Egypt: Greater Use of Blended Soybean and Sunflower Oils
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FAS Cairo forecasts Egypt’s Soybean Oil production in MY 2022/23 at 728,000 MT, up by almost 6.5 percent from the MY 2021/22 estimate. The increase in Soybean Oil production reflects higher crushing activity. Post’s estimate of Soybean Oil production in MY 2021/22 remains unchanged from the USDA official estimate of 683,000 metric tons.
Soybean Oil consumption is projected to reach about 1.07 MMT in MY 2022/23, up 60,000 MT from MY 2021/22 estimate of 1.01 million metric tons. The latter remains unchanged from the USDA’s official estimate of 1.01 MMT. The post attributes the increase in soy Oil consumption in MY 2022/23 to more significant amounts of higher-quality cooking Oils being blended with Soybean and Sunflower Oils and then channeled through the country’s subsidy program.
According to AgFlow data, Egypt imported 41,261 tons of Sunflower Seed Oil from Russia in Jan-May 2023, followed by Bulgaria (21,000 tons). Egypt’s Soybean Oil imports in MY 2022/23 at 420,000 MT, up by 10,000 MT from the MY 2021/22 Post estimate due to increased crushing capacities capable of producing greater volumes of Soybean Oil for blending with other Oils. MY 2021/22 assessment of soy Oil imports remains unchanged from the USDA’s official estimate of 410,000 metric tons.
In 2021, Egypt imported Soybean Oil worth $287 million, becoming the world’s 10th largest importer of Soybean Oil. In the same year, Soybean Oil was Egypt’s 67th most imported product. Egypt imports Soybean Oil primarily from: Argentina ($84.6 million), Paraguay ($59.1 million), Russia ($59 million), Brazil ($40.9 million), and Italy ($18.9 million).
FAS Cairo forecasts Egypt’s Sunflower Seed Oil production in MY 2022/23 at 36,000 metric tons. This volume remains unchanged from the MY 2021/22 USDA official estimate. FAS Cairo forecasts Egypt’s Sunflower Oil consumption in MY 2021/22 at 350,000 MT, up by 50,000 MT from the MY 2020/21 estimate of 300,000 metric tons. Post anticipates slightly higher levels of Sunflower Oil consumption in MY 2022/2023 driven by population increase and predicted higher Sunflower Oil consumption by urban middle and higher-income consumers. Post is revising MY 2021/22 Sunflower Oil consumption by 50,000 MT from USDA official estimates due to higher prices and less supply impacted by the disruption of Ukraine exports, a significant supplier of Sunflower Oil to Egypt.
Egypt’s Sunflower Oil imports are forecast at 350,000 MT in MY 2022/23, up by almost 50,000 from Post’s MY 2020/21 estimate of 300 000 MT driven by higher consumption and higher use in blending with Soybean Oil for the subsidy program. Post is revising MY2021/22 Sunflower imports by 50,000 MT from USDA’s official Estimate due to the war in Ukraine, a significant supplier of Sunflower Oil to Egypt.
Palm Oil Consumption in Egypt
Egypt does not commercially cultivate Oil Palms, nor does it produce any Palm Oil. FAS Cairo forecasts Egypt’s Palm Oil consumption in MY 2022/23 (October-September) at 1.23 MMT, up by 5.1 percent from Post’s MY 2020/21 estimate, which remains unchanged from the USDA official estimate. The increase in Palm Oil consumption is attributed to the growth in population and more use of Palm Oil in food production. The USDA estimates that 94 percent of Palm Oil goes to food production; vegetable shortenings account for 40 percent. Restaurants, catering, and fast-food chains utilize shortening extensively. Production of vegetable ghee accounts for 50 percent of Palm Oil use.
Margarine accounts for three percent of use, mainly by private bakeries and patisseries.
Egypt’s imports of Palm Oil in MY 2022/23 at 1.26 MMT, up 5 percent from the post’s MY 2021/22 estimate. The USDA attributes the increase to a four-to-five percent growth in the food-processing sector (a major consumer of Palm Oil). The marketing year 2021/22 import estimate of 1.2 MMT remains unchanged from the USDA’s official estimate.
Other sources: USDA
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