Table of Contents

1. Overview

Canola, Brassica Napus, (also known as rape seed) is an oilseed crop. It is an excellent rotation crop, and should be used to increase profits of crops such as maize and wheat. Advantages include the lowering of root knot nematodes and Phytophtera.

The growing of canola needs good management. Special care should be taken with harvesting of the small pips. Road and rail trucks need to be sealed tightly in order to prevent losses in transit.

Canola is primarily used for manufacturing of the following:

  • Canola oil (crude oil and bottled oil-used as a salad and frying oil, in margarines, shortenings and in foods that contain vegetable oil such as baked goods, potato chips, French fries, etc.).
  • Canola oil biodiesel
  • Canola based mayonnaise
  • Canola oil cake
  • Canola meal (the by-product of canola oil processing, used as a high protein feed ingredient in the rations of animals)
  • Canola can be used for forage for pigs and poultry.
Source: Canola Market Value Chain Profile at www.daff.gov.za and Canola brochure from the same website.

 

2. International business environment

The key global producers are Canada, China, EU and India, with a production share of 24%, 19%, 33% and 10% respectively. These countries make up 86% of global canola production.

[Source: Wandile Sihlobo, Agbiz, Commentary: Canola Market (16 Aug 2016 and 1 Dec 2016)] 


Some international websites:

  • www.canola-council.org - Canola Council of Canada
  • www.canolainfo.org - a Canadian website for “everyone who wants to know more about the world's healthiest oil”.
  • Oilseed information is also available on the Oil World website www.oilworld.biz at a fee.
  • Find the monthly “Oilseeds: World Markets and Trade” on the United States Department of Agriculture’s Foreign Agricultural Service Home Page. The address is www.fas.usda.gov.

 

3. Local business environment

Find the Grading Regulations for canola and the requirements for grain exports at http://agbizgrain.co.za

Canola is an oilseed crop grown mainly in the winter rainfall regions of the Western Cape, although it is also farmed in the North West, Limpopo and Northern Cape provinces. It competes with barley and wheat when farmers choose what to grow, and with other plant oils, mainly sunflower oil and soy oil, for the local market.

South Africa’s canola production has increased significantly over the past 19 years. The area planted peaked at 95 thousand hectares in 2014 before dropping in subsequent years. The Bureau for Food and Agricultural Policy (BFAP) suggests that the introduction of better adapted high yielding canola varieties, together with the associated benefits of including canola as part of a winter crop rotation, could see an average increase of canola plantings exceeding 120 thousand hectares by 2026 (BFAP, 2017).

All of these developments have largely been driven by growing domestic demand.

  • In South Africa, canola is primarily used for the manufacturing of canola oil and oil cake. Farmers save the balance for planting purposes for the next season.
  • Canola is a good source of protein in animal feed and large quantities of protein for animal feeds have to be imported every year. There is potential here since large quantities of protein for animal feeds have to be imported every year.
  • The market for bottled canola oil has room for growth because it is not well known among consumers. It is also fairly unknown in the industrial deep-frying market.
  • Regarding its potential for biofuels, please refer to the block below.

The canola marketing season in South Africa commences on 1 October and ends on 30 September the following year. Statistics (e.g. crop estimates, export/import etc) may be found at www.daff.gov.za and www.sagis.org.za. See also the Monthly Bulletin on the SAGIS website.

The case for canola-based biodiesel

According to Petrus Fouché of the PhytoEnergy Group, canola is a crop with enormous economic potential for producing biodiesel. 

  • Diesel based on other feedstock freezes as low as - 5 to -8ºC. Canola based biodiesel is safe as far down as -22ºC and meets the strict EU quality specifications.
  • In contrast to food or biofuel, with canola it is food and biofuel, as 60 % of the crop is used for feed, while the crop rotation increases both maize and wheat yields for up to 4 years, thus increasing food production on less hectares. The added dual purpose pasture opportunity further increases food production.
  • The oil content is higher than other feedstock used in South Africa i.e. 36 - 42 % vs. soybeans 20% & sunflower 30%
Source: Wandile Sihlobo, Agbiz, Commentary: Canola Market (16 Aug 2016 and 1 Dec 2016); Canola Market Value Chain Profile at www.daff.gov.za and Canola brochure from the same website; correspondence from Petrus Fouche, PhytoEnergy Group.