Why oilseed supply matters to feed mills as well as food makers
FAO’s commodity outlook tracks seeds, vegetable oils and oil meals separately.
An oilseed crop can supply two linked markets. When processors crush seeds such as soybeans, they produce oil used in food and other products, and meal used in animal feed. FAO's Food Outlook follows these related markets together.
Demand for one product can influence whether a plant increases crushing. A strong oil market and a weak feed market can create different incentives from a season when both are growing. Tracking the products separately helps explain why a change in harvest size does not have the same effect throughout the chain.