December 29, 2011

Value of US oilseed farming reaches record high

The total value of US oilseed farming, excluding soy is currently at its highest with an estimated amount of US$1.1 billion, according to a report from IndustryandMarkets.

Prices had been swept up in the soft commodities boom that was caused by global supply shortages in 2010 and early 2011. This pushed up revenue for oilseed farming by 35.8% in 2010, with an additional 3.8% expected through 2011.

Farmers in this industry grow a variety of oilseeds, including rapeseeds, sunflower seeds and flaxseeds. Soy and cottonseeds are not included in this industry report.

While the value of oilseed production has grown strongly over the five years to 2011 at an average annualised rate of 15.8% these crops are increasingly being produced in mixed farming practices much of the rapeseed, sunflower, flaxseed and other oilseeds produced in the US are produced in conjunction with other crops.

This has resulted in a declining number of farms dedicated to producing just oilseeds from 782 in 2006 to an estimated 584 by the end of 2011.

The outlook for the oilseed farming industry is more subdued, with industry revenue forecast to grow at an average annual rate of 2.2% to US$1.3 billion between 2011 and 2016.

Barring any severe weather conditions domestically and globally, IBISWorld anticipates that the growing acceptance and adoption of vegetable oils will spur demand from the American consumer.

Additionally, the expanding biofuel market could also help producers expand their horizons over the next five years.

The Oilseed Farming in the US Industry Market Research Report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors.

Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.