Oilseed farmers have seen revenue peak, plunge, and peak again before surging in 2010. The value of oilseed (excluding soybean) farming is currently at its highest, totalling an estimated $1.1 billion, says a new report from IndustryandMarkets.
Prices had been swept up in the soft commodities boom that was caused by global supply shortages in 2010 and early 2011. This pushed up revenue for Oilseed Farming by 35.8% in 2010, with an additional 3.8% expected through 2011.
Farmers in this industry grow a variety of oilseeds, including canola seeds, sunflower seeds and flaxseeds. Soybeans and cottonseeds are not included in this industry report.
While the value of oilseed production has grown strongly over the five years to 2011 - at an average annualized rate of 15.8% - these crops are increasingly being produced in mixed farming practices: much of the canola, sunflower, flaxseed and other oilseeds produced in the US are produced in conjunction with other crops.
This has resulted in a declining number of farms dedicated to producing just oilseeds from 782 in 2006 to an estimated 584 by the end of 2011.
The outlook for the Oilseed Farming industry is more subdued, with industry revenue forecast to grow at an average annual rate of 2.2% to $1.3 billion between 2011 and 2016.
Barring any severe weather conditions domestically and globally, IBISWorld anticipates that the growing acceptance and adoption of vegetable oils will spur demand from the American consumer.
Additionally, the expanding biofuel market could also help producers expand their horizons over the next five years.
Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.