Canola Quick Bytes

A supplement to U.S. Canola Digest


Capitol Hill

U.S. Canola Association President Andrew Moore testified at an April 26 hearing of the House Agriculture Subcommittee on General Farm Commodities, Risk Management, and Credit to provide canola producer perspectives on the 2023 Farm Bill. He reiterated the importance of crop insurance and agricultural research as well as called for streamlining and improving Title I Agriculture Risk Coverage and Price Loss Coverage programs and maintaining canola’s ability to compete for acres. Moore was joined at the hearing by leaders of the other agricultural commodity organizations including corn, soy, wheat, cotton, rice, sorghum, peanuts, sugar and pulse crops.

The approval and implementation in 2022 of the canola renewable diesel pathway for the Renewable Fuel Standard is now resulting in an increased use of canola oil for biofuel production. The Energy Information Administration report for January 2023 showed a 278% increase in canola oil use for biofuels compared to a year ago or 242 million vs. 64 million pounds, respectively.

In April, the U.S. Food and Drug Administration (FDA) released new “Feed Your Mind” educational materials to provide science-based information for consumers on genetically modified organisms (GMOs). Launched in 2020 in partnership with the U.S. Department of Agriculture (USDA) and the Environmental Protection Agency, this educational campaignaims to increase consumer understanding of GMOs and was developed. The new materials include:

The USDA announced the appointment of Manjit K. Misra as director of the National Institute of Food and Agriculture (NIFA). Secretary of Agriculture Tom Vilsack says Misra, who is a former professor of agricultural and biosystems engineering at Iowa State University, is an “esteemed scientist and educator whose devotion to studying and sharing his knowledge of seeds with the world will benefit society and inspire generations to come.” Misra will lead NIFA’s work in advancing agricultural research and education. He will begin the position in early May.

Agronomy

The USDA’s annual crop values report indicates that the total value of U.S. canola crops has surpassed $1.15 billion. North Dakota canola value is expected to reach a new record of $978 million, up by 27% from last year. Additionally, the USDA’s Annual Prospective Plantings Report predicts that North Dakota producers will break their own record in 2023 by planting 1.9 million acres of canola. The biofuel surge is a big reason.

A study from the Prairie Agricultural Machinery Institute shows how significant canola losses can be and what producers can do to reduce them. It focused on the variables that can affect crop losses and found that higher ambient temperatures, sunny harvest conditions and slower ground speeds were the most impactful.

Nutrition

What are healthy fats and why are they beneficial to your health? Unsaturated fats, which are predominantly found in canola oil, may help reduce the risk of heart disease, diabetes and some types of cancer. The Academy of Nutrition and Dietetics recommends that adults “eat between 25 and 35 percent of calories from good fats.” 

Other Country News

Canola exports from Canada, the world’s top canola exporter, could drop by nearly half in coming years. That’s because many domestic processors are focusing on canola-based renewable fuel to power trucks and farm equipment. This is expected to cut exports by as much as 4 million tons in the next two to three years until more crush capacity comes online. Canadian canola crushers plan to boost their capacity by 50% in order to meet the renewable fuel needs of North America. 

Stats Canada’s first estimate of Canadian canola acres for 2023 reports only a 0.9% increase to 21.6 million acres. This estimate was lower than most market forecasts and 3% below 2021.

Canola Week 2023 will be in Calgary, Alberta as well as online Dec. 5-7, 2023. The event will provide updates on the state of the canola industry in Canada, agronomic issues, cutting-edge innovation and the latest research.

Latest Industry News

While canola prices vary across the country, North Dakota’s average price is projected to be $30.10 per cwt, down $3.30 from the previous marketing year. However, demand for canola oil from both food and fuel industries remain strong. The USDA’s April Oil Crops Outlook projects a 50% increase in canola oil used for biofuel production in the United States as well as an increase in canola oil imports from Canada. Food use of the oil is also growing, with the USDA expecting total U.S. use to be 6.78 billion pounds in 2023.

In this month’s USCA Blog, Ed Prosser of Scoular discusses his company’s recent announcement to recommission a crush plant near Goodland, Kansas to make biofuels from canola and soybeans. The faciility will process about 11 million bushels of oilseeds annually as of fall 2024. Prosser hopes to start with 50,000 acres of canola and eventually increase to 500,000 to feed the crush plant. Kansas State University and the Great Plains Canola Association will host meetings May 11 and 18 for farmers about related opportunities and the company’s vision for the rapidly changing renewable fuels market. 

Louis Dreyfus Company (LDC) plans to double its canola crushing capacity at its Yorkton, Saskatchewan facility. It aims to process more than 2 million metric tons of canola by 2025 to keep up with renewable diesel production demands. Similarly, competitors Cargill, Viterra and Richardson International have already announced plans to increase canola crush capacity.

Botaneco, an innovative ingredients manufacturer, has been using a novel approach to generate canola-derived protein concentrate for high-value species like salmon and shrimp. CEO David Dzisiak says that other industry leaders focus on extracting oil from canola and use processes that ignore the value of protein. Botaneco uses a water-based manufacturing platform that pulls ingredients out of canola and preserves their native quality and function. The company is seeking to supply the aquaculture sector of the Americas and Southeast Asia.

About the USCA

The U.S. Canola Association will host its fall 2023 board meeting and National Canola Research Conference in St. Louis, Mo., Oct. 29-31. The research conference will be held in conjunction with the ASA-CSSA-SSSA International Annual Meeting. 

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