Statistics Canada has confirmed a new record high for the Canadian canola crush in 2023.
The government agency reported Wednesday that domestic processors crushed 10.523 million tonnes of canola this past year, up 20% from the 8.769 million tonnes crushed in 2022 and surpassing the previous record set in 2020 at 10.29 million. Canola oil production amounted to 4.422 million tonnes, an increase of 21.1% from 3.651 million in 2022.
StatsCan attributed the record 2023 crush to high prices and increased exports of canola oil.
In 2021, the price of canola oil increased by 65.2% over the previous year, “and it has remained elevated ever since,” StatsCan said. Meanwhile, Canadian canola oil exports increased 20.3% this past year, totalling 3.15 million tonnes.
The lion’s share of Canadian canola oil exports goes to the US, amid rapidly expanding demand from that country’s renewable diesel sector. Demand is ramping up at home as well, with Canadian renewable diesel production capacity alone expected to jump from less than 500 million litres currently to more than 4 billion litres by the end of 2027. Canadian canola crush capacity is set to grow as well, rising from the current 11.2 million tonnes annually to just over 17 million over the next five years.
According to StatsCan, the 2023 canola crush was also buttressed by heavier available supplies of canola seed heading into 2023 compared to the previous year.
The bulk of the canola grown in Canada is used by domestic crushers, who accounted for 49.4% of total disposition of canola in the 2022-23 crop year. In the same crop year, exports of canola accounted for 39.4% of total disposition.
In contrast to the larger canola crush, StatsCan reported the Canadian soybean crush declined 5.7% in 2023 to 1.763 million tonnes.
Source : Syngenta.ca