Australia becomes the main supplier of rapeseed to the EU after the Ukraine conflict

Australia becomes the main supplier of rapeseed to the EU after the Ukraine conflict

EU-27 rapeseed imports from non-EU countries fell by 500,000 tons year-on-year to 5.3 million tons.

Canada – the main supplier to the EU market suffered great damage due to reduced harvest. In contrast, production in Australia has increased significantly, however, the increase is not large enough to offset the decrease in production from Ukraine. Although the EU rapeseed harvest for 2021 is larger than that of 2020, the EU’s total 2021/22 supply – estimated at 22.8 million tonnes – is down by about 1.2 tonnes from the previous year. .
EU rapeseed production was initially sufficient for processing plants; However, in the first half of this year, the volume of rapeseed needed to operate at full capacity of the plants was not enough, having to be imported from Australia, Ukraine and Canada.
According to a survey by Agrarmarkt Informations-Gesellschaft, Canada’s rapeseed production in 2021/22 will reach 611,300 tons, down about 71% from 2020/21 due to reduced planting area leading to lower harvests. This means that the share of Canadian origin in total imports decreases from 32% in 2020/21 to just 11% in 2021/22, while imports from Australia increase 45% to 2. 9 million tons.
Another reason why imports from Australia have increased sharply is due to the Russian-Ukrainian conflict at the end of February 2022. Before the conflict, the European Union imported about 1.6 million tons of rapeseed each year from Ukraine and Ukraine’s share of EU imports was just under 50%. Due to the blockade of ports, exports from the Black Sea region stopped and Australia became the main supplier.

Source: Vinanet/VITIC/ukragroconsult.com

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