11 - Industry Trade and Economics

Abstract

The Canadian canola industry consists of three distinct components: the seed production subsector, the processing subsector, and the marketing subsector. Canola is the main oilseed crop produced in Canada. With continued plant breeding and varietal research, the production of canola continues to expand in Canada. With the combination of increased seeded area and higher yields, canola production has increased by approximately 50% from the period spanning 2000–2009. The oilseed processing industry in Canada has benefited from the growing demand for edible oils. The oilseed crushing industry makes a large and positive contribution to the Canadian economy. The processing industry provides enhanced diversification to the economy through value-added contributions and the financial multiplier effect. The direct economic benefits of the oilseed crushing industry to the economy arise from farm revenues from seed purchases, value added from crushing, value added from refining and packaging, and downstream benefits from further processing. In addition to the direct economic benefits, the canola crush sector contributes to Canada's balance of payments. Canola tends to be a higher value crop than grains on a weight basis. This provides farmers with an alternative in crop production and market diversification.