World soyabean production to touch 31 crore tonne by 2020

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Mumbai, Jan 19: Soyabean is expected to continue to be the major oilseed of the world in the coming years and its production which currently accounts for 59% of the total world oilseed production is expected to reach 30.7 crore tonne by 2020, up from 23.3 crore tonne in 2005, said Carlo Lovatelli, president, Brazilian Association of Vegetable Oil Industries.

While presenting a paper at the 75th International Association of Seed Crushers’ World Congress Mr Lovatelli said that he expected global soybean production to average around 29.5 crore tonne during 2016-20. Rise in demand for soybean as cattle feed and demand for soy oil will push the oilseed production higher in the coming years, he reasoned.

The demand will be lead by India and China as they will remain the largest importers in the coming years and increasing population and rising per capita income in these countries would drive up demand for soybean products, he said.

He said the outlook for oilseed product demand is favourable for the soybean complex as reduction of protectionist practices in the meat market and the increase in petroleum prices create new opportunities for the soybean complex. Moreover, soybean production will continue to be competitive and will be able to quickly meet increased demand, he said.

On a global level, an increase in the average annual meat consumption per person to 43 kilograms in 2020 from 38 kilograms in 2005, and increased use of vegetable meals instead of animal ingredients in cattle feed will drive demand for soybean, Mr Lovatelli said.

Apart from increased soybean consumption in cattle feed, use and demand for bio-diesel will be another factor supportive of soybean demand, he added. Soybean and its derivatives are increasingly used in generation of bio-diesel in Brazil and Europe, he said.

“Brazil will overtake the US in terms of soybean production by 2020,” Mr Lovatelli said. Brazil is expected to produce around 10.5 crore tonne of soybean in 2020 against around 6.4 crore tonne in 2005. The US, which is currently the largest producer of soybean, is expected to produce 8.7 crore tonne in 2020 from around 8.6 crore tonne in 2005.