Market Trends of north america oilseed Industry (seed for sowing)
Soybean occupied the major share of oilseed acreage, with growth potential toward canola and sunflower in Canada and Mexico, respectively
- North America is a significant global producer of oilseeds, primarily due to its favorable climate conditions. In 2022, oilseed crops covered 28.8% of the total cultivated area, spanning 49.8 million hectares. However, compared to 2017, there was a decrease in oilseed cultivation in 2018 and 2019 by 3.3% and 15%, respectively, due to the decline in soybean cultivation. This reduction was driven by China's trade restrictions, which reduced global demand for US varieties of soybeans, leading to lower soybean prices. Additionally, heavy spring rains in 2019 further contributed to the decline in soybean cultivation.
- The United States was the largest country in the region, which accounted for 75.3% in 2022, with 37.5 million hectares. Soybean was the major crop in the region, with 94.1% of the oilseed acreage in 2022. The higher share of soybeans was because of the approval of transgenic soybeans and higher returns for farmers owing to their demand for edible oil and protein concentrate for livestock feeding.
- Canada had an area of 11.8 million hectares under the cultivation of oilseeds segment in 2022, of which 77.4% of the acreage was occupied by canola. Canada is the largest producer of canola in the world. The demand for canola as vegetable oil and feed is anticipated to drive the area under canola cultivation during the forecast period. However, in Mexico, other oilseeds such as safflower, castor, and linseed have a major share. The area under safflower cultivation has increased because of the demand for its oil and the shift from cotton to oilseeds, as GM cotton is banned.
- Therefore, the increase in the number of edible oil and feed applications is driving the area under oilseed cultivation in the region.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing adoption of disease-resistant and high oil-content soybean varieties in the region is driving the market
- Transgenic breeding methods dominated the market as they improved the nutritional and technological qualities of oil crops
