Production of canola oil and meal in Australia will increase

In the next season, the volume of canola oil production in Australia will reach 495 thousand tons, it is 9% higher than the expected level in 2023/24 agricultural year (454 thousand tons), predict experts of the Foreign Agricultural Service of the U.S. Department of Agriculture (FAS USDA).

As experts note, the increase will be associated with a possible increase in gross canola harvest by 14% – up to 6.5 million tons.

At the same time, according to analysts, in recent years, when oilseed production in the country remained at a high level, and world oil prices were very attractive, market participants have a desire to expand domestic oilseed processing capacity. Against this backdrop, Australia has already announced a series of new investment projects in the oilseed industry, which will be completed in 2025 and beyond.

“When expanding capacity, processors need to maintain a reasonable level of utilization to optimize their economics,” commented USDA’s FAS.

There, they also forecast canola meal output to increase in MY 2024/25 to 696,000 tons from an expected 638,000 tons in MY 2023/24.

“If this happens, the result would be the highest ever recorded,” the experts added.

Tags: Australia, rapeseed, rapeseed oil