Canola may be big beneficiary of move to healthier food- Market Watch

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Published: February 6, 2003

Most of us rolled our eyes when we heard that McDonald’s had been sued for contributing to obesity in children.

And we applauded when the judge dismissed the case, saying no one is forced to eat at McDonald’s.

However, the issue doesn’t end there and the social context in which the McDonald’s suit was launched is about to make major changes in the food industry, with implications for farmers.

Obesity is of great concern.

An estimated 15 percent of Canadian adults and 20 percent of Americans are considered obese.

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A shopper holds a clear plastic container of golden vegetable oil in her hand and looks at it in the aisle of a grocery store.

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Global vegetable oil stocks are forecast to tighten in the 2025-26 crop year, this should bode well for canola demand.

An estimated 25 percent of Canadian children are considered to be overweight and between 1981 and 1996 the prevalence of obesity more than doubled in boys and girls. Obesity can greatly increase the risk of diabetes and cardiovascular disease.

Willie Loh, head of market development for Cargill specialty oils, thinks parents will change buying trends to protect their children from weight-related disease.

People might not worry about a chubby 12 year old, “but in the next decade, they are going to be 22 year olds with diabetes,” he said.

While the first case against McDonald’s was dismissed, similar cases will test the law in other ways, just as smokers did against tobacco companies.

The fast food industry will become worried that Mom and Dad might stop taking Junior for a hamburger.

McDonald’s has already been shaken by its first quarterly loss ever, with analysts chalking it up to more people turning to more upscale, healthy and quick meals.

Loh is sure the fast food giants will start shifting from a concentration on taste and convenience to production of healthier food.

“Nutrition will become a driver for their business,” Loh said.

Food buyers are becoming more sophisticated, he added. About half of consumers read food labels and while they might not understand all of it, they know enough to judge what is good and what is bad.

One of the healthiest food oils, canola, is also one of the easier crops to modify to meet consumer needs. Prairie farmers are already growing varieties of high oleic acid canola, known for low levels of saturated fat and zero trans fatty acids, two promoters of heart disease.

Restaurants that understand consumers’ new health consciousness are keen to get this oil.

Soybean growers can’t provide this yet, giving canola producers a competitive edge in the years to come.

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