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Australia’s No.1 rapeseed client is the EU

This is written by Peter Elliot of Australian Export Grains Innovation Centre four months ago. It can be sourced from http://www.aegic.org.au/media/news/2014/08/australian-canola-exports-to-europe.aspx

Australia’s No.1 rapeseed client is the EU
15 Aug 2014

The European Union growing biodiesel market, in recent years, has given a boost to Australia’s canola exports. The EU-28 buys about 1.35 million tonnes of canola per annum, making up 62 per cent of Australia’s 2.12 million tonnes total annual exports.


Where does Australian canola mainly go to?

The bulk of Australia’s canola exports to Europe go into the major ports of Rotterdam (in the Netherlands), Hamburg (in Germany) and Gent (in Belgium).  However occasionally Australian canola is subsequently loaded on smaller vessels and shipped to customers in countries such as Finland, who can only take small quantities at one time or to ports which are unable to be serviced by large (30,000-60,000t) vessels.



Who are the main buyers? 
The main buyers of Australian canola in Europe are ADM (Archer Daniels Midland), Cargill, Glencore and Saipol/Diester.


What is Australian canola used for in Europe?
About 70 per cent of the canola demand in Europe is for biodiesel, with the remainder is used for food purposes mainly cooking oil.


Why has demand for Australian canola in Europe grown so strongly in the past five years?
Since 2009, the EU government implemented the Renewable Energy Directive (RED), which set targets and subsidies for plant-based fuel. The subsidy has made it competitive for Australia to produce biodiesel that meets the requirements of the RED.

The EU government requires growers to be accredited at First Hand Gathering Point by trading houses in Australia like Cargill, Glencore, CBH Group or Graincorp. Cargo surveyor SGS will then audit the rapeseed farming operation to ensure RED’s criteria are complied with.  

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