Israel Oilseeds and Products Annual

An Expert's View about Crops and Support Services in Israel

Posted on: 11 Aug 2010

Soy, corn, canola, olive and sunflower oils are all produced in Israel. Approximately 85 percent of local vegetable oil consumption is from local production, and the remainder is imported.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 5/20/2010 GAIN Report Number: IS1006 Israel Oilseeds and Products Annual Annual Report Approved By: Cynthia I. Guven Senior Agricultural Attache U.S. Embassy , Cairo Prepared By: Gilad Shachar Agricultural Marketing Specialist Report Highlights: Israel is completely dependent on imports of soybeans to meet its feed needs. Soybean imports in MY 2009/10 are estimated to remain at about 540 tmt. Due to high supplies of soybeans from South American countries, mainly Brazil, the U.S. market share of soybeans is expected to decrease slightly from 39 percent in MY 2008/09 to 34 percent in MY 2009/10 but to rebound back to 2008 levels in 2010/2011. Post estimates the U.S. share of soybeans is projected to remain at 28-45 percent in the forthcoming years, while the remainder is being supplied mainly by Brazil and Argentina. Soy meal and sunflower meal are the main meals used in local poultry, dairy and cattle farms in Israel. In recent years, sunflower meal imports (mainly from Ukraine) have increased significantly and this trend is expected to continue. In MY 2008/9 U.S. soybean meal imports reached a record high (86,000 tons); however it is estimated that South American (mainly Argentina) soy meal market share in MY 2009/10 and 2010/2011 will increase significantly leaving the American share at 20 and 35 tmt respectively. Executive Summary: Despite the global and local economic slowdown, soybean imports in MY 2008/09 (October 2008 through September 2009) remained at last year?s levels (540 tmt). Competitive prices of soybeans from South America combined with complaints from local importers that U.S. soybeans contain lower protein and oil levels compared to Brazilian soybeans, caused decreased soybean imports from the US, whose market share for soybean decreased in MY 2008/09 from 56 percent share to 39 percent share. During the first five months of MY 2009/10 (October 2009 - February 2010) soybean imports decreased by 42 percent (from 194 TMT to 113 TMT), compared to the same period in MY 2008/09. However, post is expecting the pace to increase significantly during the rest of MY 2009/10 as Brazilian, Argentine and Paraguayan soybean exports should increase and catch up to last year?s level of 540 tmt. Due to high supplies of soybeans from South American countries, the U.S. market share of soybeans is expected to decrease to 34 percent in MY 2009/10. Due to forecasts that the local and global economic environment will continue to improve combined with the projected increase in domestic annual population growth, soybean import levels are forecast to rise 10 percent in 2010/2011. Sunflower meal and soy meal are the main meals imported to Israel. Due to higher supplies of sunflower meals (mainly from Ukraine) combined with U.S. soybean meal imports reaching a record high (86,000 tons) in MY 2008/2009, imports of all oil meals in MY 2008/09 increased by 56 percent (from 219 tmt to 342 tmt). The increase in imports of U.S. soy meal in MY 2008/9 was due to high prices of South American soybean meals combined with strikes in Brazil and Argentina (Argentina's farmers strike and Brazil?s strike action by customs). Data for the first 5 months of MY 2009/10 show total oil meal imports decreased by 39 percent (from 149 TMT to 91 TMT), compared to the same period in the previous year. The decrease is mainly due to the drop in American soy meal imports. However, post expects the pace of total imports to increase during the rest of MY 2009/10 as Brazilian and Argentine soy meal exports increase and sunflower meal imports from Ukraine and Russia should also rise. Post estimates that total meal imports in MY 2009/2010 and MY 2010/2011 will be slightly below MY 2008/2009 levels. Data for the first 5 months of MY 2009/10 reveal that American oil meal market share has decreased significantly compared to the same period one year ago (from 38 percent share to 14 percent share). Post estimates that the U.S. oil meal share will continue to decline from 25 percent in MY 2008/09 to 5 percent in MY 2009/10 and 2010/2011. Soy, corn, canola, olive and sunflower oils are all produced in Israel. Approximately 85 percent of local vegetable oil consumption is from local production, and the remainder is imported. The industrial sector consumes about 80,000 tons of vegetable oil annually, of which soy oil is in highest demand. The household sector consumes about 56,000 tons of vegetable oils per year, of which canola and olive oils are the most demanded. In recent years, demand for canola oil has increased significantly both by the industrial and household sectors. As a result of the local economic slowdown, it is estimated that vegetable oil imports decreased slightly in MY 2008/09 (by quantity). However, due to the improved local economic situation, post estimates that oil imports in MY 2009/10 will increase 10 percent compared to the previous MY. On the other hand, soybean imports are forecast to increase by 10 percent in MY 2010/11, therefore local production of soybean oil will increase, and as a result, total oil imports will likely remain at or slightly below MY 2009/10 levels. Commodities: Oilseed, Soybean Oilseed, Sunflowerseed Oilseed, Rapeseed Production: No oilseeds are produced for crushing. In MY 2008/09, confectionary sunflower seed production totaled about 15,000 tons, of which about 11,200 tons (75 percent) were exported, primarily to Spain and the remainder consumed in the local market. Also in 2008/09, about 16,000 tons of peanuts were produced, of which about 11,000 tons (70 percent) were exported to the EU. Sunflowers - As a result of the increased world sunflower prices in recent months, post forecasts that local sunflower production in 2010 will increase by 10 percent compared to 2009 harvest. In MY 2009/10 and MY 2010/11, sunflower planted area is expected to reach 9,500 hectares with a production of 16,000 tons. Peanuts ? Post estimates that peanuts production will total about 16,000 MT, in MY 2009/10 and MY 2010/11 unchanged from the previous year. Planted area for peanuts is forecast at 3,500 ha for both years. The Negev region (southern part of Israel) is the largest peanuts growing area in the country. In recent years local peanuts and sunflower production are relatively stable and are not estimated to change significantly in the forthcoming years. Israel: Total Oilseeds MY 2008/09 Soybean Canola Peanuts Sunflower Total Area 0 0 3.5 9 12.5 Harvested Production 0 0 16 15 31 Crush 510 2 539 Imports 539 0 0 566 Exports 0 11 11 22 (confectionary (confectionary sunflower peanuts) seeds) MY 2009/10 Soybean Canola Peanuts Sunflower Total Area 0 0 3.5 9.5 13 Harvested Production 0 0 16 16 32 Crush 517 0 3 560 Imports 540 0 0 580 Exports 0 11 11 22 (confectionary (confectionary sunflower peanuts) seeds ) MY 2010/11 Soybean Canola Peanuts Sunflower Total Area 0 0 3.5 9.5 13 Harvested Production 0 0 16 16 32 Crush 563 0 3 606 Imports 594 0 0 634 Exports 0 11 11 22 (confectionary (confectionary sunflower peanuts) seeds) ** All data in 1,000 hectares and 1,000 metric tons Consumption: In CY 2009, local production of broilers remained at 2008 levels (455,000 tons) even though forecasts made in March 2009 predicted that broiler production would experience a 10 percent decrease due to the economic slowdown. The negative effects on the Israeli economy were much less than were predicted; therefore, local production did not decrease. However, the Israeli economy did experience a slight slowdown causing broiler meat consumption per capita to decrease by 1.8 percent in 2009 (annual population growth rate is 1.8 percent). In recent years local turkey production has declined (nearly 17 percent in CY 2009) due to changing consumer preferences, which consider broiler meat tastier than turkey meat. (See chart 2). Milk production in CY 2009 increased by 1 percent compared to 2008, instead of the 7 percent decrease that was forecasted in March 2009. The negative effects on the Israeli economy were much less than predicted; therefore, local milk demand did not decrease. Post estimates that soybean use will remain at current levels in MY 2009/10 and will increase by 10 percent in MY 2010/11. The increase in MY 2010/11 is forecast as the local and global economic environments continue to improve and the Israeli population grows. As a result of the above mentioned reasons, per capita local consumption and exports of broiler and meat products are expected to increase. Therefore, soybean use is forecast to increase by about 10 percent in MY 2010/11. Chart 1: Local Broiler Meat Production, CY, Thousand tons Source: Israeli Farmer?s Federation Chart 2: Local Turkey Meat Production, CY, Thousand tons Source: Israeli Farmer?s Federation Trade: Exports Only confectionary peanuts and confectionary sunflower seeds are exported. About 11,200 tons of confectionary sunflower seeds were exported in CY 2009. As a result of the recession in the EU and especially in Spain (Israel?s primary destination for sunflower seeds), combined with inconsistent quality of Israeli confectionery sunflower seeds (the size and color are not homogeneous), exports of Israeli confectionary sunflower seeds to Spain decreased by about 10 percent in the last two years. Israel?s main confectionery sunflower seeds competitors in Spain are China, Argentina and the U.S. Peanut exports are relatively small and stable. Italy and Germany are the primary destination for Israeli peanut exports. In 2008 peanuts exports totaled about 10,500 MT (in shelled), valued at $23.2 million (see table 2). Despite of the economic slowdown in the EU, exports of peanuts in CY 2009 remained at the same level. Table 1: Exports of Confectionary Sunflower Seeds, CY 2008, $ Thousands Destination Value Market Share -% Spain 13,707 86.4 U.S. 1,167 7.3 Romania 744 4.7 Others 245 1.6 Total 15,863 100 Source: CBS, Foreign Trade Statistics. Table 2: Exports of Peanuts (in shelled), CY 2008, $ Thousands Destination Value Market Share -% Italy 16,101 69.3 Germany 4,095 17.6 Switzerland 1,686 7.3 Others 1,334 5.8 Total 23,216 100 Source: CBS, Foreign Trade Statistics. Imports MY 2008/09 ? Despite the global and local economic slowdown, local feed demand did not decrease in marketing year 2008/09 (October 2008 - September 2009), and soybean imports totaled 539 tmt, unchanged from the previous MY (540 tmt). On the other hand, in CY 2009, soybean imports decreased by nearly 7 percent compared to CY 2008 and reached a six-year low record, with 496 tmt. The continued decrease in recent years in soybean imports is mainly due to significantly higher imports of other protein sources, such as sunflower meal, DDGS and gluten feed. The slight decrease in broiler meat consumption per capita and the continued decrease in turkey meat consumption also contributed to lowering imports. Importers favored Brazilian over U.S. soybeans because of the higher protein and oil levels of the South American soybeans. As a result, U.S. soybean imports decreased by 30 percent and accounted for only 39 percent of the market. However, U.S. soybeans are still a major player in the local soybean industry. MY 2009/10 Estimates ? It is estimated that soybean imports in 2009/10 will remain relatively constant at about 540 tmt. Israeli importers will continue to import large quantities of South American soybeans. Data for the first five months of marketing year 2009/10 (October 2009- February 2010) show soybean imports decreased by nearly 42 percent from the same period one year ago (from 194 tmt to 113 tmt); however, post expects the pace to increase significantly during the rest of MY 2009/10. Although the U.S. market share for soybeans increased 45 percent in the first five months of 2009/2010, compared to the same time period one year ago (from 40 percent market share to 58 percent market share), Israeli importers report that imports from the U.S. will not continue at this pace because U.S. soybeans contain lower protein and oil levels compared to those from Brazil and as the new South American crop becomes available. Therefore, it is estimated that American soybean imports in 2009/10 will decrease slightly and Brazil will take over part of the American market share. U.S. market share of soybeans in Israel is expected to decrease to 34 percent in MY 2009/10. MY 2010/11 Forecast - The Israeli feed milling industry shifts easily from corn, barley, sorghum and other protein sources (sunflower meal, DDGS and gluten feed) to feed wheat and soybeans depending on price relationships. If the global and domestic economic environment continues to improve and prices for sunflower meals and other protein sources increase while soybean prices drop, total Israeli soybean imports are forecast to rise about 10 percent and reach 590 tmt in MY 2010/11. In recent six marketing years, annual soybean imports ranged from 534 tmt to 681 tmt; therefore, average soybean imports during this time period are 573 tmt. The U.S. market share for soybeans ranged from 24 to 56 tmt per MY, averaging 37 percent. Therefore, imports in MY 2010/2011 are forecast to be slight above average. If U.S. soybeans will continue to contain lower protein and oil levels compared to those from Brazil combined with continued high supplies of Brazilian soybeans, therefore, the American market share in 2010/11 is forecast to remain at about 37 percent. In the future, the U.S. is forecast to maintain 28-45 percent market share, with Brazil Argentina, Paraguay and Uruguay supplying the bulk of the soybean imports. Post estimates that soybean imports are forecast to be at 530,000-610,000 tons in the forthcoming years. Chart 3: Import of Major Feedstuff [1] , Soybean, Oil Meals, DDGS & Gluten, CY Source: Israeli Ministry of Agriculture Chart 4: Major Feedstuff and Soybean Import to Israel, Market Share, CY Source: Israeli Ministry of Agriculture Table 3: Imports into Israel of Oilseeds, Oil Meals and Other Protein Sources, MY[2] , Thousand Metric Tons MY Soybean Feed Total s Meals Rapeseeds Gluten & DDGS Import 2003/04 570 255 41 156 1,022 2004/05 681 222 37 143 1,083 2005/06 534 288 47 88 957 2006/07 576 405 48 246 1,275 2007/08 540 219 27 424 1,210 2008/09 539 342 27 348 1,256 Average 573 289 38 234 1,134 2008/09 (5 months) 194 149 10 161 514 2009/10 (5 months) 113 91 27 116 347 2009/10 % Change Compared to the Same Period One Year -42% -39% 170% -28% -33% Ago Source: Ministry of Agriculture, Office of Prices and Supply Table 4: U.S. Soybeans, Meals and Other Protein Sources Imports to Israel, MY, Thousand Metric Tons MY Total Import Soybeans Meals Rape Glutenseeds Feed & From the U.S. DDGS 2003/04 163 35 8 149 355 2004/05 163 5 0 136 304 2005/06 191 0 0 88 279 2006/07 206 75 0 228 509 2007/08 304 0 0 356 660 2008/09 212 86 0 327 625 Average 207 34 1 214 455 2008/09 77 57 0 149 283 (5 months) 2009/10 66 13 0 116 195 (5 months) 2009/10 % Change Compared to the Same -14% -77% 0% -22% -31% Period One Year Ago Source: Ministry of Agriculture, Office of Prices and Supply Table 5: U.S. Share Out of Total Soybeans, Meals and Other Protein Sources Imports, Percent MY Soybeans Meals Rapeseeds Gluten Feed & DDGS 2003/04 28.6 13.7 19.5 95.5 2004/05 23.9 2.3 0 95.1 2005/06 35.8 0.0 0 100.0 2006/07 35.8 18.5 0 92.7 2007/08 56.3 0.0 0 84.0 2008/09 39.3 25.1 0 94.0 Average 36.6 9.9 3.2 93.6 2008/09 39.7 38.3 0 92.5 (5 months) 2009/10 .4 14.3 0 100 (5 mon 58ths) 2009/10 % Change Compared to the Same Period One Year Ago 47.1% -62.7% 0% 8.1% Source: Ministry of Agriculture, Office of Prices and Supply Import Trade Matrix, Soybean The following table summarizes Israeli soybean imports. Import Trade Matrix Israel Oilseed, Soybean (TMT) Time Period: CY Imports for: 2008 2009 U.S. 279 U.S. 216 Others 0 Others 0 Total for Others 0 Total for Others 0 Others not Listed 252 Others not Listed 280 Grand Total 531 Grand Total 496 [1] Corn, feed wheat, barley, sorghum [2] October - September Marketing: Prices The local price for confectionary sunflower seeds has increased about 20 percent in recent months and currently it stands at around NIS 6,000 ($1,600 [1] ) per ton. [1] Exchange Rate - $1=NIS3.75 Production, Supply and Demand Data Statistics: PSD Table Israel Oilseed, Soybean 2008 Revised 2009 Estimate 2010 Forecast USDA Post New USDA Post New USDA Post New O Estimate Post Estimate Post fficial Da Official ta Da Officia Estimate Post l ta Data Market Year Begin 10/2008 10/2009 10/2010 Area Planted 0 0 0 0 0 0 0 0 Area 0 0 0 0 0 0 0 0 Harvested Beginning 28 29 28 20 28 34 20 31 Stocks Production 0 0 0 0 0 0 0 0 MY Imports 326 490 539 450 550 540 450 594 MY Imp. from 167 100 212 320 170 185 320 220 U.S. MY Imp. from 0 0 0 0 0 0 0 0 the EC TOTAL SUPPLY 354 519 567 470 578 574 470 625 MY Exports 0 0 0 0 0 0 0 0 MY Exp. to the 0 0 0 0 0 0 0 0 EC Crush Dom. 310 470 510 423 524 517 423 563 Consumption Food Use Dom. 16 13 15 17 15 16 17 17 Consump. Feed, Seed, Waste 8 8 8 10 10 10 10 11 Dm.Cn. TOTAL Dom. 334 491 533 450 549 543 450 591 Consumption Ending Stocks 20 28 34 20 29 31 20 34 TOTAL 354 519 567 470 578 574 470 625 DISTRIBUTION Calendar Year 300 531 495 450 500 515 450 570 Imports Calendar Yr 161 279 216 320 155 185 320 195 Imp. U.S. Calendar Year 0 0 0 0 0 0 0 0 Exports Calendar Yr 0 0 0 0 0 0 0 0 Exp. to U.S. Commodities: Meal, Soybean Meal, Sunflowerseed Meal, Rapeseed Production: Oil meal production is primarily for the poultry sector. It is limited by crushing capacity and complemented by imports. Local oil meal demand is forecast to remain relatively stable at about 780 thousand tons in the next few years, while local production will be about 470 thousand tons. In MY 2009/10, local soybean meal production is forecast to be unchanged compared to the previous MY and will total about 4 tmt. However, due to the expected increase in soybean imports in MY 2010/11, local soybean meal production in MY 20010/11 is forecast to increase by about 10 percent to tmt. Local oil meal production is mainly of soy meal, and the rest is canola meal. Local canola oil meal production in MY 2009/10 is forecast to increase by about percent compared to the previous year and will total tmt. The increase is mainly due to increased local consumption of canola oils. In MY 2010/11, canola oil meal is forecast to be unchanged compared to MY 2009/10. Three processing plants produce oil meals in Israel. Local crushers can produce 44 percent and Hi Pro soy meals (48 percent). MY 2008/09 marked the third consecutive year that out of total local soy meal production most of production was 48 percent. This trend is expected to continue in the next years. Local crushing plants cannot satisfy the growing demand for Hi-Pro meal and shortage is satisfied by imports. Out of total soy meal consumption in CY 2009 (about tmt), 12 percent (61 tmt) was imported. Ukrainian and Russian sunflower meal exports to Israel have increased in the last four years due to the relatively low price of sunflower meal compared to other oil meals. It is estimated that sunflower meal imports in CY 2009 increased by about 30 percent from last year at the expense of canola meal imports and DDG?S and gluten feed imports. Israel: Total Oilmeals MY 2008/09 Soybean Sunflower Canola Total Crush 510 0 27 537 Production 413 0 16 429 Imports 86 246 4 332 Exports 0 0 0 0 MY 2009/10 Soybean Sunflower Canola Total Crush 5 0 Production 0 Imports 0 3 Exports 0 0 0 0 MY 2010/11 Soybean Sunflower Canola Total Crush 0 Production 0 Imports 0 15 Exports 0 0 0 0 ** All data in 1,000 metric tons Trade: Exports No exports of oil meals or feed were recorded in MY 2008/09 and this situation is not expected to change in the future. Approximately 7 percent of Israeli feed mix sales are to the Palestinian Authority (PA), mainly for poultry, sheep and goats. Imports Soybean meal - Local companies import high protein meal with 48 percent protein from the U.S. and Brazil. In addition, the companies import 46 percent protein meals from Argentina. MY 2008/09 ? In MY 2008/09, due to higher supplies of sunflower meals mainly from Ukraine, combined with U.S. soybean meals imports reaching a record high, imports of all kinds of oil meals increased by 56 percent compared to the previous MY (from 219 tmt to 342 tmt). In MY 2008/09, imports of U.S. soybean meals reached a record high, with 86,000 tons (0 tons in the previous MY), and with a 25 percent market share (out of all kinds of oil meals). CY 2009 - In CY 2009, imports of all kinds of oil meals increased 24 percent from CY 2008 (from 243 tmt to 302 tmt). Out of the total oil meals imports in CY 2009, approximately 235,000 tons (78 percent) was sunflower meal, 61,000 tons (20 percent) soybean meal, and the remainder was canola meal (6,000 tons). Sunflower meal was imported mainly from Ukraine, and the rest was imported from Russia. Canola meal was imported primarily from Belgium. In CY 2009, due to high prices of South American soybean meals combined with strikes in Brazil and Argentina (Argentina's farmers nation-wide strike and Brazil?s strike by customs workers), Israeli importers imported soybean meals only from the U.S. In CY 2009, the U.S. share out of all kinds of oil meals reached a six-year record with a 20 percent market share. MY 2009/10 Estimate ? Data for the first 5 months of 2009/10 (October-February) show total oil meal [1] imports decreased by 39 percent from the same period one year ago (from 149 tmt to 91 tmt). Most of the decrease is in U.S. soy meals; however, post expects the pace to increase during the rest of MY 2009/10 as Brazil and Argentine soy meal exports and Ukrainian and Russian sunflower meal exports are expected to increase. Total oil meal imports will likely remain at or slightly below MY?s 2008/09 levels. Data for the first 5 months of 2009/10 reveal that American oil meal market share has decreased significantly compared to the same period one year ago to only 14 percent. As the new South American crop becomes available, crushers will purchase mostly Argentine and Brazilian soy meal for the remainder of the marketing year. MY 2010/11 Forecast ? If DDGS, gluten feed and other feed ingredient alternatives imports continue to increase, total oil meal imports will decrease by about 10 percent compared to MY 2009/10,totaling about 300 tmt. However, it is forecast that sunflower meal imports will continue to be a major competitive feedstuff ingredient if its prices continue to be relatively low compared to other feed ingredient alternatives. On the other hand, if soybean prices will increase total oil meal imports may go back up to MY 2008/09 levels. In recent 6 marketing years oil meal imports ranged from 219 tmt to 405 tmt per MY, averaging 289 tmt per year. Therefore, 2010/2011 total meal imports are forecast to be above average. Import Trade Matrix, Meal Import Trade Matrix Israel Meal, Soybean (TMT) Time Period: CY Imports for: 2008 2009 U.S. 40 U.S. 61 Others 0 Others 0 Total for Others 0 Total for Others 0 Others not Listed 40 Others not Listed 0 Grand Total 80 Grand Total 61 [1] Soy meal, sunflower meal and canola meal. Policy: Trade Policy In November 2009 Israel and the European Commission signed the renewed and expanded FTA on agricultural products and processed food products The agreement came into effect in January 2010. According to the agreement, the EU received a quota for tax-free imports of 5,220 tons of soy meal. Out of quota EU soy meal imports face a 7.5 percent tariff, while U.S. soy meal exports face a smaller tax burden compared to the exports of soy meals from other origins (see table 7). Table 6: New FTA between the EU and Israel, Imports into Israel HS Code Description Reduction of the Tariff Reduction of the MFN MFN customs quota customs duty beyond duty (%) (tons) current tariff quota (%) 2304 Soy Meal 100 5,220 ? 23063000 Oilcake and other Applicable duty : 10,000 ? solid residues 2.5 % 230641 Rape seed meal Applicable duty : 3,920 ? 4.5 % Table 7: Tariffs on Soy Meals, Percent Soy Meal US Other Countries 4.5 7.5 Marketing: Soybean Meal Prices From March 2009 through March 2010, soy meal (44%) prices increased 7 percent. The changes were dictated by the price for soybeans in the Chicago Board of Trade (CBOT). Table 8: Prices for Feed Grains, Oilseeds and other Protein Sources, $ Per Ton (at the feed mill gate) March February March % Change March 2010 2010 2010 2009 Compared to March 2009 Corn $228 $228 $205 11.2% Feed Wheat $198 $202 $195 1.5% Barley $178 $182 $205 -13.2% Soy Meal (44%) $440 $480 $410 7.3% Sunflower Meal $273 $275 $205 33.2% (37%) Canola Meal $280 $295 $275 1.8% D.D.G $270 $275 $225 20.0% Gluten Feed $220 $220 $210 4.8% Source: Israeli Cattle Breeder?s Association Production, Supply and Demand Data Statistics: PSD Table Israel Meal, Soybean Revise Estima Foreca 2008 d 2009 te 2010 st UOM USDA Post Post USDA Post Post USDA Post Post O Estima Estima Estima Estimaffici Offici Offici Estima Estima te te te te te te al New al New al New Marke t Year 10/20 10/20 10/20 MM/YYY Begin 08 09 10 Y 310 470 510 423 524 517 423 563 (1000 Crush MT) Extr. 1. 1. 0.8098 1. 1. 0.8085 1. 0.8117 Rate, 999.999 (PERCE 9 NT) Beginnin 12 9 12 12 9 16 12 14 (1000 g Stocks MT) Producti 247 400 413 337 460 418 337 457 (1000 on MT) MY 84 130 86 80 100 90 80 70 (1000 Imports MT) MY Imp. 84 65 86 50 45 20 50 from (1000 U.S. MT) MY Imp. 0 0 0 0 0 0 0 0 (1000 from EU MT) Total 343 539 511 429 569 524 429 541 (1000 Supply MT) MY 4 0 0 3 0 0 6 0 (1000 Exports MT) MY Exp. 1 0 0 1 0 0 1 0 (1000 to EU MT) Industria 0 0 0 0 0 0 0 0 l Dom. (1000 Cons. MT) Food 0 0 0 0 0 0 0 0 Use Dom. (1000 Cons. MT) Feed 327 530 495 414 560 510 411 W 528 aste Dom. (1000 Cons. MT) Total 327 530 495 414 560 510 411 528 Dom. (1000 Cons. MT) Ending 12 9 16 12 9 14 12 13 (1000 Stocks MT) Total 343 539 511 429 569 524 429 541 Distributi (1000 on MT) CY 67 80 65 80 95 90 80 95 (1000 Imports MT) CY Imp. 57 40 61 50 40 25 50 35 from (1000 U.S. MT) CY 2 0 0 5 0 0 6 0 (1000 Exports MT) CY Exp. 0 0 0 0 0 0 0 0 (1000 to U.S. MT) 327 530 495 414 560 510 411 528 (1000 SME MT) Commodities: Oil, Soybean Oil, Rapeseed Production: Soy, canola, olive and sunflower oils are produced in Israel, and production is growing slightly to keep pace with moderately rising demand and trends in soy crush. Israel: Total Main Oils MY 2008/09 Soybean Canola Total Crush 510 27 537 Production 12 Imports 8 2 10 Exports MY 2009/10 Soybean Canola Total Crush 5 Production 17 Imports 10 2 12 Exports 2 4 MY 2010/11 Soybean Canola Total Crush Production 17 Imports 9 2 11 Exports ** All data in 1,000 metric tons Consumption: Approximately 85 percent of local vegetable oil consumption is from local production, and the remainder is imported. There are 2 main markets for oil: the industrial sector and households. It is estimated that the industrial sector consumes about 80,000 tons of vegetable oil annually, of which soy oil is the most demanded oil (about 85 percent market share). It is estimated that the households sector consumes about 56,000 tons of vegetable oils per year. In recent years, household sector consumption of vegetable oils increased modestly, in line with population growth. However, in recent years consumption of canola oil increased significantly on the account of soy oil consumption. In addition, olive oil consumption increased at a steady pace at about 5 percent annually and currently the local olive oil consumption is estimated at about 16,000 tons per year, of which about 5,000-9,000 tons is from local production, and the remainder is imported. The inconsistent local olive oil harvest is a result of the ?fluctuations phenomenon?, an exceptional low yield that occurs once every 2-3 years. Trade: Imports As a result of the local economic slowdown it is estimated that vegetable oil imports decreased slightly in MY 2008/09 (by quantity). However, post estimates that due to the improved local economic situation, oil imports in MY 2009/10 are forecast to increase 10 percent compared to the previous year. Soybean and canola oilseeds imports are forecast to increase in MY 2010/11, therefore local production of soybean and canola oils is expected to increase by about 8 percent, and as a result total oil imports will likely remain at or slightly below MY?s 2009/10 levels. Total vegetable oil imports represent approximately 15 percent of local oil consumption. Soy oil is imported mainly from South America (Argentina & Brazil), while some is imported from the U.S. Canola oil is imported primarily from Belgium. Palm oil is imported from Malaysia and Indonesia, only for the industrial sector. Policy: Trade Policy In the renewed free trade agreement on agricultural products and processed food products signed between the EU and Israel, there are quotas for tax-free imports of vegetable oils. In addition, U.S. and EU exports face a smaller tax burden compared to the exports from other countries (see table 10). Table 9: New FTA between the EU and Israel, Imports into Israel HS Description Reduction of the Tariff Code MFN customs duty quota (%) (tons) 1507 ** Soya bean oil, whether or not degummed, 100 5,000 10 10 edible 1507 90 10 1509 Olive oil, virgin 100 300 10 Olive oil, other than virgin, edible 1509 90 30 1509 Olive oil, other than virgin, other than edible 100 700 90 90 1512 Sunflower-seed, safflower or cotton-seed oil and 40 unlimited fractions thereof, whether or not refined, but not chemically modified, edible 1514 Rape, colza or mustard oil and fractions thereof, 40 unlimited whether or not refined, but not chemically modified, edible ** Above the 5,000 tons quota, imports of soy oil from the EU face a 4 percent tariff. Table 10: Tariffs on Oils, Percent Soy oil, Sunflower oil and Canola oil US Other Countries EU 4 7 Marketing: Prices The local annual average price for soy oil in the second half of CY 2009 decreased slightly (2.5% down) compared to the same period one year ago. It is estimated that imported oil prices were higher by an average of 5-15 percent compared to local oil prices. Table 11: Local Monthly Retail Average Price for Soy and Olive Oils Month Soy Oil ? 1 Liter Olive Oil ? 0.75 Liter 6/2009 $2.89 $11.20 7/2009 $2.96 $11.28 8/2009 $3.01 $11.17 9/2009 $2.93 $10.65 10/2009 $3.07 $10.94 11/2009 $3.06 $11.03 12/2009 $2.89 $10.71 1/2010 $3.01 $10.86 2/2010 $2.94 $10.79 Source: Price Statistics Monthly, CBS. Production, Supply and Demand Data Statistics: PSD Table Israel Oil, Soybean Revise Estima Foreca 2008 d 2009 te 2010 st UOM USDA Post Post USDA Post Post USDA Post Post O Estima Estimaffici O Estima Estimaffici O Estima Estimaffici te te te te te te al New al New al New Marke t Year 10/20 10/20 10/20 MM/YYY Begin 08 09 10 Y 310 470 510 423 524 517 423 563 (1000 Crush MT) Extr. 0. 0. 0.1784 0. 0. 0.1799 0. 0.1776 Rate, 999.999 (PERCE 9 NT) Beginnin 2 0 2 2 1 3 2 3 (1000 g Stocks MT) Producti 56 62 91 76 63 93 76 100 (1000 on MT) MY 10 14 8 10 14 10 10 9 (1000 Imports MT) MY Imp. 4 0 2 1 0 1 1 1 from (1000 U.S. MT) MY Imp. 4 2 0 4 2 0 4 0 (1000 from EU MT) Total 68 76 101 88 78 106 88 112 (1000 Supply MT) MY 1 1 1 1 1 2 1 2 (1000 Exports MT) MY Exp. 0 0 0 0 0 0 0 0 (1000 to EU MT) Industria 33 42 66 40 44 67 41 69 l Dom. (1000 Cons. MT) Food 32 32 31 45 33 34 44 36 Use Dom. (1000 Cons. MT) Feed 0 0 0 0 0 0 0 W 0 aste Dom. (1000 Cons. MT) Total 65 74 97 85 77 101 85 105 Dom. (1000 Cons. MT) Ending 2 1 3 2 0 3 2 5 (1000 Stocks MT) Total 68 76 101 88 78 106 88 112 Distributi (1000 on MT) CY 10 13 8 10 13 11 10 10 (1000 Imports MT) CY Imp. 5 0 2 1 0 2 1 2 from (1000 U.S. MT) CY 1 1 1 1 1 2 1 2 (1000 Exports MT) CY Exp. 0 0 0 0 0 0 0 0 (1000 to U.S. MT)
Posted: 11 August 2010

See more from Crops and Support Services in Israel

Expert Views    
Israel Oilseeds and Products Annual   By Foreign Agricultural Service
Grain and Feed Annual   By Foreign Agricultural Service
Israel Grain and Feed Annual   By Foreign Agricultural Service
Exporter Guide   By Foreign Agricultural Service