Canola Quick Facts
Canola Facts: A Major Canadian Export
Here are some key facts on the value of Canada’s exports of canola seed, oil and meal.
In the five most recent crop years starting 2000/01, Canada produced an average of 6.2 million
tonnes of canola seed per year. In the same time period Canada annually exported 3.4 million
tonnes of canola seed, 706,000 tonnes of canola oil and 1.15 million tonnes of canola meal to
markets around the globe. The total value of canola seed, oil and meal exports is about $2
billion. Depending on the year, canola is either Canada’s first or second most valuable
field crop (the other is wheat). In 2004, canola was Canada’s largest crop by value.
The U.S. is Canada’s largest canola buyer. The U.S. took an average of 510,000 tonnes of
canola oil per year since 2000/01 valued at $345 million/year. Since 2000/01, the U.S. has
purchased an average of 255,000 tonnes of seed per year valued at roughly $85 million. In the
same timeframe, the U.S. has purchased approximately 1.1 million tonnes of canola meal per year
from Canada (about 60% of our total meal production) valued at $235 million.
Our principle seed buyers are Japan and Mexico. China and Pakistan are emerging as major seed buyers.
Over 50% of the edible oil consumed in Japan is canola oil. In Mexico it is 25%. Canola oil is
the second most consumed oil in the U.S. (after soybean) representing 7.5% of that edible oil market.
Japan, Canada’s best canola seed customer, bought an average of 1.7 million tonnes
of canola seed a year since 2000/01 valued at $580 million.
Mexico, a growing and important market for Canadian canola, bought an average of 785,000
tonnes of canola seed a year since 2000/01 valued at $265 million. Purchases are expected
to increase to between 1,000,000 and 1,500,000 tonnes per year. Mexico is also an increasingly
important buyer of Canadian canola oil, with current purchases at about 50,000 tonnes per year.
In the past five years, China has emerged as a major market for Canadian canola. Since 2000/01,
its average imports are about 550,000 tonnes of Canadian canola seed per year. China’s
annual purchases are highly variable and depend largely on their domestic oilseed supply and
the price differential between canola and competitor products.
Korea has been importing Canadian canola oil for over a decade. Since 2000/01, it imported
on average 27,000 tonnes/year valued at $18 million. While not a large importer, Korea
represents a class of wealthier developing countries that could import significantly higher
amounts of canola in the future.
Pakistan started purchasing Canadian canola in 2002 – almost 200,000 tonnes. Countries
in this region, including Iran and India represent our greatest new market potential –
possibly as much as 1 to 2 million tonnes of seed equivalent a year.
There are eight major canola exporting companies in Canada, and five of these are major
grain handlers. Located across Canada, these companies employ a large number of Canadians
in both rural and urban areas.
The current market development priorities for the Canadian canola industry are to expand
canola oil consumption in the U.S., Mexico and Canada through increased promotion, and
to open new markets in countries such as China, Pakistan and India.
November 1, 2005
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