The Canadian canola industry is bigger than ever, but it can’t afford to rest on its laurels, says the top executive of the Canola Council of Canada.
President and chief executive officer Chris Davison bases much of that perspective on a new economic impact study of the oilseed. Canola generates an average $43.7 billion annually in Canada, a two-fold increase over the past decade.
“In doing so, the canola sector supports an average of 206,000 jobs and $16.3 billion in wages for Canadians,” said Davison.
His comments were part of an industry update presented at Canola Days in Saskatoon in early December.
The industry must constantly look for new opportunities in biofuels, research and market expansion, Davison said.
“As we look back at 2024, we’ve seen some important opportunities taking root, but also face some ongoing challenges whose outcomes are not yet necessarily known.
”What we do know, however, is that the Canadian canola industry has a great foundation on which to build, along with a track record of innovation and collaboration across the value chain that will continue to unlock opportunities and keep us moving forward.”
The results of the economic impact study are optimistic, although Davidson admitted they may reflect higher values than an average year because it included years where canola prices were high. However, significant, ongoing investment in domestic canola processing, as well as growth in canola-based biofuel production, have driven demand.
“Over the last decade, we’ve seen canola processing and refining grow to generate six times the economic impact. And the economic contribution of canola-based biofuels has risen from approximately $70 million to about $1 billion,” he said.
“Alongside the environmental benefits, canola-based biofuels are an important opportunity to support growth and value-added production and diversify markets, increasing value to growers and the entire industry.”
Biofuels have taken much of the spotlight as the industry has promoted itself in the U.S., he noted.
The U.S. Environmental Protection Agency approved canola oil for advanced biofuel production in 2022. Since then, Canadian canola has “gained traction” with a “significant increase in the volume of canola moving into the United States.”
That’s despite pressure from imported biofuel feedstocks such as used cooking oil from China. During the same industry event in Saskatoon, Canadian Oilseed Processors Association executive producer Chris Vervaet said used cooking oil imports were a “very big risk” and have taken a bite out of the promised U.S. biofuel market.
He added that every million tonnes of imported cooking oil bumps 2.5 million tonnes of canola seed out of that market. Davison stressed the importance of open markets and fair treatment of canola oil as a biofuel feedstock.
As another challenge, U.S. farm groups pushed for restrictions on imported biofuel feedstocks in 2024.
“There are … challenges at the sub-national level as various states continue to develop and/or amend their respective low carbon fuel standards programs and frameworks,” he said.
Davison’s address did not mention the 25 per cent tariffs on Canadian goods, including agri-food, that U.S. President-elect Donald Trump has threatened to impose. In November, Trump said that he would apply the tariffs against Canada and Mexico as soon as he is sworn in Jan. 20, 2025, unless both countries tighten their borders to crack down on illegal drugs and migrants entering the U.S.
Davison referred to “revitalized” research partnerships, including 13 new projects funded by the Canola Agronomic Research Program.
Other projects now underway are being financed by the Canola AgriScience Cluster, a five-year research program funded by the canola industry as well as government funds through the Sustainable Canadian Agricultural Partnership.
Those 17 cluster projects “span everything from 4R nutrient management practices to genetics yield improvements, optimizing inputs and enhancing understanding of the positive impact of canola meal in dairy cow and aquaculture diets,” Davison said.
“This critical research will help fill knowledge gaps and play a key role in driving further resilience and growth in our sector.”
He also said Canada is now better equipped to support development of gene-edited crops.
“We look forward to new varieties that will help make Canada’s canola crop even more resilient in the face of weather, volatility, pests and other pressures that have and continue to challenge canola production in many regions.”
The canola industry faced roadblocks in 2024, including a rail stoppage during harvest and China’s announcement of an anti-dumping investigation into Canadian canola seed shipments.
The CCC is a registered party to the investigation, Davison said, and has “been actively involved and working in collaboration with government and industry stakeholders across the canola industry” on the issue.
“We are confident that Canada’s canola trade aligns with international rules-based trade and are working on supporting fair and competitive access to this important market. But as we await next steps in the investigation, we don’t yet know its outcome and full impact on the industry.”
There is also uncertainty regarding trade with the U.S., Canada’s number one market for canola. The free trade agreement between Canada, the U.S. and Mexico is up for review in 2026, although some officials have suggested the process could start earlier.
With Trump again entering the White House and threatening tariffs, there are questions about what that review will entail and what impact might result.
“Together with the Canadian Canola Growers Association, we recently made a joint submission to the public consultation on (the U.S.-Mexico-Canada Agreement), highlighting the importance of the U.S. and Mexico markets to the Canadian canola industry, positive elements of the current agreement and threats to the review and/or renegotiation of the agreement,” said Davison.
In more positive trade news, he said he’s encouraged by the ongoing bilateral canola trading relationship between Canada and Japan, which he called “one of our most consistent and high-value markets.”
A canola industry delegation is on a trade mission to the Indo-Pacific, focused on Indonesia and the Philippines.
“(They) represent additional opportunities to grow and diversify our exports, particularly for canola meal,” he said.
“This mission will build on outreach and engagement throughout the year in these and select other Indo-Pacific markets that is focused both on raising awareness and understanding of Canadian canola meal and its fit in the growing feed industries in these countries.”
