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Europe Daily Bulletin No. 9476
Contents Publication in full By article 24 / 36
GENERAL NEWS / (eu) eu/agriculture

Areas under rapeseed increase to meet need for bio-diester

Brussels, 25/07/2007 (Agence Europe) - According to Eurostat estimates published on Tuesday 24 July, areas under rapeseed have increased considerably this year (+13.6% compared to 2006, +31.5% compared to the average of the past five years) in response to the large demand for bio-energy, especially bio-diester. Surface areas under cereal crops have increased by 1.5% while those planted with sugar beet continue to decrease (-2.9%).

Rapeseed. The increase in crude oil prices and the policies to encourage the production and use of biofuels such as bio-diester, which is produced using rapeseed, have lead to an increase in the areas under rapeseed: +31.5% relative to the 2002-2006 average, +13.6% compared to 2006, i.e. an EU area exceeding 6 million hectares.

Given its planted area, rapeseed is the fourth most important crop by area in the EU, after wheat, maize and barley. The largest producers of rapeseed, France, Germany and Poland, are estimated to have increased their areas under rapeseed by 11% (to 1.5 million hectares), 7% (to 1.5 million hectares) and 8% (to 674,000 hectares) respectively. Romania is estimated to have tripled its area under rapeseed to 349,000 hectares. Denmark, Hungary and Slovakia are expected to increase their areas by 65% (to 184,000 hectares), 56% (to 223,000 hectares) and 19% (to 147,000 hectares) respectively.

EU rapeseed production is estimated to reach 17.6 million tonnes in 2007, that is, an increase of 11.3% in comparison to 2006 and 27.3% relative to the 2002-2006 average. The average EU yield decreased by 2.1%, so that the production increase is due to the increase in the area under rapeseed.

Cereals. Areas under cereals increased slightly, +1.5% in comparison to 2006 (to 57.9 million hectares). This increase is probably related to high prices on the cereals market. The production of cereals in the EU is expected to reach 281 million tonnes, a rise of 5.2% relative to 2006. The average yield is estimated to reach 48.6 quintals per hectare, compared to 46.8 in 2006. These production and yield estimates are likely to be revised downwards given the difficult weather conditions in some member states (in particular for grain maize production). (See EUROPE 9475 for the lower Commission estimate of 276 million tonnes.)

Sugar beets. Reform of the sugar sector in 2005 is having an effect: sugar beet sown surfaces could be reduced by 2.9% in the EU compared to the 2006 level (-12.6% compared to the 2002-06 average) and fall to less than 2 million hectares. Nonetheless, France, the biggest sugar beet producer may increase its sowing surfaces slightly (+3%) to 392,000 hectares. Decreases are significant in Hungary

(-24%), in Spain (-13%) and Denmark (-8%). Sugar beet production for 2007 in the EU is estimated to be 117.8 million tonnes, a fall of 7.3% compared to the 2002-06 average but a 13.4% increase on 2006 figures. (lc)

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