Production | Fall 2009
Oilseeds face off over saturated fats.
Despite a small drop from last year’s record acreage, canola is in no danger of losing its spot as the primary oilseed processed in Canada. According to the Canadian Oilseed Processors Association, the domestic crush surged to a record 4.28 million tonnes in 2008-09. That’s up three per cent from the previous record of 4.14 million tonnes set in 2007/2008. And more crushing capacity is under construction.
But in the big picture, canola is still a distant second to soybeans, which dominate the edible oil market in North America. “If you look at soybean consumption in the U.S., canola has a long way to go,” says Catherine Folkersen, executive director of SaskCanola.
Even though canola oil remains a relatively small player, however, consumption has risen significantly. This increase in North American market share, to about 10 per cent, has driven producers’ profit upward, and that hasn’t escaped the notice of competitors.
The soybean industry sees the gains we’ve made, says Folkersen. “If you take 10 per cent of someone’s market, you’re creating concern.” And now specialty, high-oleic canola oils are targeting another segment of the market.
Not surprisingly, the soybean sector hasn’t been resting on its laurels, watching canola eat into its market share. Research into improving the nutrient profile of soybean oil is also forging ahead. “The industry is working on a big reduction in saturated fatty acids,” says Folkersen. “That’s where the big difference is between soy oil and canola. We believe that’s why the canola industry has made the gains it has.” FF
