Castor Beans                                                                                                Castor Oil

 

During previous years, China alone imports more than 300,000 Mt (metric ton) of castor oil per year, mainly from India. To produce  300,000 Mt  of castor oil, over about 700,000 Mt of castor beans need to be harvested, which in turn means around 350,000 acres of castor need to be planted (assuming the average yield of dried castor beans is 2,000 kg/acre).

Take China’s Hengshui Jinghua Chemical Co., Ltd. (Jinghua Chemical for short) for example. It is a close and strategic partner with one of our main Chinese shareholders. Nowadays, Jinghua Chemical consumes 300 Mt of castor oil per day to produce its main product, sebacic acid, which is one of the bestselling raw materials for further chemical derivatives processing.

The reliable demand downstream along the castor-based value chain effectively guarantees a relatively stable purchasing price of castor oil in the international market, which once was over USD1,500/ton in 2019, with the highest price reaching USD1,600/ton.

Therefore, there is no worry at all on the demand for the castor seeds and castor oil to be produced in the years to come.

Roadmap of Developing Castor Cultivation and Related Industry