World soymeal consumption is set to fall sharply this season as the global economic crisis cuts meat demand and reduces animal feed sales, Hamburg-based oilseeds analysts Oil World forecast March 31.

Global 2008-09 soymeal consumption is forecast to fall to 154.50 million tonnes from 160.28 million tonnes in 2007-08, it said.

World 2008-09 soymeal production is likely to fall to 154.62 million tonnes from 158.96 million tonnes in 2007/08.

Significant consumption cuts have occurred in the European Union, United States, Canada and a series of other countries including Mexico and Iran.

Farmers are also cutting purchases of other oilmeals. Oil World estimates global consumption of the 12 main oilmeals fell by four million tonnes or 2.9 per cent on the year in Oct. 2008 to March 2009.

But consumption of the 12 main oils and fats rose by 2.6 million tonnes or 3.3 per cent in this period.

This trend meant global crushers moved away from soybeans, which have a high meal content, towards sunseed and rapeseed, which have higher oil content and so currently provide higher earnings, it said.