Pratt

The International Grains Council (IGC) is forecasting declining winter rapeseed production in the European Union and Ukraine.

It could mean Europe will have to import more Australian canola next year, which would allow Canada to export more to China.

The council estimates EU plantings will fall by four per cent to 16 million acres, the lowest level since 2012-13. “Farmers are discouraged from sowing due to low prices and reduced profitability, while new EU farm subsidy rules under the Common Agricultural Policy (CAP) have rendered other crops relatively more attractive,” said the council in its October 2014 summary.

Yields are expected to be down because of dry seeding conditions in major production regions.

An EU ban on neonicotinoid pesticides is also expected to diminish yields because of high levels of insect damage in Germany and the United Kingdom, two of the EU’s top rapeseed producing countries. “Next year’s EU crop is likely to be significantly smaller,” said the council.

The EU is the world’s biggest producer of rapeseed-canola and the second largest exporter of the crop behind Canada.

Ukraine is also a major exporter. Its winter crop typically accounts for 95 per cent of the country’s total rapeseed production.

The council is forecasting 2.12 million acres will be planted in Ukraine, down nine per cent from last year’s plantings and 25 per cent below the previous five-year average.

“This is a continuation of the steady downward trend of recent seasons and reflects a gradual switch to spring-sown crops, which are less prone to damage from adverse weather,” said the council.

Yields are expected to be down as well because of reduced application of inputs caused by poor credit availability associated with the ongoing conflict with Russia. “Output is seen falling markedly year-on-year,” said the council.

That’s all good news for Canadian canola growers, said Chuck Penner, an analyst with LeftField Commodity Research. Most of Ukraine’s rapeseed is grown in the west, far away from the political turmoil in the east, but he agreed that yields will be down because of a lack of inputs.

Penner said Stratégie Grains is also forecasting a small contraction in EU rapeseed acreage. The best guess at this stage is for normal yields, which would be down from terrific yields in 2014-15.

“That will be positive. That would mean that Europe would probably start to buy more again from Australia, so then Australia stops exporting so much to China and then it helps our business,” said Penner.

Australia is expected to harvest a smaller canola crop. The Australian Oilseeds Federation estimates 3.65 million tonnes of production, down from 3.9 million tonnes in 2013-14. There has been poor winter rainfall in the core growing regions of southern New South Wales, central Victoria, the Wimmera districts and South Australia.

The IGC said plantings in Belarus are estimated at 988,000 acres, unchanged from last year. Over at Russia, its rapeseed crop is largely planted in spring.

The seven-year rich
21st Nov 2014
By Sean Pratt

The national voice for Canada’s canola industry knows nothing about a company that signed a C$1 billion deal to ship Canadian canola oil to China.

Canadian Prime minister Stephen Harper and federal agriculture minister Gerry Ritz recently returned from a trade mission to China, where they witnessed LeMine Investment Group sign an agreement to ship C$1 billion of canola oil to China over the next seven years.

LeMine is an Ontario condominium developer that appears to have come out of nowhere to become one of the largest suppliers of Canadian canola oil to the second largest buyer of the product behind the United States.

“I don’t know anything about this company or this specific transaction,” said Patti Miller, president of the Canola Council of Canada.

She said the council doesn’t get involved in commercial transactions, but it seems odd that the national voice for the canola industry has never heard of a company that will be exporting such an amount of oil.

“Just because we’re not aware of somebody’s involvement doesn’t necessarily mean it’s a strange deal, but I don’t know who they are,” said Miller.

To put the deal in perspective, Canada’s entire canola oil export program to China last year was 885,180 tonnes, worth C$1.06 billion. “China is one of our most important customers and this agreement ensures that they will continue to be a very promising and consistent market,” said Miller.

LeMine was contacted for this story but the company’s senior executives were in China and unable to comment. The company intends to host a news conference in Toronto in early December to discuss the deal.

LeMine provided a translated version of a Chinese news release about the deal. It was scant on details but said the deal is between LeMine and Guizhou Fengguan Group.

The Canadian canola oil will be sold through Guizhou Fengguan Group’s 416 Walmart supermarkets and 746 Fengguan Home Shops in China.

Miller was also excited about the establishment of the China-Canada Economic and Financial Strategic Dialogue, which will deepen trade and investment between the two countries. “This is a helpful step towards increased economic co-operation that could facilitate better market access for Canadian canola,” she said.

Miller said it is nice to have a regular forum involving senior government officials where the canola industry can raise ongoing market access and trade policy issues, such as China’s modernisation of its food and feed safety regulations and its certification of Canadian processing plants and products.

In the meantime, Canadian canola and other oil could be facing market access issues in India. Reuters reported India’s food ministry wants to double the import tax on crude edible oils to five per cent and boost the tax on refined oils to 15 per cent from 10 per cent.

The ministry is waiting for feedback on the proposal from other ministries before sending it to cabinet for approval.

“If that is something that is being considered actively in India, then it’s something we would want to talk with our government about and try to make changes there,” said Miller.

India is not a big buyer of Canadian canola oil, but the council thinks it could become one.

India is the world’s largest importer of vegetable oil, mostly palm, soybean and sunflower oil. However, the council believes there will be a growing market for healthier oil because of the rapidly expanding middle class and the high rates of coronary disease.

  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: