World production of vegetable oil at the end of the current season will be record-breaking against the background of the expected high levels of gross yield of oilseeds, analysts say FAO in the June report. So, the output of finished products can grow during the year by 2.7%, up to 253.4 million tons.
“As for certain types of oils, the projected increase in production of palm, soybean and rapeseed oils will more than compensate for the reduction in production of sunflower, olive, and, to a lesser extent, coconut oil,” the materials say.
According to preliminary forecasts, the global production of palm oil will increase slightly in 2022/23 MY. Thus, in Indonesia, despite the expected increase in figures, the growth rate will be below the average for the past five years due to rains in some regions of the country at the beginning of the current calendar year, and the reduction of the area under the “mature oil palm“.
Similar developments are taking place in Malaysia. “Despite the gradual resolution of plantation labor shortages, growth rates may also remain low,” the FAO report states.
As for soybean and rapeseed oil, the expected increase in output is due to the projected increase in the yield of the respective oilseeds, while the decline in sunflower seed production in the Black Sea region will lead to a decline in global sunflower oil production.