Australia’s Canola Growers Benefit from EU Biofuel Boom

A new industry report predicts that canola prices could continue to climb past their recent record-breaking levels over the next 10 years as emissions policies in the EU and North America shift, according to Oilseed & Grain News of October 19.  

As countries take steps to phase out fossil fuels and increase utilization of biodiesel, demand for canola is rising due to this new value channel. And as drought in Canada, the world’s top exporter has significantly cut global supply, demand from the EU continues to climb as it is phasing out palm oil from its biodiesel production. This has driven canola prices up by 23.5 percent, approaching $1000 per ton, the report said. 

This global scenario represents a major opportunity for Australia’s canola growers, who in 2017 came very close to losing the $1 billion EU market when the EU threatened to close its ports to Australian canola unless it was proven to be a low-emission variant. Australia’s CSIRO released a report verifying the suitability of Australia’s canola just in time.