Growing canola processing in Canada will affect commodity exports

Some traditional buyers of Canadian canola, starting in 2024, may reduce their purchases of the crop from Canada, market participants say. It is during this period that new oil plants are expected to be put into operation. Expansion and new construction by Richardson International, Viterra and Cargill will increase oil refinery capacity by 4.6 million tonnes next year. Federated Co-operatives Limited/AGT Food and Ingredients, Bunge and Louis Dreyfus will process another 3.2 million tonnes at an unspecified date. There will be a huge new source of domestic demand for crops, and this will have implications for overseas buyers. “There will be some decline in exports,” said Justin Shepherd, senior economist at Farm Credit Canada. He added that there would be a chance to increase the export of meal and oil, although most of the oil will be redirected to the biofuel markets in North America. China, Japan, and Mexico typically account for 80 percent of Canada's canola seed exports, while ...