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Rape is one of the most common crops for cultivation in the EU.
In Europe, both first cold-pressed rapeseed oil and other processed products of this crop are in great demand. So, the cake is given for animal feed, and the seeds after processing are used to obtain biofuel, which is a priority for Europe at the moment.
What you need to know about rapeseed processing
The processing of this crop, as a rule, is carried out by the countries that purchase the crop. Since rapeseed processing plants are actively developing in Europe itself, it is profitable for producers to engage in processing on their own, even with an insignificant yield of this crop in the EU countries. They buy crops from other countries – according to statistics, Ukraine remains the leader among the countries that sell rapeseed to the EU. This culture is also often purchased in Canada.
It is no less rare for foreign partners to purchase a finished product – crude unrefined rapeseed oil, which is actively sold in European retail chains. In fact, it is very difficult to find this type of oil directly in Ukraine, since it is precisely an export product. This makes this crop very popular for growing on Ukrainian chernozems.
In which EU countries rapeseed is processed
In the EU, this crop is not growing very much – at least, its quantity is not enough to fully provide the countries with the necessary supply of oil and other processed products. For example, in 2020, due to a warm winter in France, the yield of this crop was only 3.39 t / ha, in Germany – 3.64 t / ha, and in Poland – 3 t / ha. At the same time, these indicators, of course, do not indicate a large-scale decline in this market, because even with insignificant indicators, the yield is still growing, albeit by a modest + 7.7%. It is in these countries that they are engaged in rapeseed processing, and it makes sense for Ukrainian producers to collect the documents necessary for the export of crops that fit the requirements of these states.
Profitability
Due to the pandemic, a reduction in rapeseed processing is predicted in the world. According to Oil World experts, in 2020 only 22.6 million tons will be processed in the EU, which is 11% less than in the same time a year earlier. At the same time, there is a noticeable decline in interest in the use of rapeseed as biofuel, as well as increased competition from sunflower and soybeans.
Oil production will also decrease – to 9.24 million tons per year. Experts predict a fall in the consumption of this product – to 9.31 million tons against 9.9 million tons last year. At the same time, an insufficient amount of this crop is still grown in the EU, so Ukrainian producers can focus on cooperation with foreign partners in this area. Thus, experts are confident that the EU countries in 2020 will purchase the maximum amount of rapeseed – a record 6 million tons against 4.2 million tons a year earlier.