At the beginning of 2024/25, the EU reduced vegetable oil imports to a 12-year low

According to Oil World, in Q4 2024, the European Union reduced imports of four main vegetable oils by 14% to 1.38 million tons compared to the same period in 2023, and also reduced domestic production of oil, especially rapeseed and sunflower.

Consumption of rapeseed, palm and sunflower oils also decreased, primarily due to a decrease in biodiesel production, but this was offset by an increase in consumption of soybean oil, whose imports to the EU in 2024 increased by 8% to 660 thousand tons, of which a record 330 thousand tons were supplied from Ukraine (+37% year-on-year), and 140 thousand tons (-25%) from Argentina.

At the same time, the EU increased imports of used cooking oil (UCO) by 22% in 2024 to a record 2 million tons. Significant supplies of this product from Southeast Asian countries are increasing competition in the biofuel feedstock market.

Ukraine in July-January 2024/25 MY reduced rapeseed oil exports compared to the corresponding period of the previous season by 48% to 196.6 thousand tons, which became the second historical indicator. Of these, 73% or 143 thousand tons were delivered to the EU, while in 2023/24 MY exports to the EU were 32% higher and amounted to 55% of the total volume of supplies. The reduction in oil exports is caused by an increase in rapeseed prices due to a decrease in its production in the EU in 2024, which made it more expedient for the EU to purchase raw materials, rather than Ukrainian oil.

From July to February 11, 2024/25, the EU imported 140.9 million tons of rapeseed oil (261 thousand tons for the same period in 2023/24), of which 63% came from Ukraine, 20% from the UK, and 7% each from Serbia and Canada. In 2023/24, the main suppliers of rapeseed oil to the EU were Ukraine (38%), the UK (21%) and Belarus (19%). Since July 2024, the EU has imposed duties on products from the Russian Federation and Belarus, which has led to increased supplies to China, which is the third largest supplier of rapeseed oil after the Russian Federation and the UAE.