Canadian canola industry has strong growth propects in a changing oilseeds world

This article paints a healthy future for the Canadian canola industry driven by biodiesel oil demand and health issues in the food market.

It points out the strong competition for canola created by heavy research investment in the giant soybean industry.


Canola supply expected to double on health demand

By Lorraine Heller
4/3/2007- The Canadian canola industry has said it expects to more than double production of the crop by 2015, and is counting on increased demand for heart-healthy oils to help it reach its objectives.

The nation's Canola Council said it aims to reach production levels of 15 million tons over the next eight years, a 65 percent increase over current levels of 9.1 million tons.
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US and Canadian market demand for oils and fats is anticipated to grow by 3-4 percent per year. And according to the Canola Council, three key factors will "disproportionately bias" demand in favor of canola in the coming years.

Top of the list comes the oil's health benefits, said the group.
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Soy, which is currently the primary competitor to the canola industry, has more ongoing investment in end use oil profiles and protein enhancements than canola. Indeed, much of the current investment in soy oil modification is driven towards making soy oil more competitive with canola oil for food markets.

For example, high stability canola is expected to experience competition from low linolenic soybeans in the trans-fat replacement market.