Local value chain excels
On the international front, the bombing of Ukraine's grain facilities by Russia in the Black Sea is cause for concern and has a major influence on grain prices. Russia continues to attack Ukraine's grain facilities and there is some doubt whether they have any interest in getting the Black Sea grain corridor working again.
United States' (US) weather predictions indicate substantial amounts of short-term rain. The improved weather and lower export volumes will assist in putting pressure on oilseed prices.
World production of soya beans is expected to reach a surplus in 2023/24 even with lower than anticipated production in the US. However, the demand for soya bean products is expected to increase after 2022/23 experienced a record low decline of usage to 245 million tons due to subdued livestock consumption and loss of market share to other oil meals.
World production of canola is expected to decrease by 1,8 million tons due to a reduction in the Canadian crop. World rapeseed production is anticipated to be close to 76 million tons. Growth in the world's canola, palm and sunflower seed output is expected to slow down in the current season.
The local outlook
Hectares of canola increased from 123 510ha in 2022 to an estimated 128 100ha in 2023 and with favourable rainfall, we can expect an excellent canola crop in South Africa this year.
The South African oilseed industry reached a milestone in April 2023 with the last vessel of Argentine soya bean meal reaching our shores this year. In 2022, imported soya bean meal dwindled to 183 603 tons, and was almost surpassed by exports of 180 937 tons.
Last year 1,7 million tons of soya beans were crushed for oil and oilcake while the anticipated crush for this year is approximately 1,8 million tons. This will produce a possible 1,4 million tons of soya bean meal which means that for the first time in our history we should be self-sufficient in South Africa. This is indeed a major achievement by all in the value chain.
This issue of Oilseeds Focus once again celebrates advances in oilseed production, processing and nutritional value.
Enjoy the read.