By Michael Boland, professor, Agricultural Economics, Kansas State University; and Gary Brester, professor, Agricultural Economics and Economics, Montana State University.
Profile updated March 2008.
History
Canola’s origins date back to an oilseed crop grown in the 13th century called rapeseed. Although this crop was cultivated centuries ago, rapeseed was not used extensively until World War II when it was discovered to be an excellent lubricant for steam engines in ships. The first edible rapeseed was developed in Canada in 1956, and “canola” was registered as a name for this crop in the late 1970s. Canola was developed by genetically altering rapeseed to reduce the levels of glucosinolates (which contribute to the sharp taste in mustard) and erucic acid (a fatty acid not essential for human growth). In 1985 the U.S. Food and Drug Administration (FDA) declared canola “Generally Recognized as Safe” (GRAS).
Production
Most canola production in the United States takes place in the northern tier of states adjacent to Canada: North Dakota, Minnesota and Montana. However, North Dakota produces over 90 percent of the nation's canola crop. In 2007, the state produced 1.3 billion pounds valued at $245.5 million. The total U.S. crop that year reached 1.5 billion pounds and was valued at $266 million.
Canola is a cool-season crop and requires more moisture than wheat. Diseases such as blackleg, sclerotinia stem rot and rhizoctonia root rot can reduce yields extensively. The impact of these diseases can be significantly reduced by good crop management including sufficient rotation with other crops. The development of herbicide-tolerant varieties and the use of integrated pest management have also decreased the risk of crop quality losses.
The two species of canola come from the mustard family: the Argentine type (Brassica napus) and the Polish type (Brassica rapa). While Argentine varieties need about 95 days to reach maturity, Polish varieties mature in approximately 80 days. The Argentine varieties are taller, have a higher yield potential and have a higher oil content than the Polish varieties. Spring and fall varieties are available in both species. However, spring varieties are damaged by the winter weather conditions that many areas in the United States experience. Research has found that fall varieties yield 30 to 40 percent better than those planted in the spring.
Canada is the biggest single producer of canola, but the European Union countries grow more canola.
Processing
A handful of plants process most of the canola grown in the United States. Archer Daniels Midland owns facilities in Windsor, Canada; Atlanta, Georgia; and Velva, North Dakota. Central Soya and Calgene operate a plant in Chattanooga, Tennessee, while Cargill owns processing facilities in Calvet, Saskatchewan. The latter company is building a second processing facility adjacent to the existing facility, doubling oilseed processing capacity to 1.5 million tons annually. Northstar Bioenergy, a North Dakota company, is also building a refining facility scheduled to open in 2008.
Value-added Products
Uses of canola include feed products for livestock consumption and food products for human consumption. Canola meal contains approximately 38 percent protein and is complementary to soybean meal. Livestock are able to utilize a mix of soybeans and canola better than either of the meals separately. While some canola is fed to livestock, most is crushed into oil and used in food products.
Health Benefits
The demand for canola oil was heightened when the FDA approved a qualified health claim for the oil. Bottled canola oil and foods that use it as the primary oil are now permitted to state on their label that substituting it for saturated fats may reduce the risk of coronary heart disease.
Canola has the lowest saturated fatty acid level of any vegetable oil on the market, making it a close substitute for other oils. Canola oil also contains a high level of polyunsaturated fatty acids, some of which cannot be made in the human body. These types of fat have been shown to reduce cholesterol levels. As more consumers recognize canola oil as a “healthy” oil, the amount of it used both in cooking and in processed foods will increase. Canola oil consumption is expected to continue to rise until it exceeds that of corn and cottonseed oils, becoming second only to soybean oil. Taco Bell and McDonalds' have switched to using canola oil or a canola oil blend in their foodservice operations.
Canola Prices
Canola prices are benefiting from the overall strength of the vegetable oil market. They set a new high in 2007, reaching $18.50 per hundredweight (cwt). The previous high of $12.90 per cwt was established in 1996. The price of canola follows other oilseed crops.
Research
Since canola is a relatively young crop in the United States, it follows that canola research began only a few years ago. The late 1980s marked the beginning of some research. The first U.S. Canola Association conference was held in 1992 to increase and coordinate canola research. A product of the conference, the National Canola Research Program (NCRP), was created in 1993. The NCRP supports various regional programs that focus on canola production.
Research initiatives that improve the crop for both the farmer and the processor are the concentration of current breeding efforts. These initiatives include: increased seed oil and protein levels; higher yield; enhanced disease and insect tolerance; decreased growing days to maturity; and changes in the crop’s fatty acid profile. Herbicide-resistant canola varieties have been a focus of many organizations as has the development of varieties that overwinter better than those currently available.
Links
Northern Canola Growers Association
Canola Council of Canada
Profile originally created August 2003 and updated March 2008.