Processing Industry

A leader in value-added agriculture in Canada

Global demand for canola oil and meal continues to grow, spurring investments in new processing capacity here in Canada. In 2021, four major announcements will add 5.6 MMT of processing capacity by 2025 – representing a 50% increase from our current capacity of 11 MMT. These capital investments are estimated to exceed $2 billion, creating thousands of high paying jobs. Once a processing plant is built, it provides a steady source of employment for the community along with a steady source of demand for canola grown by surrounding farmers.

Benefits of more value-added processing

More competition for canola seed raises the overall value of canola

Increased delivery options and flexibility for farmers

Market diversification – including
value-added marketing opportunities for oil and meal

Supports value-added production and job creation in Canada

Encouraging investment and innovation in canola varieties and agronomic practices

Supports Canadian biofuel investments and greenhouse gas emission reductions

Keeping pace with the industry’s strategic plan

The new processing investments across the country are aligned with the canola industry’s Keep it Coming 2025 strategic plan, that targets a growth in canola production and domestic processing volumes. Assuming processing capacity utilization of 90%, approximately 15 MMT of canola will be processed in Canada by 2025. This exceeds the industry’s target of 14 MMT and keeps pace with the value chain goal to produce 26 MMT of canola by 2025. By 2025, it’s estimated that 58% of canola grown in Canada will be processed in Canada, consistent with the current levels and the long-term average of approximately half of the canola crop being processed domestically.

Canola production and crush

The canola industry’s strategic plan for growth builds on canola’s alignment with key global trends, including continued growth for healthy vegetable oil, high quality meal and more sustainable products like canola biofuel. In the last 20 years, processing capacity has nearly tripled in Canada responding to these growing demands. According to an analysis by LMC International canola processing alone currently delivers an economic impact of nearly $6 billion annually, and contributes approximately 7,670 jobs.

Learn more about current and historic data for Canadian canola processing, as well as the method for processing canola seed.