Canada plans to increase canola processing capacity by 2 mln tons

In the 2025/26 season, Canada plans to expand its capacity for processing the Canadian version of rapeseed – canola – by about 2 mln tons – to 15 mln tons, according to a report by Oil World (Germany).

As the agency notes, in July, the processing of Canadian oilseeds increased to a maximum of the last 4 months and amounted to 969 thousand tons. The total volume of seed processing since the beginning of MY 2024/25 amounted to a record 11.4 mln tons against 11 million tons in August-July a year earlier.

Experts note that over the past 10 years, canola processing in Canada has almost doubled – from 7.36 mln tons in MY 2014/15 to the current 11.4 mln tons. However, the question remains whether the Canadian industry will be able to sell the products of the additional capacities put into circulation, given the uncertainty of the legislative framework for imported raw materials on the US biofuel market, which has been the main driver of canola processing growth in Canada in the past two seasons.

China previously imposed a 75.8% tariff on Canadian canola. Earlier this year, Beijing imposed a 100% tariff on canola oil and meal from the North American country.

Tags: rapeseed, Canada