Marketing

Consumer focus on heart-healthy oils and federal policy reinforcing the need for U.S. energy security have been two driving forces behind strong demand for canola oil. Canola oil is one of the richest dietary sources of omega-3 and omega-6 polyunsaturated fats. It is low in saturated fats and high in oleic acid. These attributes made it a preferred vegetable oil for food manufacturers after trans fat labeling regulations were finalized in 2006. In October 2006, the Food & Drug Administration made the following statement:

“Limited and not conclusive scientific evidence suggests that eating about one and a half tablespoons (19 grams) of canola oil daily may reduce the risk of coronary heart disease due to the unsaturated fat content in canola oil. To achieve this possible benefit, canola oil is to replace a similar amount of saturated fat and not increase the total number of calories you eat in a day.”

In August 2010, the U.S. Environmental Protection Agency finalized the canola pathway, which made canola oil an eligible feedstock for biodiesel and renewable diesel production in the Renewable Fuel Standard (RFS2) program. Biodiesel producers were now able to process canola oil into biodiesel as part of the RFS2. Canola oil was 10 percent of the feedstock utilized for U.S. biodiesel production in 2011, 11 percent in 2012 and 6 percent in 2013.

Nationally, more acres of canola have been planted and harvested than ever before. However, U.S. production still doesn’t meet demand. Approximately 1.3 million acres were harvested in 2013. Closer to home, more winter canola is being planted in the region. Oklahoma is now the second largest producer of canola in the U.S.; it planted 205,000 acres in 2013.

Historically, access to local delivery points has been a limitation for Missouri producers. Several companies, however, will work with producers to offer contract production and assist with delivery options. Those companies include:

• Producers Cooperative Oil Mill (Oklahoma City, Oklahoma)
• Hart AgStrong (Bowersville, Georgia, and Trenton, Kentucky)
• Resaca Sun (Resaca, Georgia)

The increase of canola acreage in the Great Plains and increasing demand for biodiesel were also factors that motivated the recent announcement by Northstar Agri Industries to build a canola processing facility in Enid, Oklahoma. Construction is expected to be completed in 2015.