05/01/2005 - The international oils and fats industry will gather in Spainlater this year to tackle issues affecting the market.

Under the auspices of Edible Oils 05, trade is due to meet in Seville from21 to 21 September to examine the full product range of oils on themarket.

The organisers of the trade event, Survey, say they will pump €1.5 millioninto ensuring the fair ‘becomes a business hub for all companies whichproduce, process, package and/or commercialise edible oils and/or fats forconsumption or industrial use.’

Supplies for a range of vegetable oils used extensively by the foodindustry are slated to rise for 2004/05 year on stronger yields forpeanuts, soybeans and rape seed oil, building up global stocks to about390.5 million tons.

Rape seed, soybeans and peanuts are all experiencing strong market growthas food makers continue to turn away from animal fats in favour ofvegetable alternatives.

By 2008 analysts Business Communications Company predict these keyvegetable edible oils will account for 69.9 per cent of the US market.

US production of major crude vegetable oils is slated to reach 8.6 millionmetric tons in 2008, with soybean oil accounting for nearly 87 per cent ofthe major vegetable oil production at 7.4 million metric tons.

Today, soybean oil - together with palm oil - accounts for over half ofall oil consumed in the world. Rape seed also enjoys a strong share of themarket but in recent months supplies, and prices, have been severelyimpacted by a pulling of stocks from China and a dip in supplies due topoor harvests.

In each of the last four years world soybean production has fallen shortof consumption, forcing a draw-down of global stocks. Prices recently hit15-year highs although they have eased in recent weeks on growingsupplies.

But a recent WASDE report from the US department of agriculture confirmsincreased availability has brought some relief to the price of soybeans.

The vegetable oil market is undergoing some pressure from the market todesign trans fat free alternatives for food makers looking to slice theseartery-clogging fats out of formulations.

Trans fatty acids (TFAs) are formed when liquid vegetable oils go througha chemical process called hydrogenation.

Firms are already heeding the market opportunity for trans fat freeproducts. Dow AgroSciences, for example, the Indianapolis-based biotechsubsidiary of chemical giant Dow Chemical, recently introduced Natreoncanola oil, crushed from the high yield Nexera seed, as a ‘naturallystable alternative to partially hydrogenated oils’.