PRETORIA, SOUTH AFRICA — Emerging from mid-summer drought brought on by El Niño that severely curtailed oilseeds output, South Africa is poised to see significant growth in production during 2024-25, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.
The April 1 Global Agricultural Information Network (GAIN) forecasts total soybeans, sunflowerseed and rapeseed production to reach 3.36 million tonnes in 2024-25, up 27% from 2.6 million tonnes in 2023-24. Area planted to oilseeds will remain flat at elevated levels, reaching 1.8 million hectares.
The FAS expects soybean production to reach 2.4 million tonnes in 2024-25, up 32% year-on-year. Sunflowerseed is projected at 700,000 tonnes, up 19%, and rapeseed at 260,000 tonnes, up 10%. South Africa’s oilseeds exports are projected to recover to about 380,000 tonnes in 2024-25, compared to the 90% decline suffered in 2023-24 due to drought.
Soybean is an important rotational crop with corn and rapeseed with wheat, and with stable local demand for oilseed crushing, coupled with potential export markets, oilseed area in South Africa will be maintained in 2024-25, the FAS said. Soybeans command the largest area at 63% of total oilseed plantings, followed by sunflowerseed at 30% and rapeseed at 7%.
The bulk of soybean, sunflowerseed and rapeseed produced in South Africa is crushed to produce both edible oil for human consumption and protein meal for the inclusion in animal feed rations. Total oilseeds consumption is seen at 2 million tonnes in 2024-25 for the nation of 60 million people.
“South Africa’s economic growth outlook over the medium term remains lackluster as prevailing electricity supply shortages, policy uncertainty and logistical infrastructure challenges continue,” the FAS said. “Economic woes have limited growth in consumer spending, and relatively high food inflation and interest rates have further hampered growth in consumption of both oils and meats. This is expected to limit the growth in the demand for animal feed and plant oils.”
South Africa’s total oilseed processing capacity is estimated at 2.7 million tonnes and is derived from a combination of dedicated soybean and sunflowerseed processing facilities, as well as crushing plants that switch between both crops.
South Africa crushed a record 2.6 million tonnes of oilseeds in 2022-23, and the FAS is forecasting the country will continue to crush about 2.6 million tonnes in 2023-24 and 2024-25 as stocks will ensure sufficient supply to fully utilize crushing capacity. Oilseed meal production is expected to remain flat at record levels of 1.8 million tonnes in 2023-24 and 2024-25 as maximum crushing capacity has been reached.
