Abnormal Rise in Biodiesel Imports Hits Rapeseed Prices in Europe
- 25-May-2023 6:41 PM
- Journalist: Patrick Knight
Europe: The surge in imports of waste-based Biodiesel has caused a notable disruption in the rapeseed market in Europe. Being the primary oilseed crop of the European Union, Rapeseed and its derived oil are extensively utilized in the production of Biodiesel fuel.
The EU's objectives for renewable energy use include promoting the production of Biodiesel using waste oils and fats. However, the significant growth in Biodiesel imports raises concerns about their origin as waste streams.
The prices of EU rapeseed oil have experienced a sharp decline of more than 30% in the past five months, resulting in a corresponding drop in Rapeseed prices. This significant downward trend cannot be attributed to any other market factors, indicating an abnormal market behaviour.
The recent decline in Rapeseed markets has been attributed to a variety of factors, including the importation of Biodiesel. Industry experts have highlighted the abundance of rapeseed supplies in Europe, as well as changes in biofuel policies, as additional factors contributing to the drop in prices. This comes after a period of record-high prices that followed Russia's invasion of Ukraine.
This season, there has been a significant decrease in the import of vegetable oils by the EU. The reduction can be attributed to concerns regarding deforestation caused using palm oil in Biodiesel.