Sept. 24 (Bloomberg) -- Production of vegetable oils and fats in the European Union is set to rebound in the next season as sunflower seed and olive oil output jumps, Oil World said.
Sunflower oil production in the EU may top 2.9 million metric tons in the 2013-14 season starting Oct. 1, the most on record and 16 percent higher than a year earlier, the Hamburg-based researcher said in an e-mailed report. Olive oil output will surge 40 percent from the prior season, helping bring total EU production of 17 oils and fats to 22.6 million tons, 3.6 percent more than a year earlier. Last year, some crops in southern and eastern Europe were hurt by drought.
“Production of oils and fats will recover pronouncedly in the EU,” Oil World said. “Consumption is expected to increase at best marginally, probably curbing import requirements somewhat.”
EU consumption of oils and fats, including for food and biofuels, may total 29.8 million tons, 0.2 percent more than the previous year, Oil World said. Imports at 9.98 million tons may be the second-highest ever, behind last year’s record 10.1 million tons, according to the report. Palm oil will account for the majority of EU imports at 6.3 million tons.
World production of sunflower oil may be about 15 million tons in 2013-14, about 12 percent more than a year earlier, Oil World said. Output in Russia, the second-biggest producer, after Ukraine, may climb 11 percent to 3.59 million tons, helping the country’s exports jump 29 percent to 1.4 million tons.
“Following a season of insufficient supplies that resulted in a decline of stocks worldwide, the global sun oil balance is expected to return to a surplus,” Oil World said. “A sharp increase of sunflower oil usage is likely to occur in the European Union and China as well as in many North African and Middle East countries, promoted by the exceptionally attractive sun oil prices.”
To contact the reporter on this story: Whitney McFerron in London at firstname.lastname@example.org
To contact the editor responsible for this story: John Deane at email@example.com