Poor rapeseed crop forces EU refiners to boost imports

A poor winter planting and one of the worst droughts in Europe’s history is affecting the rapeseed crop, making it difficult for European Union refiners to meet biofuel demand.   In Europe, rapeseed as feedstock accounts for 80% of biodiesel production.  Analyst David Eudall of the United Kingdom’s Home Grown Cereals Authority says the poor crop could cut Europe’s rapeseed crop yield by 1.5 million metric tons to 19 million tons for the 2011-2012 season.  EU regulations mandating the use of biofuel will keep demand strong, so Eudall states the refiners will have to boost imports to make up for the domestic shortfall.  German refiners have been hit the hardest.  Germany is the European Union’s largest rapeseed grower.  Toepfer International, a grain merchant, says the rapeseed harvest will fall to 4.5-4.8 million tons this year. Eudall forecasts that imports of rapeseed from Australia will increase 800,000 tons per year to approximately two million tons.  Ukraine and Russia will also be increasing exports of rapeseed. (June 3, 2011)