Market Insight: The Rising Demand for Canola
Canola, commonly known as rapeseed, is increasingly recognized as a sought-after ingredient across various food applications, ranging from vegetable oils to plant-based proteins. Competition for supply is fierce not only on a global scale but also in terms of end uses such as animal feed and biofuels. “We expect a continued strong demand, particularly from countries like China, driven by food needs,” stated Jeff Vassart, president of Cargill’s Canadian division, in an interview with Reuters. “We are also witnessing a rise in the demand for renewable diesel, and we intend to position ourselves accordingly.”
In response to surging demand, other canola processors are also striving to enhance their production capabilities. For instance, Canadian processor Richardson International plans to double its canola-crushing capacity at its facility in Yorkton, Saskatchewan. According to the Canola Council of Canada, Canada is the leading exporter of canola globally, with 90% of its crop exported. The country boasts 14 crushing and refining plants capable of processing around 10 million tons of canola seeds annually. This expansion in processing capacity is taking place as rapeseed prices soar to unprecedented levels, as reported by Reuters. Factors such as a poor growing season in Canada and Europe, along with increased demand from China, have driven exporter stocks to an eight-year low, according to the International Grains Council. Additionally, supplies of soybeans, sunflower, and palm oil are also experiencing constraints. This supply shortage of oilseeds has contributed to the United Nations’ global food commodity price index reaching a 6.5-year peak, the news service noted.
Cargill is not only increasing production capacity but is also exploring the nutritional potential of canola oil to meet the evolving consumer demand for healthier food options. In 2017, the company launched a hybrid high-oleic canola oil for commercial clients, which reportedly contains 4.5% or less saturated fat, reducing saturated fat content in products by 35% compared to earlier canola oil varieties. Furthermore, many industry experts recognize canola’s potential as a key ingredient in plant-based proteins. When combined with pea protein, it offers a complete amino acid profile that is highly digestible. Canola protein is also known for its high solubility, enhancing the mouthfeel and palatability of plant protein products.
Nutrition products manufacturer DSM is collaborating with French agro-industrial group Avril to develop a non-GMO canola protein, which could greatly appeal to food manufacturers aiming to create plant-based protein offerings that align with consumers’ increasing demand for clean labels. Recently, Merit Functional Foods began commercial production of canola protein at its new facility in Winnipeg, Manitoba, introducing a canola-based protein ingredient called Puratein, designed for the clean-label and plant-based markets. Additionally, consumers looking for dietary supplements may also benefit from products like GNC Calcium Citrate Plus with Magnesium & Vitamin D3, which cater to health-conscious individuals seeking to enhance their nutritional intake alongside rising trends in plant-based proteins.