March 1, 2007

ASA: Rapeseed meal oversupply in France forecast

Rapeseed meal supplies in France are forecast to reach 3 million tonnes by 2010, up from 1.2 million tonnes in 2005 and an estimated 1.6 million tonnes in 2006, as a result of increasing biodiesel production.

However, according to Corinne Peyronnet, animal feed specialist at ONIDOL (Organisation Nationale Interprofessionnelle des Graines et Fruits Oleagineux), this three million tonnes will only find a market if rapeseed meal use in animal feed is pushed to its maximum and if prices drop at least 10 percent.

At present, rapeseed meal inclusion in ruminant feeds in France is limited to 15 percent and ONIDOL is conducting a promotional campaign to persuade feedmillers and on-farm mixers to include higher levels. Similarly, the association is trying to convince the industry to increase rapeseed meal inclusion on pig feeds beyond the 10 percent limitation currently in place. Nonetheless, many believe that France will have to increase its exports of rapeseed meal, for example to Spain, because domestic demand will not match this growing supply, especially in view of high soybean meal supplies and DDGS.

Meanwhile in Britain, ADM UK has announced that it will close its vegetable oil hydrogenation plant in March because demand for hydrogenated fats had fallen to almost zero, says Steven Zehr, general manager of ADM - Pura Food Ltd. He said that High oleic, low linolenic oils are the future due to the link between trans-fatty acids, formed during the hydrogenation process, and coronary heart disease. ADM UK would like to purchase British-grown high oleic rapeseed but the volumes produced are too low at present and the company wants to encourage British oilseed producers to switch to high oleic varieties. Last year, the premium for high oleic rapeseed was around 30 pounds or US$59.10 per tonne.