The oilseed production is a major source of protein that is beneficial to the body. It has numerous benefits. Apart from its nutritional value, it can be exported to other countries to generate revenue. An oilseed farmer can sell his produce locally or within the country to make a profit. “Oilseed and oilseed extracts can be used as raw materials for other products like perfumes,” says Roman Dawidowicz. Other by-products of oilseed include body oil, hair oil, candles, soaps, bio-oil, and many more.
Oilseeds trading is a continuous process due to high demand and supply in the Asian and African continents. According to Roman Dawidowicz, this commodity is exported to America and other Western countries. Roman Dawidowicz is a mandarin speaker and oilseeds trading expert. Roman Zenon Dawidowicz knows where to buy and sell oilseeds locally and internationally.
The trading pattern is volatile due to political unrest, unpredictable weather conditions, and changing trade laws.
Sustainable development, policies, and market directions have impacts on the growth and development of oilseeds. The government has been advocating for the organic production of oilseeds to diversify the economy.
Benefits of Oilseeds Trading
Demand for oilseeds has exceeded expectations in Africa and Asia.
In recent findings, oilseed trading is more than 110 million tons. The economy and growth of the country have increased as a result.
The needs of the consumers have also affected the demand for oilseeds due to health awareness. There has been a rise in foreign trade of oilseeds from neighboring and distant countries.
It has also reduced the scarcity of food and hunger in the nation.
Recent trading directions point to the African and Asian continents. These continents have increased the number of oilseeds imported to other continents. The major imported produce is palm oil, soybeans, corns, and many more.
China doesn’t have enough corn so their need for oilseeds is greater than other countries. It has affected trading patterns in the Asian continent. The amount they import is getting higher than other countries due to their high population. Furthermore, the demands are expected to grow.
The African and Asian Oilseeds Market
In the Asian market, the major players in oilseeds trading are Malaysians and Indonesians. Argentina also contributes to large oilseed production but it is neither an Asian nor African country. These countries export oils from oilseeds to other countries for monetary value.
In Indonesia, the export value may fall slightly behind Malaysia because industries have been established. Indonesian companies are trying to produce olefins, bio-oils, and food, hence they have to reduce the quantities exported.
In India, there is hope for an increased oilseeds production rate to about 3.2 percent in the next five years. This is in line with the Indian government‘s target for generating revenue for the country. It will help in stabilizing the Indian economy, growth, and development.
In Africa, the numbers of oilseed exported every year is a significant amount.
Future Prediction of Oilseed Production
Many oilseed traders are concerned about the decline in demand for oilseeds in meat-producing countries. The higher the demand for meat, which is another source of protein, the lesser the demand for oilseed. This is already true for most countries in Europe where demand for oilseeds has declined.
If care is not taken, Brazil will outgrow Africa and Asia in crop production. It has been estimated that in the next two years, Brazil will be among the leading oilseed importers. “They have the pasture and resources for it,” explained Roman Dawidowicz.
Black Sea Regions and the Danube’s are also doing their best to increase oilseeds production.
These can be attributed to:
- Presence of land that has good nutrients conducive for farming.
- Availability of many consumers with high demand.
- Excellent location for importation and exportation.
- High competitive prices
- High returns and development rates.
The government is helping to create awareness of oilseed production through favorable policies and incentives. The government wants to ensure sustainable development for the masses and protect the environment.
Companies that use oilseeds as raw materials for their products contribute to environmental degradation. Hence, the government is encouraging safe production practices to reduce climate change.
As the demand is higher than the supply of oilseeds, the price has doubled. It has also affected the price of other commodities. The more the price of oilseeds increases, the more it affects the price of other products.
During the recent pandemic, the economy of every nation in the world was affected. Some businesses packed up, some had to stop operations temporarily. It reduced the global economic growth which many are still recovering from. This is why oilseeds prices declined a little bit due to decreased production rates.
But the good news is that sales will start picking up until the price stabilizes in the market.
Thailand, Vietnam, India, and Malaysia’s future goal is to produce more oilseeds for exports.
Roman Zenon Dawidowicz hoped that many countries can provide the amenities and resources needed to produce oilseeds.