World Oilseeds Market

According to 2015/16 data in the report of US Department of Agriculture, Foreign Agriculture Service (USDA FAS) which was published in May, the global production of oilseed is about 521 million tons. Soybean comes at the top of the list with a production of 313 million tons. Soybean is followed by rapeseed with 70 million tons, peanut with 40,56 million tons, sunflowerseed with 40,51 million tons, cottonseed with 35,9 million tons and palm kernel with 15,9 million tons.

arastirma90In terms of global production volume, the oilseeds that are produced in largest amounts are soybean, rapeseed, cottonseed, peanut, sunflowerseed and palm kernel. The products with a market value that is increasing day by day in Turkey and around the world, are used in production of oil, and as raw materials or additives in flour, feed, biodiesel and other industries.

According to the May report of US Department of Agriculture, Foreign Agriculture Service (USDA FAS) the global production of oilseeds is expected to slightly increase. With the descent of soybean production in Brazil and the US every year, it is expected to fall behind its previous record-breaking level. More increase in production of other significant oil seeds is anticipated. Following the decrease in 2016/17, and with the increase in cultivation areas of rapeseed, the production is expected to moderately increase. Production of sunflowerseed, peanut and coconut is also expected to increase slightly. Production of cottonseed and palm kernel is expected to make a strong leap in 2017/18.

Global consumption of oilseeds is expected to grow by 4%, with the strong growth seen in production of ground soybean in China. The demand for soybean is expected to grow by a robust rate with the domestic consumption increasing at a faster particularly the consumption of cottonseed, palm kernel and other oilseeds is expected to increase.

The industry of oilseeds, vegetable oil and by-products industry has been rapidly accelerating in Turkey and around the world in the last 20 years. In terms of demand, the demand for food as well as for biodiesel has been increasing in developing countries. However, with the global need for food, which has been recently increasing and may cause significant problems in developing countries, it is emphasized that the use of oilseeds in production of fuel will adversely affect agricultural industry. Besides, studies demonstrate that in the event that all vegetable oils around the world are converted to biodiesel, it can meet only a month’s need for fuel in the world. Therefore, use of oilseeds for purposes other than food is still under discussion. In use of oilseeds in food production, the primary activity is production of oil. In addition to production of oil, some of these plants are used as additives in flour and other food products. The waste generated after processing of these products is handled as raw materials or additives in feed industry.

WORLD OILSEED PRODUCTION
According to 2015/16 data in the report of US Department of Agriculture, Foreign Agriculture Service (USDA FAS), the global production of oilseed is about 521 million tons. Soybean comes at the top of the list with a production of 313 million tons. Soybean is followed by rapeseed with 70 million tons, peanut with 40,56 million tons, sunflowerseed with 40,51 million tons, cottonseed with 35,9 million tons and palm kernel with 15,9 million tons.
It is estimated that the production of 7 species of oilseeds mentioned in the USDA report has continued to grow in 2016/17, like it has in the last 3 seasons, and has reached 566 million tons. In 2017/18, the production of oilseeds is anticipated to reach to 572 million tons.

Among the leading countries in production of oilseeds, the US is responsible for 115,8 million tons out of the total global production of 521 million tons, and with this amount it is ranked at the top of the list. The US is followed by Brazil with 99 million tons, Argentina with 60,7 million tons, China with 54,4 million tons, and India with 29,7 million tons.

WORLD SOYBEAN PRODUCTION AND
PRODUCER COUNTRIES
Soy or soybean, is a kind of pulse which is indigenous in Eastern Asia, and which is primarily cultivated for its edible beans. However, the United Nations Food and Agriculture Organization (FAO) has classified soybean as an oil seed, instead of a kind of pulse, due to 18-19% oil contained in its seed. Soybean has become a preferred product around the world due to its oil content.

Approximately 85% of soybean is turned into soybean meal or vegetable oil. Skimmed soybean meal is an important and affordable source of proteins for animal feed and many types of ready-cooked food products. The vegetable oil obtained from soybean is another important food product that is produced by processing of soybean plant. This oil is used in many industrial practices.

Soybean is the kind of oil seed that is most commonly produced around the world. According to USDA data, the global production of soybean, which was 313 million tons in 2015/16, will reach 348 million tons in 2016/17. The USDA estimates that the production of soybean in 2017/18 will fall by 3,5 million tons to reach 344 million tons.

According to data of 2015/16, USA produced a total amount of 106,8 million tons. The USA is estimated to have increased its production to 117,2 million tons in 2016/17. The USDA estimates that the US will produce 115,8 million tons in 2017/18. According to data of 2015/16, the US is followed by Brazil with a production volume of 96,5 million tons. Brazil is estimated to produce 111,6 million tons of soybean in 2016/17. Argentina, which is ranked in third place in production of soy, produced 56 million tons in 2015/16. In the same period, China produced 11,7 million tons, and India produced 7 million tons. In 2017/18, China is estimated to produce 13,8 million tons, and India 11,5 million tons of soybean.

China is the leader in production of crashed soybean, with a production of 81,3 million tons of soy in 2015/16. China is followed by the US, Argentina, Brazil and the European Union in crashed soybean production.

WORLD RAPESEED PRODUCTION AND
PRODUCER COUNTRIES
Rapeseed is a plant species which is obtained by treatment of rape, and which does not contain erucic and glucosinolates. Its production costs are less than other products, particularly less than wheat. It also provides early revenues since it is harvested 1 month earlier than wheat. It is used as green feed and silage in livestock breeding. Rapeseed meal is richer and more nutritious than sunflower and cotton, in terms of protein and cellulose content.

Since rapeseed was first developed in Canada, it was initially called “canola”, derived from “Canadian Oil Low Acid”. Rape is an important oil plant with 38-50% oil and 16-24% protein content in its seed. In food industry, it is used as frying or preservation oil due to its neutral nature. Furthermore, its is used in production of biodiesel, and as raw material in feed production.

Rape is ranked in second place among oil seeds cultivated as sources of vegetable oils, in terms of production volume. It is produced in about 70 million tons per year around the world. According to USDA data, the global production of rapeseed, which was 70 million tons in 2015/16, will reach 68,8 million tons in 2016/17. The USDA estimates that the 72,7 million tons will be produced in 2017/18.

According to data of 2015/16, the EU countries lead the global production of rapeseed with a production volume of 21,9 million tons. The EU is estimated to produce 20,3 million tons of rapeseed in 2016/17. In 2015/16 season, EU countries are followed by Canada with 18,3 million tons of production. Canada is estimated to produce 18,5 million tons of rapeseed in 2016/17. In the same season, these countries were followed by China with 14,9 million tons, and India with 5,9 million tons. In 2016/17, China is estimated to produce 13,5 million tons, and India 6,9 million tons of rapeseed.

WORLD SUNFLOWERSEED PRODUCTION
AND PRODUCER COUNTRIES
Sunflowerseed is one of the most important oil plants today with its 65-70% oil content. Sunflower oil is the most preferred vegetable oil due to its cooking quality. Therefore, it is cultivated at economic level in many countries around the world.

A thousand sunflower seeds weigh from 70 to 200 grams. The seeds of oil species are smaller, and the seeds of appetizer species are bigger. Smaller seeds contain more oil, and bigger seeds contain less oil. Sunflowerseeds contain 35% of husk and 65% of kernel. Husked seeds have an oil content of 45-55%, and the oil content inside is around 65-70%. The oil from sunflower is used in cooking, salads, frying and canned fish, as well as in industrial production of paint and soap. Soybean meal contains a significant amount of protein (20%) and some oil (1-7%), which makes it a nutritious animal feed. Plates of ground sunflower are used as feed for small cattle and poultry. The husk of sunflower seeds is used raw material in preparation of yeast, and in production of alcohol and furfural. Sunflower seeds are commonly consumed as appetizers across Turkey.

According to USDA data, the global production of sunflowerseeds, which was 40.5 million tons in 2015/16, will reach 45,6 million tons in 2016/17. The estimated amount in 2017/18 is 46 million tons, according to USDA.

According to 2015/16 data, the leading producers of sunflowerseed are Ukraine, Russia, the EU, Argentina, and Turkey. Ukraine produced 11,9 million tons in 2015/16 season. It is estimated that Ukraine produced 13,7 million tons of sunflowerseed in 2016/17, and will produce 13,5 million tons in 2017/18. In 2015/16 season, Ukraine is followed by Russia with 9 million tons of production. Russia is estimated to produce 10,8 million tons of sunflower in 2016/17. The EU, which is ranked in third place in production of sunflowerseed, produced 7,7 million tons in 2015/16. The production of sunflower in the EU is estimated to reach 8,3 million tons in 2016/17. In the same season, the production in Turkey is estimated to increase from 1,1 million tons to 1,4 million tons.

WORLD COTTONSEED PRODUCTION AND
PRODUCER COUNTRIES
Cotton, which is a fiber plant, consists of fiber and 40% seed. In addition to being a fiber plant, cotton is considered as a good oil plant due to its 40% oil content in its seed. The cottonseed has a wide area of use. These areas include production of feed products for livestock. In addition to animal feed, cotton seed is also a good source of proteins for human nutrition. It can be used either alone or in combination with other vegetable or animal sources of proteins. Furthermore, the oil extracted from cottonseed kernel is used in cooking and salads. Cottonseed oil is also a very important element in production of solid oil and margarine. These seeds can also be used as organic fertilizer, thanks to its 41% protein content and natural nutrients such as omega-9 fatty acids. Another area of use for cotton seed is cosmetics.

Cottonseed is ranked in 5th place in the world after soybean, rapeseed, peanut and sunflowerseed. According to USDA data, the global production of cottonseed, which was 35,9 million tons in 2015/16, has reached 38,7 million tons in 2016/17. It is estimated that the production of cottonseed will continue to increase in 2017/18, amounting to 41,7 million tons.

According to 2015/16 data, the global leaders in cottonseed production is India (11,2 million tons), China (8,6 million tons), the USA (3,6 million tons), Pakistan (3 million tons) and Brazil (1,9 million tons).

WORLD PEANUT PRODUCTION
Peanut, which is ranked among the top three among approximately 8 oil plants used in global production of vegetable oils, is an annual and summer product from the pulses family. It contains 45-55% oil, 20-25% protein, 16-16% carbohydrates, and 25% minerals.

Peanuts are widely used for human nutrition as well as in various industrial areas. Peanut oil is used in solid or liquid form for cooking, as well as in canning fish, and production of biscuits, cakes, candy and soap. After the oil is extracted from peanut, the residual meal is a very valuable feed product. Furthermore, since peanut is from the pulses family, its plant parts are valuable as animal feed. Although the main and by-products of peanut have a diverse area of use, most of it is consumed as appetizers. Since it is successfully cultivated as a secondary product after the harvest of wheat, it provides additional income to producers.

Peanut is ranked in fourth place among oil seeds cultivated as sources of vegetable oils, in terms of production volume. It is produced in about 40-43 million tons per year around the world. According to USDA data, the global production of peanuts, which was 40,5 million tons in 2015/16, will reach 42,3 million tons in 2016/17. In 2017/18, global production of peanuts is estimated to reach 43,2 million tons.

According to 2015/16 data, the global leaders in peanut production is China (16,4 million tons), India (4,4 million tons), Nigeria (3 million tons), the USA (2,7 million tons) and Sudan (1,8 million tons).

WORLD OILSEED TRADE
The global trade of oil seeds is estimated to increase with growing demand from China. As the strong increase in demand has exceeded the increase in production, it is estimated that the stocks will remain unchanged in 2017/18. Nevertheless, the record-breaking data from this year’s products in the US and Brazil will ensure sufficient supply, even if they fail to reach the trend levels. It is estimated that the stocks of rapeseed, cottonseed and palm kernel will grow, while the stocks of peanuts and sunflowerseed will shrink.

The amount of globally traded oilseed varies between 140 million tons and 170 million tons. According to 2015/16 data of the US Department of Agriculture, Foreign Agriculture Service (USDA FAS), the global production of oilseed is about 153,8 million tons. There are several differences in import and export volumes in the data of USDA on global trade of oil seeds. Therefore, the data is handled on the basis of mean of exports and imports. According to USDA data, China is responsible for import of 87,9 million tons out of the total global imports of oil seeds, which was 153,8 million tons in 2015/16. China, which imported 87,9 million tons of oil seeds, is followed by the EU with 20 million tons, Mexico with 5,9 million tons and Japan with 5,7 million tons. USDA has declared that the total export of oilseeds amounted to 152,9 million tons in 2015/16, and according to its data, Brazil and the US are the leading exporters of oil seeds in the world. Brazil exported 54,6 million tons of oil seed, while the USA exported 53,7 million tons.

Soybean, which leads the global trade of oil seeds with an import and export volume of 125 million tons, makes up approximately 85% of global trade of oil seeds. In global trade of oil seeds, soybean is followed by rapeseed with 14,5 million tons, peanuts with 3,2 million tons, and sunflowerseed with 1,8 million tons.

We also suggest you to read our previous article titled "WORLD GRAIN AND PULSES MARKET".

Check Also

World Durum Wheat Market and Turkey

The demand to durum wheat which is the main raw material for the production of …