Global vegetable oil production set to reach new record highs in 2021-’22
Global production of vegetable oils continues to increase in the 2021-’22 crop year to reach new record highs. An expected decline in rapeseed oil output can be more than offset by production increases in palm, sunflower and soybean oil.
According to the recent USDA outlook, 2021-’22 global production of vegetable oils will amount to 214.8 million metric tons. This would be an 8.21-million-ton rise compared to 2020-’21. In other words, production will presumably fully cover demand of 211.8 million tons also in the current crop year.
Investigations conducted by the Agrarmarkt Informations-Gesellschaft (mbH) indicate palm oil is set to remain the world’s most important vegetable oil in terms of production and consumption, with output estimated at 76.5 million tons. This translates to a 3.6-million-ton rise over 2020-’21. In other words, palm oil accounts for just less than 36 percent of total vegetable oil production. Indonesia remains the largest palm oil producer with an output of 44.5 million tons, followed by Malaysia with 19.7 million tons and Thailand with 3.1 million tons.
Production of soybean oil is expected to grow 4 percent to 61.7 million tons based on larger harvests and could hit a new record. China remains the most important producer with production amounting to 17.6 million tons, whereas the U.S. ranks second with 11.6 million tons. Production of sunflower oil is expected to climb as much as 14 percent to 21.8 million tons in 2021-’22 due to larger harvests in Eastern Europe and the EU-27. On the other hand, the USDA has projected a 6 percent decline in global rapeseed oil production to 27.4 million tons based on inadequate rapeseed supply.
The Union zur Förderung von Oel- und Proteinpflanzen e.V. (UFOP) expects the persistently high prices for sunflower oil to boost expansion of sunflower area for the 2022 sowing campaign.