EU vegetable oil imports decline in MY 2024-25 as demand shifts to oilseeds

EU vegetable oil demand experienced a significant decline, with imports falling 21% on the year in the marketing year 2024-25 (July-June) as of Nov. 24, according to data from the European Commission. In contrast, a rise in oilseed imports into the bloc indicates a shift in EU trade preferences.

EU soybean oil imports fell 66% year on year while there is a 50% and 19% decrease in rapeseed oil and sunflower oil imports, respectively. Palm oil imports dropped 18% on the year,

A decline in soybean oil imports was compensated by increasing soybeans and soybean meal imports, while rapeseeds and sunflower seeds were seen substituting their oil imports.

The EU is a “traditional net exporter of soybean oil,” so a decline in its imports will not affect much, according to the EC. In addition, soybean imports are 7% higher this year compared with the same period last year.

“As these soya beans are crushed, they will provide additional volumes of soya oil,” the EC said. The same applies to rapeseed and sunflower seeds.

The EU’s total oilseed imports in MY 2024-25 rose 8% compared with last year.

Russia and Belarus were traditional suppliers of rapeseed oil to the EU. However, the EC said that effective July 1, 2024, additional duties were imposed on Russian and Belarusian oilseeds, decreasing EU rapeseed oil imports.

Higher prices of sunflower oil, which was offered at a premium to soybean oil, resulted in its lower demand, therefore, imports decreased.

“The post-pandemic spike in sunflower oil prices is not resulting in consumer demand,” a trade source said. “Also, sunflower oil prices are higher than rapeseed oil and soybean oil.”

Historically, palm oil, the cheapest vegetable oil, started to sell at prices in line with substitute oils — soybean, sunflower and rapeseed. Such volatility in vegetable oil prices has prompted a shift to oilseeds.

EU oilseed imports, July 1-Nov. 24, 2024 (mt)

Source: Agriculture and Rural Development, EC

Meal preferences change amid EU ban

The EU’s rapeseed meal and sunflower meal imports declined 55% and 18%, respectively this year as of Nov. 24 compared with the same period last year. Whereas soybean meal imports rose 25% to 7.64 million mt which resulted in a 14% rise in overall oil meal imports.

Traditionally, the EU has a deficit in plant protein for its livestock sector and soy protein is particularly appreciated in this respect; however, depending on price competitiveness and availabilities, other protein sources like sunflower meal and rapeseed meal are also widely imported.

The EU imports most of its sunflower meal from Ukraine and Russia and rapeseed meal from Russia and Belarus.

“This season, there were lower availabilities of sunflower meal in Ukraine on smaller beginning stocks and lower production and Russian sunflower meal imports were subject to additional duties, similar reasons for rapeseed meals as there were no imports from Russia and very little from Belarus,” the EC said

This pushed EU meal importers to look for an alternative, which is soybean meal.

The EU is the world’s largest soybean meal importer and the second-largest soybean buyer.

Uncertainty about EUDR implementation

Uncertainty in the market about the implementation of the anti-deforestation rules (EUDR) also resulted in changing trade preferences.

European stakeholders indicate that they increased soybean and soy meal imports to prepare for potential problems with the implementation of EUDR as of Dec. 30, 2024, as there was uncertainly in the market regarding how this new legislation will be implemented; therefore, the users prefer to advance purchases, the EC said.

Similarly, for palm oil, buyers are still unsure about as to whether to import palm oil due to sustainability regulations, trade sources said.

In October, the EC proposed to delay the implementation of the anti-deforestation rules (EUDR) after its global partners, as well as European stakeholders, expressed their concerns regarding their state of preparedness to comply with the additional diligence requirements under the EUDR regime. The regulations, earlier set to be implemented in December 2024, are proposed to be delayed by a year to December 2025.

“The Commission proposed a delay to the implementation of the EUDR and there might be some simplification,” an expert from the World Farmers’ Organization said.

The EC said the postponement in EUDR would give more time to its trading partners to prepare.

“This additional time should permit sufficient preparation to avoid disruption in trade patterns,” the EC said.

The incoming EUDR regulations, proposed in 2022, include diligence requirements on seven key agricultural commodities — cattle, cocoa, coffee, rubber, palm oil, soybean and wood derivatives — to prove that their supply chains did not contribute to deforestation globally or face heavy fines and trade bans.

Tags: sunflower oil, soybean oil, EU, soybean, sunseed, rapeseed, rapeseed oil