Canola
Global canola production has grown rapidly over the past 40
years, rising from the sixth largest oil crop to the second
largest. Canola production was 10-15 percent of world oil crop
production between marketing years 1999/2000 and 2008/09. Canola
oil, obtained from crushing canola seed, was the
third-most-produced vegetable oil globally in 2008/09. Between
1999/2000-2008/09, canola oil was 13-16 percent of world vegetable
oil production. Canola meal is the second largest feed meal after
soybean meal.
In 2008/09 (May/June), the farmgate value of U.S. canola
production was $270 million. The U.S. share of world production
remains small, but is of growing importance to regional economies
in the Northern Plains. Almost all canola is crushed into oil and
meal. Trends in the much larger Canadian canola industry have a
significant impact on production and processing of canola in the
United States.
The dramatic success of the canola brand in North America has
caused the word "canola" to become synonymous with edible rapeseed
in much the same way the word "Xerox" is understood to be a
photocopy. Today, nearly all production in North America uses
edible rapeseed varieties, and discussions of production typically
refer only to canola. Other areas of the world where canola
varieties are less widely used continue to use the term "rapeseed"
for both edible and inedible varieties. This web page uses
terminology familiar in North America.
Crop History
Since World War II, global production of rapeseed and canola has
grown dramatically. During WWII, inedible rapeseed oil was used as
a high-temperature lubricant on steam ships, but with the switch to
diesel engines in the following decade, industrial demand declined.
Initially, consumer demand for rapeseed oil was negligible because
it naturally contains high amounts of erucic acid. Erucic acid was
enough of a concern that in 1956, the U.S. Food and Drug
Administration (FDA) banned rapeseed oil for human consumption. In
addition, demand for rapeseed meal was low because of high levels
of glucosinolates, a compound that at high doses depresses animal
growth rates.
By the early 1970s, plant breeders developed low-erucic acid
rapeseed (LEAR) varieties that also had low glucosinolate content.
In 1978, the Western Canadian Oilseed Crushers Association
registered these varieties with the name "canola" for marketing
reasons. Over the next 10 years, European seed producers also
developed LEAR varieties, which they dubbed "double-zero" or
"canola-equivalent."
Because of the higher palatability of LEAR varieties, FDA
granted the oil produced from LEAR varieties Generally Recognized
as Safe (GRAS) status on January 1, 1985. With its low level of
saturated fat, LEAR oil appealed to health-conscious consumers, and
production increased steadily.
Government support programs for minor oil crops began with the
Food, Agriculture, Conservation, and Trade Act of 1990 and have
decreased producer risk and increased profit for these crops.
Canola producers became eligible for Marketing Assistance
Loans/Loan Deficiency Payments in 1991, Oilseed Program Payments (a
supplemental program authorized for 1999-2001 soybean and minor
oilseed crops; see the 2001 Oil Crop Yearbook 
for more information) in 1999,
direct dayments in 2002, Average Crop Revenue Election payments in
2009, and counter-cyclical payments in 2010.
Canola Production and
Processing
Global canola production is concentrated away from the equator
in areas with dry weather and shorter growing seasons. In Europe,
Ukraine, Russia, and parts of China, winter canola is planted
between September and November before the winter begins. These
areas freeze in the winter, but temperatures do not get cold enough
to kill overwintering plants. When spring arrives, canola emerges
more quickly than it would if it were planted in the spring,
producing a 20-30 percent larger yield. Spring canola varieties are
primarily planted in parts of China, India, Canada, and the United
States. Spring canola varieties mature as early as 85 days after
planting, depending on the variety and weather conditions.
U.S. Production
U.S. canola production is concentrated in the Northern Plains
where a drier, shorter growing season makes corn and soybean
production less attractive (see 2007 Census of Agriculture maps for
Canola Harvested Acres). In 2009, 90 percent
of production was in North Dakota, with smaller amounts in
Minnesota, Montana, and South Dakota. Roughly 30,000 acres of
canola grown for planting seed are scattered throughout Colorado,
Montana, and Idaho to supply U.S. and Canadian farmers.
Producers apply nitrogen, phosphorus, sulfur, and potassium in
the spring before or at planting. Sulfur requirements are higher
than for other crops. New crop varieties that are resistant to
herbicides have helped to decrease the risk and effort associated
with canola production.
One of the most significant limits on canola production remains
the small timeframe producers have to harvest the crop. To reduce
concerns over immature seed problems (green seed) and seed shatter
losses, canola is harvested at a specific point in crop
development. Because canola ripens very quickly, there can be
considerable time pressure on producers even if they stagger
planting in their field with canola varieties that mature at
different times. Producers generally swath canola in much the same
way as spring wheat. They cut the ripening plants and leave them to
dry in the field for 10 to 14 days. After the moisture content of
the seed drops to a safe storage level, producers combine and
collect the seed for storage or sale.
In the Northern Plains, canola is typically planted in rotation
with small grains including wheat, barley, oats, and flax, although
rotations vary considerably in this region and include many other
crops. Ideally, canola is included in a rotation every 3 to 4 years
to minimize the spread of pests and diseases. Other crops highly
susceptible to Sclerotinia (white mold), especially
sunflowers and dry beans, should not be planted in rotation with
canola. Soybeans, lentils, and field peas are slightly susceptible
to Sclerotinia, but are still commonly grown in rotation
with canola.
2007 Census of Agriculture
The 2007 Census of Agriculture reported canola production in
2007 as being steady with production in 2002. In 2007, 3,123 farms
harvested canola, compared with 3,831 in 2002 and 2,892 in 1997. As
the number of farms declined between 2002 and 2007, the amount of
harvested acreage remained about the same. The number of large
farms over 1,000 acres increased 23 percent, while the number of
farms under 100 acres declined 33 percent. Only 13,535 acres were
irrigated in 2007.
Processing
Canola seed is typically not sold to consumers, but is crushed
at processing facilities into oil and meal. The small, round seed
contains 38 to 45 percent oil. Crushing plants are able to remove
most of the oil, and nearly all of the remaining material is a
suitable meal for livestock feed. Canola oil is the most valuable
crush component and provides the majority of crushing plant
revenue. Canola seed is first pressed to extract the bulk of the
oil, and afterward, most crushing facilities add a chemical solvent
to remove the remaining oil. The supply of canola meal and oil are
linked through the crushing process even though demand for these
products is independent.
Major crushing plants in North America are located in central
North Dakota and Prairie Provinces in Canada. One plant in North
Dakota can process 1,000 tons per day or roughly two-thirds of the
U.S. crop. The location of crushing plants facilitates trade
between the United States and Canada because it is often cheaper
for firms to import seed from across the border than to purchase
from a more distant domestic location.
Trade
As canola production has expanded over the past 20 years, global
trade in canola seed and products has also increased. However,
trade continues to be a smaller share of production than other
major oilseeds. Trade in canola meal is limited because of the
abundance of higher quality soybean meal and the high cost of
transportation relative to the value of canola meal. Japan, Mexico,
China, and the European Union (EU) are major importers of canola
seed. The United States is the primary importer of canola oil and
meal because of its proximity to Canada and the ease of
cross-border trade.
Canada accounts for more than half of world trade in canola
seed, meal, and oil. Canadian producers continue to expand canola
area and production. Demand prospects look strong because of
growing use of vegetable oils in China and India and
canola-oil-based biodiesel use in the EU. The Canadian crushing
industry is growing fast to support increased demand for canola
oil. In the next 2 years, more than 1.5 million metric tons of
canola crushing capacity is expected to be built in the Canadian
Prairie Provinces. Some of the increased canola oil may be used to
produce biodiesel. As Canada's nearest neighbor and fellow North
American Free Trade Agreement (NAFTA) member, the United States
will likely continue to purchase the majority of Canadian exports
of canola oil and meal.
In the past few years, biodiesel producers in the EU have
dramatically increased demand for canola oil, and crush capacity
has expanded considerably. Although EU canola production has
expanded to support this industry, the EU has also become a
significant importer of canola seed. Much of these imports arrive
from Ukraine, Belarus, and Russia. These countries have expanded
canola area over the past 5 years, and there appears to be plenty
of room for continued expansion if demand remains strong. Ukraine,
in particular, doubled production in 2006, nearly did so again in
2007, and more than doubled output in 2008 to become the second
largest canola exporter in the world.
Consumption
Canola seed
In the United States, canola seed is typically not consumed
directly, but instead crushed for oil and meal. A limited number of
Asian countries, including India, consume canola seed as a source
of food.
Canola Oil
Food use: Canola oil is the third largest source of vegetable
oil in the world after soybean oil and palm oil, and use is
continuing to grow. In the United States, canola oil is used in
frying and baking applications, and is an ingredient in salad
dressings, margarine, and a variety of other products. Canola oil
appeals to health-conscious consumers because it has a low
percentage of saturated fat and is free of artificial trans-fats.
High-oleic canola varieties have been developed recently that are
used in commercial high-temperature frying applications to replace
partially hydrogenated oils.
Industrial use: In the early 2000s, canola oil prices were
competitive with soybean oil, and biodiesel producers considered
making biodiesel from canola oil. However, since that time, canola
oil prices increased and in 2008/09 (Oct/Sept) commanded a
23-percent price premium over soybean oil. As a result of
increasing and inelastic canola oil demand for food use, it is
unlikely that biodiesel producers in the United States will use
significant amounts of canola oil. Instead, soybean oil and tallow
are preferred for their lower prices and wider availability.
Unlike the United States, the majority of European cars and
trucks run on diesel. As a result, EU biofuels initiatives are
primarily aimed at the production of biodiesel. Higher greenhouse
gas reductions from biodiesel production versus ethanol production
also favor this approach. Canola is the primary oil crop grown in
the EU and Eastern Europe, and abundant supply makes it the natural
feedstock for biodiesel. EU biodiesel policies, especially
cold-weather fuel standards, also favor the use of canola oil. With
increasing biofuels mandates, industrial use of canola oil has
grown rapidly in the EU, from 1.247 million metric tons in 2002/03
(July/June) to 5.791 million in 2008/09. In 2008/09, industrial use
of canola oil in the EU was 69 percent of production, most of which
was used to produce biodiesel.
A small amount of high-erucic acid rapeseed (HEAR) oil is
produced in the United States. HEAR oil is used in a variety of
industrial and consumer products--from lubricants, hydraulic
fluids, and penetrating oils to fuel, soap, and paints. HEAR oil is
biodegradable and is used in applications requiring high heat
stability where the risk of oil leaking into waterways or ground
water is significant. In the United States, HEAR is grown under
contract and is not introduced to the regular grain handling
system.
Canola Meal
Canola meal is the second largest protein meal produced in the
world, although it is dwarfed in size by the production of soybean
meal. In marketing year 2008/09, global canola meal production was
30.8 million metric tons, versus 151.6 million for soybean meal.
Canola meal has a lower protein content than soybean meal (34-38
percent versus 44-49 percent) and fewer key amino acids. Therefore,
canola meal is an economical protein source for animals that do not
have high energy or lysine requirements.
Canola meal is primarily fed to cattle and pigs as part of a
feed ration. The majority of canola meal in the United States is
fed to dairy cows because the high fat content of the meal enhances
milk production. Poultry, aquaculture, and specialty animals
(including racehorses) can also be fed canola meal as a protein
source, although limited crushing locations, high fiber content,
and low palatability limit feeding rates.
For More Information
- USDA, Economic Research Service (ERS)
- Oil Crops Yearbook tables
- Table 24, Canola seed: Supply, disappearance,
and price, U.S.
- Table 25, Canola oil: Supply, disappearance,
and price, U.S.
- Table 26, Canola meal: Supply, disappearance,
and price, U.S.
- USDA, National Agricultural Statistics Service (NASS), Statistics by Subject (Click on "Canola"
or "Rapeseed")
- National Statistics
- Link to Quick Stats, which contains data on planted and
harvested acreage, yield, production, and value at the National,
State, and county levels
- Links to all recent reports on acreage, prices, production,
stocks, and value
- USDA, Foreign Agricultural Service (FAS)
- USDA, Agricultural Marketing Services (AMS)