Farmer's Weekly (South Africa)

Global shortages driving up SA sunflower oil prices

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The price of sunflower oil, a staple in many South African households, has increased 30% over the past year, according to Statistics South Africa’s latest consumer price index.

Grain SA economist Luan van der Walt ascribed the spike in prices to a shortage of sunflower oil on world markets and the decline in local sunflower production since the 2015/16 production season. He told Farmer’s Weekly that South Africa imported about

450 000t of oil annually.

An informal survey by Farmer’s Weekly showed that the retail price of 2ℓ of sunflower oil in a local supermarke­t rose from R56,99 in October 2020 to R61,99 in February 2021 and R72,99 in March 2021, and then dropped to R61,99 in June 2021.

This year’s global sunflower crop was estimated at 58 million tons compared with 50 million tons in the previous season. Should the 58 million tons be realised, it would be a new record.

According to Van der Walt, the decline in production in the 2020/21 season could be put down to unfavourab­le production conditions in the sunflower-producing areas of the Baltic states.

“Favourable conditions in the [Baltic] region will mean an increase in the number of hectares earmarked for sunflower. When coupled with the sharp increase in internatio­nal sunflower prices, a record harvest is highly possible in the region in the 2021/22 season,” he said.

Sunflower production in South Africa had followed a downward trend since the 2015/16 production season. This was especially evident during favourable production seasons when the rain was received early enough for maize production. During periods of late rainfall, when maize production became challengin­g, sunflower hectares increased markedly.

Van der Walt added that sunflower had also lost a significan­t number of hectares to soya bean production. Soya bean was traditiona­lly limited to the eastern parts of the summer grain production region. The developmen­t of new cultivars meant increased soya bean production in the western parts, which had a negative effect on sunflower production.

South Africa imported most of its sunflower oil and oilcake requiremen­ts, but imported very little seed.

“We have sufficient capacity to process local production, which is usually about

900 000t. We seldom process more than that to prevent a surplus [of] oilcake, which would push prices down. This is something that processors obviously want to avoid,” he added. – Annelie Coleman

 ?? ANNELIE COLEMAN ?? Sunflower production in South Africa has followed a downward trend since 2015/16.
ANNELIE COLEMAN Sunflower production in South Africa has followed a downward trend since 2015/16.

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