Canada Leads China’s Rapeseed Oil Import Market

Rapeseed is the largest source of edible vegetable Oil in China, and the output of Rapeseed Oil accounts for more than 40% of the domestic edible vegetable Oil. In 2021, China’s Rapeseed output was 14.7 million tons, a year-on-year increase of 4.7%. Rapeseed Oil production was 5.8 million tons in the same year, a year-on-year increase of 8.4%. The Rapeseed Oil production in the provinces along the Yangtze River accounts for more than 90% of the country’s total output. The Yangtze River Basin is not only the main producing area of ​​Rapeseed but also the main processing area of ​​Rapeseed Oil.

According to the Ministry of Agriculture and Rural Affairs, the area of ​​Rapeseed harvested in summer this year expects to exceed 100 million mu (666 square meters) again since 2015, and the unit yield in the main producing areas projects to hit a record high. With the support of national policies and good weather, the economic benefits of Rapeseed have improved for growers. According to the National Grain and Oil Information Center, the planting area of ​​Rapeseed expects to reach about 120 million mu, and the output will reach 18 million tons by 2025.

The supply of Rapeseed Oil divides into two parts: crushed domestic output (crushed Rapeseed includes domestic and imported) and imported. China’s Rapeseed Oil imports are far greater than exports. According to statistics, Rapeseed Oil has grown significantly from 2015 to 2021. In 2021, China’s Rapeseed Oil imports reached 2.1 million tons, an increase of 11.5% year on year. However, the import volume of Rapeseed Oil was 475,800 tons in January-May 2022, a year-on-year decrease of 61.8%, and the export volume was 0.08 million tons, a year-on-year increase of 18.5%.

The Rapeseed Oil import value in 2021 was 2.4 billion US dollars, a year-on-year increase of 46.1%. From the perspective of China’s import sources of Rapeseed Oil, Canada, the United Arab Emirates, and the Russian Federation are the leading suppliers of Rapeseed Oil. According to statistics, the import volume in 2021 was 913,500 tons, 366,400 tons, and 339,100 tons, respectively, accounting for 75.2% of the total.

A small amount of Rapeseed Oil shipped to Hong Kong, Macau, Mongolia, and other regions. The export volume in 2021 was 1,449 tons, 98.8 tons, and 47.7 tons, respectively, and the total export volume of these three markets accounted for 94.7% of the total.

China’s State-owned food and Oil giant COFCO Corporation said: It expects improved Rapeseed processing turnover due to higher output and enthusiasm among farmers this year. The firm’s crushers, located in the Yangtze River drainage basin, can process 2.1 million tons in the main Rapeseed -producing areas situated in the region.

COFCO Xiangrui Grain and Oil Industry (Jingmen) Co., Ltd in Hubei Province has purchased more than 28,000 tons of Rapeseed, making it the most significant industry player in China. The company purchased an average of 1,800 tons of seed from farmers, paying an average of 10 million yuan (US$1.5 million) to farmers.

As the Rapeseed prices are historically high, farmers are highly motivated to sell Rapeseed , making it faster for Rapeseed  to be processed into Rapeseed  Oil. In China, Rapeseed Oil divides into four grades according to the degree of refining. The higher the refining level, the higher the number. The processing, trade, storage, and consumption of Rapeseed Oil in China are dominated by grade 4 Rapeseed  Oil, accounting for more than 80% of the spot trade volume of Rapeseed  Oil.

The grade 4 Rapeseed Oil prices were 12900 yuan/ton in the Hefei City of Anhui Province, 13180 yuan/ton in Nantong City of Jiangsu Province, and 13380 yuan/ton in Chengdu of Sichuan Province as of 15 August.