7/3/06    AMSTERDAM (Reuters) - Booming production of biodiesel in the European Union has sharply raised demand for vegetable oils, turning the bloc into a net importer of rapeseed oil and soyoil, Hamburg-based industry publication Oil World said on Tuesday.

   "The EU has become by far the largest importer of oils and fats in the world and imports may accelerate to a new high of 8.9 million tonnes in October/September 2005/06".

   EU domestic production of vegetable oils was not able to meet growing demand, which was expected to boost the bloc's net imports of 17 oils and fats by almost 1.4 million tonnes in 2005/06, Oil World said.

   "For the first time in recent history the EU has turned into a net importer of rape oil and soya oil."

   Oil World estimated EU oils and fats consumption at 25.1 million tonnes in 2005/06, up by 8 percent from the previous season and 17 percent from 2003/04.

   Strong demand had kept European prices of vegetable oils unusually high, it said.

   "About 95 percent of the current demand growth is due to booming consumption of oils and fats for biofuels, primarily for the production of biodiesel."