Canola continues rise in Australia

Australian oilseeds production, dominated by canola, is expected to be strong for the fifth consecutive season with production projected to reach 6.15 million tonnes in 2025-26, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

If realized, canola production would be 3.5% higher than 2024-25 and the country’s third-largest crop ever, the FAS said. Year-on-year growth largely is attributed to slight increases in harvest area and yield, which are recovering from a dry and challenging season in much of the country’s canola growing area in 2024-25.

“Soil moisture conditions at the beginning of the planting season are slightly better than at the same time last year, supported by early autumn rains,” the FAS said. “A further factor influencing little change to the planted area is that Australian winter crop producers have, over time, established increasing rigor in their crop rotation programs. These rotations are crucial in weed and disease management and overall productivity.”

Canola exports are forecast to decline by 4% to 4.65 million tonnes after 18% growth in the expected crush volume of 1.3 million tonnes. Canola oil exports are forecast to grow by 26% to 290,000 tonnes, the highest on record.

If realized, this would be Australia’s fifth-largest canola export volume on record, the FAS said. The four higher export totals occurred in the previous four marketing years, reflecting the strong production levels.

Australia currently has six canola crushing facilities in New South Wales and Victoria, two of the most populous states with the highest domestic demand for canola oil. Western Australia hosts two smaller crushing plants. Industry sources report that total combined crushing capacity has risen in recent years from about 1.3 million to 1.6 million tonnes, the FAS noted.

“In recent years, crushers have been encouraged to expand their capacity, driven by successive years of high canola production in Australia and strong global canola oil prices,” the FAS said.

Canola meal production for 2025-26 is forecast to increase by 18% to 754,000 tonnes, up from an estimated 638,000 tonnes in 2024-25. This would mark the highest level of canola meal production on record in Australia, according to the FAS. Canola meal is a high-quality, protein-rich supplement, particularly valued for its high rumen undegradable protein content as ingredient in livestock feed.

With an anticipated increase in canola crush in 2025-26, canola oil production is forecast to rise to 546,000 tonnes, a 20% increase from the estimated 456,000 tonnes the previous year.

“Trade disruptions caused by import tariffs on Canadian canola oil imposed by the US and China are expected to shift global demand, creating opportunities for Australian canola processors,” the FAS said. “With the expansion of crushing capacity in Australia, the country is well-positioned to capitalize on these market shifts and increase its canola oil exports in the forecast year.”

Tags: rapeseed, rapeseed oil, crop forecast, Australia