![]() Rapeseed, meanwhile, is performing “exceptionally well” – with good availability and more competitive prices. In addition, customers who switched from sunflower to other oil crops, such as rapeseed and palm, have been reluctant to switch back to sunflower – worried about developments in the Ukraine war.” “Poland, Romania, Bulgaria, and Hungary have all banned Ukraine imports in an effort to protect their own markets. ![]() “The record prices of 2022 stimulated record planting across multiple oil crops, across the EU and around the world, and this additional supply has pushed prices down,” he revealed. Ukraine's own sunflower crop for 2023/24 is forecast at 12.4 million tonnes – up slightly from last year but still significantly down on the 17.5 million tonnes produced in 2021/22 (pre-war). This has now stabilised, and prices of sunflower, rapeseed, soya, and palm oil are all sitting below pre-war levels, Lewis told us. The Ukraine war had a huge impact on oil prices last year – driving sunflower prices to record highs, and having a knock-on effect across the oil market, as demand for alternatives rose. However, vegetable oils remain at the whim of both the weather and events in Ukraine. To ensure consistency of supply and avoid market volatility, many retailers have taken advantage of lower wholesale costs and bought cover for the following year. Though the situation is pushing up demand for other oils such as sunflower and rapeseed, vegetable oil retail prices should, however, remain steady for the foreseeable future, Lewis told us. Image: Getty/Justin Paget Vegetable oils also under pressure As a result, olive oil prices are at record highs – with prices more than doubling over the last year.Ī drone view of a road through an area of woodland burnt in the 2022 Vall d'Ebo wildfires that burnt over 12,000 hectares in a fire perimeter area of 100 km. Although global production is expected to increase in 2023, the world will still be in deficit for 2023/24. Last year, production was around 600,000 tonnes, down from 1.5 million in 2021, according to Lewis. “The market simply cannot produce enough to meet demand, and as a result, prices will remain high for the foreseeable future until the end of 2024, at least,” he told FoodNavigator.ĭrought last year, followed by a flood in spring and a heatwave in summer in key producing regions of Spain and Italy, have had a huge impact on available supply. The weather continues to have a significant impact on olive oil production across the globe, added Gary Lewis, KTC Edibles and NEODA. “Market players are very worried where these prices will end,” he said. Prices are in unchartered territory, and production is dropping to unheard of levels. It comes as amid warnings the olive oil industry is in crisis amid extreme weather in Europe.Įarlier this week Kyle Holland, oilseeds and vegetable oils analyst at Mintec, said olive oil prices are seeing extreme increases of over 20% month-on-month and over 114% year-on-year as dry, hot weather impacts production in Spain, the world’s largest producer, as well as Italy. GM crops could be a potential solution as severe heat in Europe threatens oil supplies, it has been suggested. Emulsifiers, stabilisers, hydrocolloids.Chocolate and confectionery ingredients. ![]()
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