China’s Rapeseed Oil Imports Value Passes $2 Billion
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China’s Rapeseed production for MY 23/24 is forecast at 15.4 MMT, down slightly from the previous year based on a slight acreage expansion to 7.35 MHa and lower yields, in line with the three-year average. China has two planting periods for Rapeseed. The winter crop is typically planted in November/December and harvested in April/May. The summer crop is planted in June and harvested in September.
MARA estimated MY 22/23 Rapeseed area at 7.27 MHa, an increase of 3.8 percent, and production at 15.5 MMT, up 0.8 MMT or 5.5 percent year-on-year. Notably, industry estimates of Rapeseed production are significantly lower than official data. Industry contacts note that, based on estimated crushing volumes, actual production may be as low as half the volume reported in official data.
Expanding Rapeseed production continues to be a PRC priority. The 2023 No.1 Document notes planting winter crop Rapeseed in southern China. Leading Rapeseed-producing provinces are expected to continue to provide incentives for Rapeseed. MARA has indicated additional subsidies will be provided for winter Rapeseed planting in 2023, although specific rates have not been published. Rapeseed area growth in MY 23/24 may be partly driven by improved Rapeseed profits from farmers in MY 22/23.
According to an official survey, MY 22/23 Rapeseed prices increased about 7 percent from the previous year, leading to more enormous farmer profits. In Hubei province (a top Rapeseed producer), farmers averaged 1,515 Yuan/Ha ($216/Ha), a 14 percent increase year-on-year. In Sichuan, the largest Rapeseed-producing province, profits in MY 22/23 reached 3,000 yuan/Ha ($428/Ha) compared to the previous year’s negative margins. Rapeseed farming is partly driven by a preference for Rapeseed oil in Sichuan and Hubei provinces and by tourism as travelers descend on rural areas during the Spring Rapeseed flowering.
Sichuan leads other provinces by Rapeseed production of 3.4 million tons. The following provinces were Hubei, Hunan, Anhui, Guizhou, Jiangxi, and other Northwest Provinces (Inner Mongolia, Xinjiang, Gansu, Qinghai, Xizang, and Ningxia).
MARA’s survey indicated winter Rapeseed planted area reached 110 million Mu (7.3 MHa) in MY 23/24, surpassing the estimated 104 million Mu (6.9 MHa) in the previous year. Rapeseed areas in Sichuan, Hunan, and Jiangxi provinces all show moderate growth in MY 23/24 with combined net area growth of 200,000 Ha from the previous year. As of early February, MARA rated crop growth in most Rapeseed-producing regions as “good,” noting adequate sunlight hours, average temperatures, lower precipitation, and minimal disease and pest impact.
Rapeseed and Rapeseed Oil Trade in China
According to AgFlow data, China imported 2 million tons of Rapeseed from Canada in Jan-May 2023, followed by Australia (0.1 million tons). Canada provides nearly all of the PRC’s Rapeseed imports. Trade tensions led to a significant decline in imports of Canadian Rapeseed beginning in MY 18/19, with volumes dropping to 1.6 MMT in MY 21/22 from a record 4.7 MMT in MY 17/18. Post expects imports to reach 2.9 MMT in MY 22/23 and 3 MMT in MY 23/24 on improving bilateral relations and strong Canadian production. In the first quarter of MY 22/23, Canada accounted for 92 percent of China’s Rapeseed imports.
In 2021, China imported Rapeseed Oil worth $2.11 billion, becoming the world’s 2nd largest importer of Rapeseed Oil. The same year, Rapeseed Oil was China’s 143rd most imported product. China imports Rapeseed Oil primarily from Canada ($801 million), Russia ($394 million), the United Arab Emirates ($360 million), the Netherlands ($184 million), and Belgium ($81.3 million). In 2021, China exported Rapeseed Oil worth $7.88 million, making it the world’s 44th largest exporter of Rapeseed Oil.
Other sources: USDA
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