Global vegetable oil industry likely to hit record production
March 07, 2018
Global vegetable oil production is projected to hit a new record of 197M tonnes in 2017/18 due to expected large-scale growth, particularly in palm oil and soyabean oil.
Based on statistics from the US Department of Agriculture (USDA), global vegetable oil production was likely to rise 4% in 2017/18, said German oil processors’ organisation UFOP.
Palm oil production would experience the greatest growth, rising by 7.6%, due to favourable growing conditions in Southeast Asia and the quick recovery from El Niño-related dry weather experienced in 2016/17.
Soyabean oil output was projected to grow 3.7%, with production benefiting from high stocks of available soyabeans, due to record global production in 2016/17 and ongoing high demand worldwide.
Rapeseed oil was likely to see more modest growth, expected to stay at 0.5%, caused by stiff competition from palm and soyabean oils and comparatively slower development in the past season.
Sunflower oil was projected to fare the worst out of the four, with production expected to fall 2.5% due to a poor previous season in Ukraine which saw the country’s output falling by 14%.