The Ministry of Agriculture of the Russian Federation plans to extend the ban on the export of rapeseed from the country until the end of February next year in order to protect domestic processors.
Initially, Russian rape growers faced an export ban at the beginning of 2022: then the government set restrictions on the export of rapeseed until August 2022, then the ban was extended until the end of February 2023.
Currently, the ban is not in effect: it was not extended in the winter. However, its new introduction from September 1, 2023 to February 29, 2024 is now being discussed.
Why is this required?
We are talking about developing the production of rapeseed oil, cake and meal on the territory of the Russian Federation.
This season (that is, from last year’s raw materials), it has doubled. And last but not least, this was due precisely to the export ban, experts say.
At the same time, only 40-60 thousand tons per year would be enough for domestic consumption of rapeseed oil, everything else can be exported.
But as for the meal, it is a valuable feed for farm animals, so no more than 25-40% is exported, everything else is consumed domestically.
The measures taken last year helped to largely load domestic oil refineries with work, but there are still capacity reserves, experts say.
Most enterprises of this profile are located in just a few regions of Russia: Kaliningrad, Omsk, Lipetsk, Krasnodar, Altai, Kursk, Oryol, Bashkortostan.
In total, up to 80% of all factories are concentrated there.
This season, the rapeseed harvest is expected to be up to 4 million tons, which is a very good value, only slightly less than last year’s record. Therefore, it is very important that oil processing facilities do not stand idle.
Are there any exceptions to the ban?
First of all, it does not apply to the states that are members of the EAEU: rapeseed can be sent to these countries quite calmly.
The Chinese also achieved an exception: in 2022, they were concerned about such a ban, as a result, they managed to agree that exports through Zabaikalsk would also continue.
According to representatives of the PRC, this is important in order to maintain the country’s food security.
In general, over the first 6 months of this year, Russia doubled the export of rapeseed oil, up to 840 thousand tons, meal — 3.5 times, up to 420 thousand tons.
First of all, the importer is just China, as well as other friendly countries.
