Cargill urges action to deal with canola demand

By Alex McNally

- Last updated on GMT

Related tags: Canola, Trans fat, Cargill

US ingredient firm Cargill is urging growers to secure next
season's canola crop to keep on top of growing consumer demand for
healthy oils and maintain a continuous supply of the oil.

Consumer demand has been a driving force in the canola market. Customers are increasingly demanding oils with no trans fat and low levels of saturated fat. The company is also offering a deal to growers under its Specialty Canola Oils Program, which allows growers to establish a "risk free price hedge"​ on the first 10 bushels an acre of production. They also have the opportunity to establish an attractive prime basis that can provide more than $11 a bushel to many growers and a significantly higher per acre return above commodity canola, Cargill said. Already in response to demand, the company has added two new products to its Clear Valley line canola - a doughnut shortening and an icing shortening. It has also changed the brand name of its TransEnd all-purpose shortening to include this product under the Clear Valley umbrella. Although canola oil has not yet penetrated the food processing segment in the same way as partially hydrogenated soy oil, which has tended to be the preferred option to slash trans fats, there are clear signs that the oil is starting to attract more attention and demand. High stability canola oil does not require hydrogenation and can be used successfully as a repeat use frying oil. Indeed, the oil's potential to penetrate the food processing sector prompted Canada's Canola Council earlier this year to predict the production of the crop to more than double by 2015, from 9.1 million tons to 15million. Additionally, in August this year Cargill announced it will build a second canola processing plant in Canada in a move to meet growing demand. The new plant will be located adjacent to Cargill's existing operation in Clavet, Saskatchewan, and is expected to double the firm's oilseed processing capacity to 1.5m tons annually. Cargill said the added crush capacity is supported by strong demand for hi oleic canola oil in addition to growing demand for generic canola oils. Cargill's canola program offers "exceptional agronomic advantage, excellent yield, effective weed control, superior per acre returns, and grower selected delivery periods." ​Cargill Oil Seed Processing facility processes 2,400 tons per day of canola out of Clavet, Saskatchewan. The facility is the largest soft-seed plant in North America. The processing facility produces canola oil and specialty canola oils as well as canola meal for the domestic North American and world markets.

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