In 2022, after the lifting of priority preventive measures for the spread of COVID-19, Japan entered the 7th and 8th waves of the virus. Even so, Japan took a step toward returning to a society and economy without restrictions on the flow of people. Expectations are rising for a full-fledged recovery in demand for vegetable oil, which has been greatly affected, especially in the case of oil for commercial use. The vegetable oil industry always strives to fulfill its responsibility to provide a stable supply of safe and secure products. In addition to the situation in Ukraine, the prices of oilseeds and vegetable oils have risen to historic levels. These factors overlapped with the impact of soaring energy prices and the rapid and significant depreciation of the yen. As a result, continuing from 2021, it was necessary to make price revisions in 2022. On the other hand, due to changes in lifestyles and eating habits, value of vegetable oil continue to increase as the result of factors such as strong demand for premium oil in the home-use market and rising expectations for functional oil in the commercial-use market. Moreover, action has been taken to strengthen business in the form of active efforts for responding to the harsh environment surrounding our industry. The Top 10 News Stories in the Vegetable Oil Industry for 2022 reflect these conditions. We can only hope that more of the top 10 news reports next year are happier stories.
| Ranking | Item |
| 1 | Due to the historical increase in raw material prices for canola, soybeans, palm oil, etc., the sharp rise in energy prices, and the rapid weakening of the yen, oil producers implemented several price revisions in continuation from 2021. |
| 2 | The global supply and demand for edible vegetable oil raw materials is tightening due to the major production cut in Canada, which is the main producer of canola, the Russian invasion of Ukraine, the decreased soybean production in South America, and the expansion of biofuel demand. |
| 3 | In the home-use market, there was strong demand for rice oil, sesame oil, olive oil, and low-oil-absorption products, with these products turning into best-selling products. For commercial use, there has been a focus on long-lasting oil as a means of cost control. Expectations for premium oil and functional oil are rising. |
| 4 | In addition to rising crude oil prices, Indonesia's export ban as a priority policy for domestic palm oil supply led to soaring palm oil prices on a global scale. |
| 5 | As an initiative toward the nationwide integration of oil extraction functions, a basic agreement for a joint venture company for oil extraction in the West Japan area was announced. The agreement aims for stable supply of products, strengthening of sustainable international competitiveness, and solving environmental and social issues. Furthermore, business alliances aimed at strengthening business are progressing. |
| 6 | Driven by vegetable oil prices, the FAO Food Price Index hits historic highs. Vegetable oil prices led the market by reaching 251.8 in March. Although the situation calmed down in the middle of the year, the price level remained high. |
| 7 | Due to Europe's worst drought in the last 500 years, olive oil prices are soaring due to the prospect of a significant reduction in olive production in Spain, which accounts for approximately half of global production. |
| 8 | As a response to the social issue of food loss reduction, the sequential extension of expiration dates for household cooking oil in plastic bottles was announced. Also, paper containers are being used to promote the reduction of plastic. |
| 9 | Rising prices due to a drastic reduction in canola production lead to increased importing of soybeans and a shift to oil extraction. Imports also increased due to shortages of canola oil and canola meal. |
| 10 | Due to the impact of widening interest rate differentials between Japan and the United States in conjunction with concerns regarding global inflation, the yen depreciated sharply. It temporarily reached the 151 yen level for the first time in 32 years. |
Note: The Top 10 News stories for the year are chosen by votes from 9 oil production industry trade paper companies and the chairman of the Japan Oilseed Processors Association.
