At least four major producers in Canada have announced plans in the past two months to grow and improve rapeseed crushing factories in Canada. Ceres Global, Cargill, Viterra and Richardson International have all made announcements to expand their capacity by roughly 5.7 million tonnes in total from 2024. This marks an increase of 50% from the 10.3 million tonnes crushed in 2020 by the aforementioned companies.
The plans come following firm global demand for rapeseed products in the past year, particularly for biofuel products. Canadian crush hit a record 958,000 tonnes and 902,000 tonnes in March and April respectively on the back of this demand. Green energy requires vegetable oils as a feedstock, which has caused prices across the vegetable oil complex to surge.
The firm demand has exacerbated tight supply issues in Canada, with available stocks falling to 6.57 million tonnes in March 2021, the lowest level in eight years. Canada has even needed to import rapeseed from Ukraine this year, a first for the country, emphasizing how firm demand is and just how tight the market is at the moment.
Canada’s production for 2021/22 is expected to be higher by 1.28 million tonnes y-o-y, at 20 million tonnes, which should also support an increase in crushing rates.