Australia: Crushing investments point to confidence in canola

The growing demand for renewable fuels and changing diets in South-east Asia is driving increased investment in Australian canola-crushing facilities. Currently, Australia has a tiny canola crush capacity, estimated by USDA to sit at 1.2 million tonnes (Mt), compared to the global output predicted to be 81.1Mt in 2023-24. However, Australia’s canola industry has flourished in the past 25 years, going from producing 2.5Mt in 1999 to a record 8.3Mt in 2022-23. By comparison, Australia’s biggest competitor, Canada, produced 18.17Mt of canola in 2022 and crushed 9.96Mt in 2022-23. Significant new investments are afoot to increase the crush capacity, as the majority of Australia’s canola production is currently exported as seed. A key reason for this gap is the lack of crush capacity in Western Australia and South Australia. WA produces almost half the national crop but only accounts for around 10 percent of Australia’s total crush, according to USDA’s Oilseeds and Products Annual ...