Canola & Oilseed Production

• Canola seed
• Canola oil (crude and refined)
• Canola meal
• Flaxseed
• Soybeans

1. 1

   Expand domestic crush capacity to export oil and meal instead of raw seed

2. 2

   Position canola oil as a premium low-carbon biofuel feedstock

3. 3

   Diversify export markets to reduce China and US concentration risk

4. 4

   Invest in drought-tolerant canola varieties through public-private breeding programs

5. 5

   Develop identity-preserved canola programs for food-grade premium markets

Canola products trade duty-free under CUSMA, but the sector is highly exposed to broader US agricultural policy shifts and biofuel mandates. US renewable fuel standard changes directly affect canola oil demand as a biodiesel and renewable diesel feedstock. Canadian canola competes with US soybean oil for inclusion in US biofuel blending programs, creating policy-driven demand volatility.

Prairie canola production faces climate risk from drought and heat stress during critical flowering periods. Processing capacity constraints mean approximately 40% of canola is exported as raw seed rather than value-added oil and meal. China's 2019 canola import restrictions demonstrated the geopolitical risk of agricultural export dependence on any single market.

Canada produces approximately 25% of global canola, making it the world's largest exporter. Competition from European rapeseed, Australian canola, and US soybeans intensifies in biofuel feedstock markets. Canadian canola's low-carbon intensity profile provides a competitive advantage in markets with clean fuel standards.