Canadian Canola Oil Market Guide

Canola is a name applied to edible oilseed rape. This plant belongs to the mustard family along with 3,000 other species. Close relatives of this crop have been cultivated for food since the earliest recordings of man. Rapeseed has been important to Europe since the 13th century as a source of food and oil for fuel. Oilseed rapes were recorded in use in India about 2000 to 1500 B.C. Rapeseed plants grows well in relatively low temperatures, with less heat required for successful reproduction than other oilseed crops. Therefore, rapeseed was one of the very few oil sources that could be successfully grown in temperate climates. Rape was introduced to Japan from China or the Korean Peninsula over 2000 years ago. Its production became popular in North America during World War II as a source of lubricant. Its oil has the property of adhering well to moist metal, making it an ideal lubricant for marine engines.

In the 1960s – 1970s, Canadian scientists created canola by conventional breeding rapeseed plants. The idea was to eliminate the undesirable properties of rapeseed oil and create a new plant with a better nutritional profile. The term canola is a contraction of ‘Canadian’ and ‘ola.’ The name "canola" was registered in 1979 by the Western Canadian Oilseed Crushers Association to describe "double-low" varieties.

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Canola (Rapeseed)

The most common varieties available in the food manufacturing industry are:

• Canola Oil (also known as Regular Canola Oil or Canola Salad Oil)
  

Canola Oil is often commonly known as regular Canola Oil or Canola Salad Oil. This oil is made from the seeds of a canola oil plant. Most canola crops today (about 90%) do use genetic modification. The oil is expelled using solvents (commonly Hexane) to remove the most oil possible. This is the majority of Canola Oil available in today’s market and it offers the lowest price point.

• Expeller Pressed Canola Oil
  

Expeller Pressed Canola is an oil that is made from traditional canola seeds but is produced using expeller pressing methods. Instead of expelling the oil using solvents, the oil is pressed out using a mechanical press. No chemicals are used in the productions of this oil.

• Non-GMO Expeller Pressed Canola Oil
  

Non-GMO Expeller Pressed Canola Oil is produced in much the same way that regular Expeller Pressed Canola Oil is. It is pressed using mechanical means and no chemicals are used. The major difference is that this oil is created from seeds that have been grown without the use of genetic modification.

• Organic Canola Oil
  

Organic Canola Oil is the highest quality type of canola oil available. It is produced using expeller pressing methods and no chemicals are used. Besides, it is produced using canola seeds that have been grown organically. Because of the USDA organic national program regulations, these organic seeds are also Non-GMO. 

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Comparing the Grades Of Canola Oil

Rapeseed oil production is obtained in two methods - by pressing or extraction. For each method, the seed must be fragmented and prepared for processing. Finally, it is refined using water precipitation and organic acid to remove gums and free fatty acids, filtering to remove color, and deodorizing using steam distillation. Canola/rapeseed at this point oil is ready to be packaged and sold as cooking oil, or further processed into a wide range of consumer and commercial products.

1. Pressing - mechanical fat extraction in a press. Chemicals are not used in the process. The seeds are crushed in a screw press, rubbed into a pulp and the extracted oil passes through filters, on which residues are retained. The oil obtained via this process is of high quality. Pressing can be done in two ways:

Cold method - oils obtained mechanically at a controlled temperature - cold-pressed oils - discharge temperature maintained at a level no higher than 50° C. The most expensive method of obtaining oils. The oil obtained is rich in unsaturated fatty acids, has an intense color and smell. Because it does not contain a preservative it should be quickly used up.

Hot method - involves the production of oil at a temperature of 160 - 200° The yield of seeds of oil plants doubles, but the unsaturated fatty acids are changed into unfavorable trans-isomers.

2. Chemical (extraction) - isolation of oil with chemical solvents (most often with hexane), while heating up to high temperatures (over 100° C). This is the most efficient and cheapest method of obtaining oil, however, it deprives the raw material of valuable nutrients and leaves traces of chemical solvent, therefore it is not recommended in food. Currently, extraction is more often preceded by pressing. After receiving the oil, the next stage is the refining or purification stage (it is not obligatory).

The top 5 exporters of canola/rapeseed oil are Canada, Germany, Belgium, The Netherlands, and Czechia generated 81.42% of the world’s overall total. In 2022, the total export of canola/rapeseed oil amounted to USD 6.3 billion. Year over year, the overall value of exported almonds increased by 14.5% compared to $5.5 billion during 2021.

In 2022 the top exporters of canola/rapeseed oil are the Canada ($3.3B), Germany ($1.0B), Belgium ($361.3M), The Netherlands ($255.1M), and Czechia ($217.8M).

Export Process

1. The first stage in exporting canola oil is to look for suppliers and check all certificates and establish the oil the supplier is looking to sell is  it’s a real canola oil

2. The next step is to secure volumes based on buyer requirements

3. Establish the schedule and pipeline of shipping and confirm with the buyer

4. Negotiate the price and payment terms with the supplier

5. Make an offer to the buyer with the price and volumes

6. the offer is then followed with a negotiation between buyer and supplier to confirm price and volume or otherwise 

7. The supplier or their agent sends the pro-forma invoice to the buyer

8. Part payment is made by the buyer to the supplier against the purchase order

9. The next stage is to finalise  the estimated arrival time of the shipment and finalise booking with the shipping line

10. The shipment is then loaded followed by sending all documents including, the bill of landing, commercial invoice, packing list and health certificates to the buyer

11. After the receipt of the above documents, the buyer makes payment of either 30% or 50% based on the agreement.

12. The next stage is the arrival of the consignment

13. Clearance process and quality check is done by the  buyer

14. If no claims are made against the consignment, the buyer then takes possession of the products and make final payment

1. Rapeseed and canola oil should have an acid value of at most 0.6% to 2.0%. Oils and fats spoil by readily becoming rancid aided by light, atmospheric oxygen, and moisture leading to changes in odor and taste. Subject to compliance with the appropriate temperature ranges, duration of storage is not a limiting factor as regards transport and storage life.

2. Normally, the oil does not need to be heated, since its solidification point is relatively low.

3. Rapeseed and Canola oil have no particular requirements as to storage climate conditions:

- Travel temperature (favorable temperature range): 15°C (12 to 24°C)

- Pumping temperature: approximately 15°C

- Solidification temperature: 0°C to -15°C

4. Under normal transport conditions, rapeseed and canola oil are liquid and therefore need not to be heated. In the solidification state, if the temperature rises during transportation, the oil has to be heated to achieve pump ability. Solidification temperatures are of considerable significance in the transportation of fatty oils and fats. The oil must remain liquid during loading, during transportation, and unloading.

Chill haze (separation) begins if cooling causes the temperature of the oil to approach solidification point, the oil becoming ointment-like and finally solid, such that it is no longer able to be pumped. Separation and the associated change in consistency from liquid to solid occur more readily upon cooling, the higher the solidification point. The oils must only be heated by a few degrees centigrade per day, otherwise, the risk of rancidity and other negative changes arises.

White mold (Sclerotinia stem rot) can be a serious disease after flowering in seasons with cool, moist growing conditions. Infection occurs when dropped petals contact the stem and spores germinate on the dead petals. Bleached stem lesions occur around the initial infection, then white mold and black fungal bodies grow inside and outside the stem. Sudden wilting and premature death of individual plants are usually the first noticeable symptoms. Since white mold is a problem in several other crops, its occurrence in canola must be carefully monitored. Planting canola following such crops as soybeans and dry edible beans or sunflower should be avoided.

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Canola (Rapeseed)