Rapeseed procurement volume in 2015 decreased by 54% year-on-year

According to relevant statistics, as of September 30, various grain enterprises in 9 major production areas including Sichuan and Hubei had procured 10,000 tons of newly produced rapeseed, a decrease of 1.88 million tons compared with the same period of the previous year, a decline of 54%.

Due to this year's policy adjustment canceling the unified temporary storage procurement, rapeseed prices opened low and moved lower, and the overall price level during the procurement period fell by about 30% compared with last year. The price decline led to an increase in farmers' self-use, and the decline in the rapeseed commercialization rate was the main reason for the decrease in procurement volume. In addition, because large crushing enterprises suffered losses, an increase in the quantity of domestic rapeseed entering small-scale crushing also led to a decline in the statistically reported procurement volume.

After the cancellation of the unified temporary storage procurement, the sharp drop in rapeseed prices led to a decline in farmers' planting returns. Although wheat prices also declined, the decline was smaller than that of rapeseed, and comparative planting returns would still be higher than those of rapeseed. It is expected that the rapeseed planting area will show a significant decline of more than 10% in the next year. A decline in output and an increase in the proportion of small-scale crushing consumption will lead to a decline in the effective supply of domestically produced rapeseed meal. In the future, rapeseed meal supply will rely more on imported rapeseed crushing, and the trend of rapeseed meal prices will also be more affected by fluctuations in international rapeseed prices.