Navigating oilseed production

DR ERHARD BRIEDENHANN
Editor's note

South Africa is expected to produce a soya bean crop nearing three million tonnes in a typical rainfall season. The introduction of improved seed technology and germplasm should assist in achieving higher yields. South Africa boasts the highest rate of yield improvement in soya bean production in the world. In addition, the gap between commercial yields and those from national cultivar trials is closing, indicating that improved farming practices and agronomy are also making a meaningful contribution to improved yields.

The number of first-time producers planting soya beans in recent years, who will gain experience over time, should assist in improving average yields in the country. Crop rotation between maize and soya beans will continue and possibly expand in the west, as soya beans are more profitable than maize in most regions.

Profitability presents challenges

The profitability of soya bean and grain production has become more challenging given the low commodity price cycle we are in. To remain economically viable, the focus must be on improving productivity. Currently, soya beans are trading closer to import parity than export parity. However, this will change once crop conditions normalise, possibly with a crop exceeding 2,7 million tonnes, which will result in lower producer prices.

The export markets that have been opened for soya beans in Malaysia, China, Vietnam, Bangladesh, and Thailand are extremely important to South Africa, as production is likely to increase faster than the sluggish demand.

Optimising logistics

Logistics remain one of the keys to unlocking our supply chain productivity. Improving the transport of soya bean meal to the Western and Eastern Cape, with a focus on using more rail and less road, can help to reduce costs. Overcoming harbour challenges, especially at the Port of Durban where we compete for space with many other grains, is essential.

Positive canola prospects

All indications are that despite late rainfall in many regions of the Western Cape, the number of canola hectares planted remains positive. Excessive rainfall is unfortunately likely to have a negative effect on the anticipated record canola crop. European canola prices are looking favourable compared to other oilseeds.

Enjoy this issue of Oilseeds Focus.