Record Production Forecast
Analysts from Oil World in Germany have raised their forecast for global soybean meal production for the 2024/25 marketing year (MY) to a record 269 million tons. This represents an increase of 1.7 million tons from previous estimates and it is 10.8 million tons higher than the production in the previous season. Experts predict that the production of this crucial feed ingredient will grow by 9% over the past two years.
Increase Driven by Soybean Processing
The increase in soybean meal production is primarily driven by higher volumes of soybean processing. This rise comes in response to declines in the availability of other oilseeds, such as rapeseed and sunflower. Despite the significant increase in soybean meal production, the production of meal from the other seven major oilseeds is expected to decrease by at least 1.4 million tons annually.
European Union Trends
Earlier forecasts suggested that EU countries would increase soybean meal production in the new 2024/25 MY due to an anticipated record soybean harvest. However, the EU is expected to remain a net importer of soybean meal despite these gains. In the 2023/24 season, the EU’s soybean meal imports were at their lowest in five years, nearly 1 million tons less than the previous season.
The projected increase in global soybean meal production underscores the shifting dynamics in the agricultural sector, with soybean processing playing an increasingly vital role in meeting the demand for feed. As production ramps up, monitoring import and export trends will be crucial for stakeholders to navigate the market effectively. The EU’s continued reliance on imports, despite increased domestic production, highlights the complex interplay of global supply chains in the agricultural industry.